Question

Write short notes.

Stages of economy

Answer 1

1. Agricultural revolution: Before the discovery of agriculture, human society was into hunting-gathering and later passed through pastoral phases. With the introduction of agriculture, society entered into a new stage. Use of technology for large-scale farming led to higher productive capacity, increased food production, and development of specialised tasks such as designing tools, raising animals, etc. This stage witnessed the division of labour, permanent settlement, and advanced trade.
2. Industrial revolution: It greatly transformed the social and economic life of people. The revolution took place around the middle of the 18th century, first in England and then elsewhere in Europe and North America. Industrialisation resulted in four major economic changes, namely:
   a. Division of labour: Reduced importance of human skills and specialised division of labour.
   b. Introduction of new forms of energy: Invention of the steam engine and reduced use of animal and human muscle energy.
   c. Centralisation of work: Creation of new centralised and impersonal place of work, i.e. factory. d. Enabled mass production: Rapid development of manufacturing sector and expanded production activities. Industrialisation transformed the production system and had an impact on society. On one hand, it raised living standards but on the other, it contributed to increased inequality between factory owners and industrial workers. Labour was organised from late 19th century onwards and Governments in the West were forced to make labour reforms.
3. Information revolution: By the middle of the 20th century, nature of production changed. The role of labour reduced in manufacturing while service sector employed a huge number of people. Also, the development of computer and IT in Europe, the US, and much of newly industrialised Asia changed the nature of work. The three key changes it brought in were:
   a. Mechanical skills to literacy skills: Increased importance of the ability to communicate, write, present and use computer technology.
   b. Enabled work from anywhere: Computer technology-enabled decentralisation of work. c. Tangible products to ideas: Economy driven by the tertiary (service) sector instead of the manufacturing sector