Modernization as an economic process

From economic point of view modernization refers to the process of industrialization. It involves:

• Technological development.

• Greater investment in industry.

• Expansion of manufacturing sector.

• Mechanization of agriculture.

• Growth of science and technology.

The expected outcomes of modernization are:

• Higher productivity of labor.

• Higher income (per capita).

• Reduced contribution of agriculture to gross domestic product.

• Increased self-reliance.

• Reduced dependence on natural resources and vagaries of nature.

Since productivity of labor depends on capital, technology and organization, modernization was supposed to improve labor productivity paving way for the higher level of income and improved quality of life. With better income people can also expect improvement in education, health and life expectancy and thus higher quality of life. Eventually they may afford to work for shorter hours and spend more time on leisure and culture.