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Technology infrastructure did not advance as much as necessary for supporting urban
industries. Industries were dominated by monopolies that extracted resources without developing
in-country capacity. There are many poor little countries whose geographical endowments have
been developed into paradise for tourist. Monuments of grandeur and wealth stand majestically in
full view of the poor masses. These are the elegant high rise hotels, beautiful beaches, luxuries
airports, and other special facilities for foreign visitors. But these symbols of affluence and
progress are owned and managed by foreigners. The locals become waiters, bellboys, souvenir
sellers, hotel clerks and entertains. We cannot say that poverty will be eliminated by job creation,
because we still need a healthcare system, access to markets, and so forth. Bish reminds us that we
need institutions for development, but while government is important, it cannot do everything on
its own. Likewise, nongovernmental organizations (NGOs) play an important role, but are also not
as effective if working alone. Organization is important, but it is more complicated than that
Small is Beautiful: A Study of Economics as if People Mattered which challenged the idea that
larger scale and increased productivity are paramount to development. Schumacher argues that it
is important for people to feel like they are doing meaningful work and take pride in it, rather than
only push for automation and higher throughput. This set the stage for moving in a direction that
takes into account the human aspect, and not simply financial success. For example, there has been
increasing attention on concepts such as the triple bottom line, which looks at the impact on people,
There are several ways in which technologies are considered to be intermediate: 1) in price,
and 2) in time, as some technologies are meant to be transitional and support people in moving
from manual labor using hand tools to large-scale mechanized technology. German-born British
economist E.F. Schumacher first conceived of the concept after a visit to Burma (now Myanmar)
in 1955. He concluded that poor countries might realize progress in productivity by adopting
advanced technologies but that those advances would do little to increase employment. What was
needed, he maintained, was an intermediate technology adapted to the unique needs of each
book Small Is Beautiful (1973), he argued that capitalism brought higher living standards at the
cost of deteriorating culture. His belief that natural resources should be conserved led him to
conclude that bigness—in particular, large industries and large cities—would lead to the depletion
of those resources. The term Intermediate Technology first came into general use following the
writings of E. F. Schumacher, and particularly after the setting up by him of the Intermediate
Technology Development Group in 1965. ‘Intermediate Technology’ is now part of the literature
economist, that is, he saw I.T. as the stage between the subsistence £1 per work-place economy
and the developed, several thousand pound per work-place economy. ‘Intermediate ’unfortunately
has connotations of the inferior or the second rate and also implies that it is a stage to something
more desirable. For these reasons ‘appropriate’ may be a more suitable choice and in fact the
I.T.D.G. journal has the title ‘Appropriate Technology’ ‘Technology’ too could be criticised as
implying ‘engineering machinery’ whereas in fact the Appropriate Technologist is engaged with
total development which includes social and cultural factors, and in practice may be concerned
with management, accountancy and marketing rather than engineering or technology. ‘Socially
provide a greater amount of water to their plants more easily compared to watering by bucket,
while requiring much less infrastructure than constructing irrigation dams and pipes
Intermediate technology, simple and practical tools, basic machines, and engineering
systems that economically disadvantaged farmers and other rural people can purchase or construct
from resources that are available locally to improve their well-being. Designed to focus on people
rather than machines, intermediate technology is considered to be more harmonious with the
environment and with traditional ways of life. There is an interesting niche here, as intermediate
technologies work when it is too expensive for mass manufacturers to get their larger-scale
technologies are more affordable and can be more decentralized, helping to bridge that last mile
may have an important place. For example, you can imagine that it may not make sense to use a
Schumacher’s propositions
1. Projects or factories have to be set up in rural areas where people live. These reduce urban
migration.
2. Projects must be simple and cheap so that more projects can be created
3. Projects must be shorter in order to minimize the need for technical skills not only in
The aforementioned strategies for economic development can only be achieved, according to
countries and that of the developed ones, like P1- technology for the primitive technology of the
developing countries and P1000- technology for the modern technology of the developed
countries. The less developed countries should not adopt the P1000-technology because this is
expensive and inappropriate. Rather, they should apply the intermediate technology which is the
However, not a few economist claimed that such technology tends to slow down the rate of
economic growth in contrast to the use of modern technology. Usually, these view comes from
highly trained social-scientists without actual exposure to poverty and misery. They are inclined
to stress productivity or technical efficiency. Their lack of primary observation of and association
with the poor masses has made them insensitive to more urgent and more important economic
programs. There is no question that efficiency of production id good. But if it benefits only few
groups and neglects the unemployed masses, then such efficient production is not good.
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