Productivity is said to be a major indicator
of the resilience of an economic system. Even the rise and
fall of economies, and hence, swings in the fortunes of
civilizations are explained through levels of productivity.
Credit for a buoyant United Kingdom economy during the
first two decades of the 20th century is given to its relatively
higher level of productivity. Similarly, the high German
productivity in the 1920s through the mid-1930s led to the
emergence of a strong national economy in Germany.
The comparative advantage of its productivity during the period
1948-73 gave the United States an unrivaled economic
position in the world. Japan has been able to penetrate
the world market during the 1970s in a bigger way only through
higher level of productivity.