Large-scale Technology is at Heart of Economic Structural Transformation in Ethiopia

Tsegaye Tegenu, May 14, 2011

In the European history, large scale technologies have played central role in the structural transformation the economy and society. The introduction of threshing machine, iron plows, seed drills and other important tools in the 18th century could increase the scale in agriculture. In the industrial sector, the technologies of the industrial revolution related to textile, iron production, mining, and steam power have led to an increase in the scale of production. Much later on, during the time of the second industrial revolution the introduction of new technologies such as steel, concrete, chemicals, paper and internal combustion engines led to even larger scales of efficient production. The introduction of influential technologies both in the agriculture and manufacturing sectors increased the scale of production and required large capital investment.