Macro Policies for Appropriate Technology: An Introductory Classification

Abstract

In every case, an actual decision about technology takes place at the micro level. That is to say, when an investment decision is made, which embodies a particular technology, this decision is made by decision-makers within a productive unit. The productive unit in question may be a large organisation with worldwide activities, such as a multinational corporation, or it may be a very small unit, such as a family firm or farm. Whatever the size of the unit, the level of decision-making is defined here as micro , since the decisions are taken by the units in question in the light of their own objectives and resources. 2 But while each decision takes place at the micro level, these decisions are strongly influenced by the external environment in which they take place. Apart from direct interventions — when governments themselves make particular investment/technology decisions — governments can only influence technology decisions by influencing this external environment. Direct interventions tend to be confined to a small part of total technology decisions, especially in a mixed economy. Hence government’s greatest potential influence on technology decisions takes the form of influencing the decision-making unit’s external environment. Despite this, the appropriate technology institutions have tended to confine their activities to direct intervention. 3 These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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