Question

“Modernisation as a planning objective shows a dichotomy with employment generation.” Justify the statement.

Answer 1

Modernization means adopting new and advanced technology in the production process. In the beginning, this may result in job losses for some workers. However, over time, the use of modern technology and improved inputs increases productivity and raises people’s incomes. Higher income leads to greater demand for goods and services. To meet this increased demand, production must expand, which creates more employment opportunities in the economy.

Even in the short run, modernization generates jobs for skilled workers. If proper training and vocational education are provided, it can improve the quality of employment as well as earnings. Therefore, modernization and employment generation are not opposite to each other; rather, they complement one another.