New Economy Time Capsule

New Economy Time Capsule
This entry is part 1 of 4 in the series Information Technology Revolution

The world economy has been reshaped and significantly transformed in recent years. While we tend to refer to this transformed economy as the new economy, according to the theory of Kondratieff cycles, this economy is not so radically new. It is essentially a reborn economy; this transformation takes place about every 40 to 60 years. Global development has unfolded through the succession of new economies. The new economy may be represented as a comparable economic transition driven particularly by revolution in technology. The first new economy (1770 to 1830) was characterized by water mechanization.  The second new economy (1820 to 1880) was focused on steam mechanization, which led to the development of railroads. The third new economy (1870 to 1930) brought major development in electricity. The fourth new economy (1910 to 1970) contributed to the growth of the automobile industry. The fifth new economy, which began around 1960, kick-started the development in defence, television, mainframe computers, personal computers, telecommunications, and entertainment (Norton, 1999).

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