Question

1. During the 20^th century, what role did changes in innovation, technology, and communication play:

• in the decline of agriculture’s relative size (in terms of # of jobs) while simultaneously allowing for agricultural production to significantly increase?
• in the decline of manufacturing’s relative size, (in terms of # of jobs) resulting in a fourfold increase in the amount of manufactured goods with only a 20% increase in manufacturing employment?
• growth in the services sector?
• growth in international trade?

Answer 1

During 20th ceny changes in innovation, technology and communication plays a significant role in decline in relative size of agriculture while simultaneously allowing for agricultural production to increase significantly. Although this innovation has led to decrease in the no. Of workers required on a filed for agrarian activities leading to increase in disguised unemployment and overall employee in agriculture sector in comparison to previous times. But at the same time innovation has also led to a significant increase in agricultural production due to which global food prices are falling over the past 50 years at the rate roughly 0.5-1% per year. This increased production due to innovation which has placed higher value in unprocessed raw material within a chain and use of technology which has accelerated the growth and production with effective production. This is very helpful in decreasing poverty through rural development.

In the manufacturing sector innovation, technology amd communication has led to significant increase in the production, growth in service sector and increase in international trade. Although several studies have found that technology has contributed to increase in unemployment in several countries. While process of innovation can lead to increase in unemployment but product innovation can lead to the emergence of new firms, sectors, and thus new jobs. So, policies should be framed in such a way that maximum new jobs can be created.