Q.Give a short note on Sen's 'Choice of Technique'.

Amartya Sen's 'Choice of Technique' (1960) explains how a developing country should choose between labour-intensive and capital-intensive methods of production, the answer depending on whether it wants more employment/output now or a bigger surplus for faster future growth.

The problem. In a labour-surplus, capital-scarce developing economy like India, the same good can be produced either by a labour-intensive technique (more workers, less machinery) or a capital-intensive technique (more machinery, fewer workers). Amartya Sen examined which technique should be chosen.

Sen's argument.

• A labour-intensive technique creates more employment and higher current output and consumption, but leaves a smaller surplus for investment.
• A capital-intensive technique employs fewer workers but generates a larger investible surplus, allowing higher reinvestment and faster growth in the future. …