What are the positive impacts due to modernisation on economy?

Question

it can be on any specific group of community.

Answer 1

Well, to start, I'm not certain what you mean by "modernisation".  I've seen the term used in a couple of contexts: sometimes it describes a rather primitive society moving up the technological and financial ladder to first-world status; in other cases it would just mean upgrading an already first-world facility to the latest generation of technology.

Thus, if I got the aborigines of the Kalahari desert in Namibia to build permanent homes and irrigate, grow crops, keep domesticated animals, install electricity, and sleep indoors, I'd have modernized them.  But if I just went to the local GM assembly plant and installed the next generation of robotics, I'd have modernized it.

Clearly, the economic implications of both actions would be different.  In the case of primitive people, the economy would transform from communalism and simple material ownership to a basis of real estate and a monetary system.  In the case of modernizing current technology, the economic aspects would involve maintaining efficiencies, stimulating cash flow, maintaining employment, etc.

I find it interesting that economists talk about things like this in terms of "positive" impacts.  The economy is not an organism, it just exists and responds to forces but in itself is neutral--the economy itself doesn't mind if we're in a recession or a bubble or a period of robust sustained growth.  And whether a particular change in economy is considered "positive" by the people it impacts depends entirely on the values of those people--it's a subjective judgment.  The reason that the Kalahari tribes haven't modernized is that they are perfectly happy with their (by our standards) impoverished way of living.  

As travel writer/TV host Anthony Bourdain commented on his "No Reservations" show after having gagged down the worst meal of his life with those Kalahari bush natives, there is no absolute way of telling if we'd all be happier or not if we all lived like them.