Over the past hundred and twenty years, the geopolitical and economic landscape of the world has undergone some very drastic shifts and changes.
Even with the strife of two world wars, a handful of smaller-scale wars, and a massive nuclear arms race during the Cold War, it is said we live in some of the most peaceful times in human history.
We owe a majority of this newfound repose to the increasing economic development of nations across the globe by improving the lives of their citizens through political, social, and of course, economic means.
Now, let’s delve into this subject a little deeper and discuss a few specific points on economic development and how it will affect the world of tomorrow.
1 – Industrialization
Since the dawn of the 21st century, advancements in technology are at the forefront of developing countries and their economies.
Innovations allow the opportunity for growth by simply keeping the cogs moving and avoiding stagnation.
Technological industrialization and economics go hand in hand by utilizing the “less is more” approach, meaning a company can automate a majority of its production processes, yielding a greater output than you would with a larger scale operation that’s reliant on antiquated production models.
This is made possible by implementing faster, more streamlined and efficient manufacturing methods, which allows for a greater assortment of goods and services to both meet the supply and demand of a nation’s respective citizens, as well as allowing the possibility of exports.
Technological innovation, new research and development methods, and streamlined manufacturing processes have shown time and time again to cause massive surges in the economies of both first world nations, as well as developing nations.
2 – Standardization
With increasing trends in the field of innovation and the ever expanding breadth of technology, there is a critical issue which, even in developed nations, still gets put by the wayside: standardization.
Think about it for a second, have you ever worked at a job where nobody seemed like they had the slightest clue what was going on? Without a set of rules to follow and a distinct and defined goal, production, efficiency, and even the safety of the employees are greatly jeopardized.
It is absolutely vital to the economy for business to have the correct safety and quality standards in place to keep things running smoothly and maintaining a happy and safe workforce.
Economically speaking, standardization allows higher quality production standards throughout the manufacturing process thanks to the “digital thread” of technology that reduces delays in communication between the engineers who designed the product to the workers and machines involved in the production process, all the way to the hands of the consumer; thus allowing for higher production in a much shorter period of time, at a fraction of the cost as a company that doesn’t standardize their processes.
3 – Growth
Contrary to popular belief, economics spans much wider than numbers on a flow chart. There are a wide variety of factors that gauge rather or not a countries overall GDP is growing at a stable rate.
One of the most important factors economists use to gauge this growth is microeconomics, more specifically, per capita income, which is the measure of income based on the individual as opposed to a nation as a whole.
The greater a regions per capita income, the higher the quality of life is for the populous.
With the advent of technology, not only do local businesses and large companies reap the benefits, but the individual is able to reap the benefits of technology as well.
A person can easily find some freelance work online, enabling them to work from anywhere in the world but can send money back home with the simple press of a button.
With online remittance services like Remitly, all the person has to do is load money on their account and press send and within minutes, money is sent across the globe back to their respective nations, enabling whole, new sources of micro and macro economic growth which weren’t available before technology, industrialization, and standardization took the helm of economic development.
Economic Development Trends
If you take the time to view the statistics, even the most remote regions of the globe are starting to show growth in economic trends, so it’s safe to say we are in for a very bright and promising future.