Industrialisation

Industrialisation

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Industrialization is the process of social and economic change that transforms a human group from an agrarian society
Agrarian society
An agrarian society is a society that depends on agriculture as its primary means for support and sustenance. The society acknowledges other means of livelihood and work habits but stresses the importance of agriculture and farming, and was the most common form of socio-economic oganization for...

 into an industrial
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 one. It is a part of a wider modernisation process, where social change
Social change
Social change refers to an alteration in the social order of a society. It may refer to the notion of social progress or sociocultural evolution, the philosophical idea that society moves forward by dialectical or evolutionary means. It may refer to a paradigmatic change in the socio-economic...

 and economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...

 are closely related with technological innovation
Innovation
Innovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...

, particularly with the development of large-scale energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...

 and metallurgy
Metallurgy
Metallurgy is a domain of materials science that studies the physical and chemical behavior of metallic elements, their intermetallic compounds, and their mixtures, which are called alloys. It is also the technology of metals: the way in which science is applied to their practical use...

 production. It is the extensive organisation of an economy
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...

 for the purpose of manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...

.

Industrialization also introduces a form of philosophical
Philosophy
Philosophy is the study of general and fundamental problems, such as those connected with existence, knowledge, values, reason, mind, and language. Philosophy is distinguished from other ways of addressing such problems by its critical, generally systematic approach and its reliance on rational...

 change where people obtain a different attitude towards their perception of nature
Nature
Nature, in the broadest sense, is equivalent to the natural world, physical world, or material world. "Nature" refers to the phenomena of the physical world, and also to life in general...

, and a sociological process of ubiquitous rationalisation.

There is considerable literature on the factors facilitating industrial modernisation and enterprise development. Key positive factors identified by researchers have ranged from favourable political-legal environments for industry and commerce, through abundant natural resources
Natural Resources
Natural Resources is a soul album released by Motown girl group Martha Reeves and the Vandellas in 1970 on the Gordy label. The album is significant for the Vietnam War ballad "I Should Be Proud" and the slow jam, "Love Guess Who"...

 of various kinds, to plentiful supplies of relatively low-cost, skilled and adaptable labour
Wage labour
Wage labour is the socioeconomic relationship between a worker and an employer, where the worker sells their labour under a formal or informal employment contract. These transactions usually occur in a labour market where wages are market determined...

.

As industrial workers incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...

 and economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...

.

The first country to industrialise was the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 during the Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...

 commencing in the eighteenth century.

By the end of the 20th century, East Asia
East Asia
East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...

 had become one of the most recently industrialised regions of the world .

Description


According to the original sector classification
Three-sector hypothesis
The three-sector hypothesis is an economic hypothesis which divides economies into three sectors of activity: extraction of raw materials , manufacturing , and services...

 of Jean Fourastié
Jean Fourastié
Jean Fourastié was a French economist, notable for having coined the expression Trente Glorieuses to describe the period of prosperity that France experienced from the end of World War II until the 1973 oil crisis .-Biography:Fourastié received his elementary...

, an economy consists of a "Primary sector" of commodity production (farming, livestock breeding, exploitation of mineral resources), a "secondary sector" of manufacturing and processing (as paid work), and a "Tertiary Sector" of service industries. The industrialization process is historically based on the expansion of the secondary sector in an economy dominated by primary activities.

The first transformation to an industrial economy from an agricultural one is called the Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...

 and took place from the mid 18th to early 19th century in certain areas in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

 and North America; starting in Great Britain , followed by Germany, and France. This now is called the first industrial revolution.

The Second Industrial Revolution
Second Industrial Revolution
The Second Industrial Revolution, also known as the Technological Revolution, was a phase of the larger Industrial Revolution corresponding to the latter half of the 19th century until World War I...

 describes the later changes that came about in the mid 19th century after the invention of steam engine, internal combustion engine
Internal combustion engine
The internal combustion engine is an engine in which the combustion of a fuel occurs with an oxidizer in a combustion chamber. In an internal combustion engine, the expansion of the high-temperature and high -pressure gases produced by combustion apply direct force to some component of the engine...

, electricity
Electric power
Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...

 and the construction of canals, railways and electric power lines. The invention of the assembly line
Assembly line
An assembly line is a manufacturing process in which parts are added to a product in a sequential manner using optimally planned logistics to create a finished product much faster than with handcrafting-type methods...

 gave this phase a boost.

The lack of an industrial
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 sector in a country can be a handicap in improving the country's economy and power, so governments encourage or enforce industrialization. On the other hand, the presence of industry in a country does not mean in general that it will bring wealth and prosperity to the people of that country. And third, the presence of an industry in one country can make it more difficult for other countries to develop the same type of industry. This can be seen in the computer- software-, and internet industries. Started from the U.S.A. around the 1990's these industries seemed to spread over the world. But after a period of monopolisation less than a decade long, the globally leading companies are concentrated in the U.S.A. Their economic power and capacity to dominate the media work against the developing of the same types of industry in other states.

History of industrialization


Most pre-industrial economies had standards of living not much above subsistence, among that the majority of the population were focused on producing their means of survival. For example, in medieval
Middle Ages
The Middle Ages is a periodization of European history from the 5th century to the 15th century. The Middle Ages follows the fall of the Western Roman Empire in 476 and precedes the Early Modern Era. It is the middle period of a three-period division of Western history: Classic, Medieval and Modern...

 Europe, 80% of the labour force was employed in subsistence agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...

.

Some pre-industrial economies, such as classical Athens
Classical Athens
The city of Athens during the classical period of Ancient Greece was a notable polis of Attica, Greece, leading the Delian League in the Peloponnesian War against Sparta and the Peloponnesian League. Athenian democracy was established in 508 BC under Cleisthenes following the tyranny of Hippias...

, had trade and commerce as significant factors, so native Greeks could enjoy wealth far beyond a sustenance standard of living through the use of slavery
Slavery
Slavery is a system under which people are treated as property to be bought and sold, and are forced to work. Slaves can be held against their will from the time of their capture, purchase or birth, and deprived of the right to leave, to refuse to work, or to demand compensation...

. Famine
Famine
A famine is a widespread scarcity of food, caused by several factors including crop failure, overpopulation, or government policies. This phenomenon is usually accompanied or followed by regional malnutrition, starvation, epidemic, and increased mortality. Every continent in the world has...

s were frequent in most pre-industrial societies, although some, such as the Netherlands and England of the seventeenth and eighteenth centuries, the Italian city states
Medieval commune
Medieval communes in the European Middle Ages had sworn allegiances of mutual defense among the citizens of a town or city. They took many forms, and varied widely in organization and makeup. Communes are first recorded in the late 11th and early 12th centuries, thereafter becoming a widespread...

 of the fifteenth century, the medieval Islamic Caliphate
Caliphate
The term caliphate, "dominion of a caliph " , refers to the first system of government established in Islam and represented the political unity of the Muslim Ummah...

, and the ancient Greek
Ancient Greece
Ancient Greece is a civilization belonging to a period of Greek history that lasted from the Archaic period of the 8th to 6th centuries BC to the end of antiquity. Immediately following this period was the beginning of the Early Middle Ages and the Byzantine era. Included in Ancient Greece is the...

 and Roman
Ancient Rome
Ancient Rome was a thriving civilization that grew on the Italian Peninsula as early as the 8th century BC. Located along the Mediterranean Sea and centered on the city of Rome, it expanded to one of the largest empires in the ancient world....

 civilisations were able to escape the famine cycle through increasing trade and commercialisation of the agricultural sector
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...

. It is estimated that during the seventeenth century Netherlands import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...

ed nearly 70% of its grain supply and in the fifth century BC Athens imported three quarters of its total food supply.

Industrialisation through innovation
Innovation
Innovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...

 in manufacturing processes first started with the Industrial Revolution in the north-west and Midlands of England in the eighteenth century. It spread to Europe and North America in the nineteenth

Industrial revolution in Europe


In the eighteenth and nineteenth centuries, the United Kingdom experienced a massive increase in agricultural productivity known as the British Agricultural Revolution
British Agricultural Revolution
British Agricultural Revolution describes a period of development in Britain between the 17th century and the end of the 19th century, which saw an epoch-making increase in agricultural productivity and net output. This in turn supported unprecedented population growth, freeing up a significant...

, which enabled an unprecedented population growth
Population growth
Population growth is the change in a population over time, and can be quantified as the change in the number of individuals of any species in a population using "per unit time" for measurement....

, freeing a significant percentage of the workforce from farming, and helping to drive the Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...

.

Due to the limited amount of arable land and the overwhelming efficiency of mechanised farming, the increased population could not be dedicated to agriculture. New agricultural techniques allowed a single peasant
Peasant
A peasant is an agricultural worker who generally tend to be poor and homeless-Etymology:The word is derived from 15th century French païsant meaning one from the pays, or countryside, ultimately from the Latin pagus, or outlying administrative district.- Position in society :Peasants typically...

 to feed more workers than previously; however, these techniques also increased the demand for machine
Machine
A machine manages power to accomplish a task, examples include, a mechanical system, a computing system, an electronic system, and a molecular machine. In common usage, the meaning is that of a device having parts that perform or assist in performing any type of work...

s and other hardware
Hardware
Hardware is a general term for equipment such as keys, locks, hinges, latches, handles, wire, chains, plumbing supplies, tools, utensils, cutlery and machine parts. Household hardware is typically sold in hardware stores....

s, which had traditionally been provided by the urban
Urban area
An urban area is characterized by higher population density and vast human features in comparison to areas surrounding it. Urban areas may be cities, towns or conurbations, but the term is not commonly extended to rural settlements such as villages and hamlets.Urban areas are created and further...

 artisan
Artisan
An artisan is a skilled manual worker who makes items that may be functional or strictly decorative, including furniture, clothing, jewellery, household items, and tools...

s. Artisans, collectively called bourgeoisie
Bourgeoisie
In sociology and political science, bourgeoisie describes a range of groups across history. In the Western world, between the late 18th century and the present day, the bourgeoisie is a social class "characterized by their ownership of capital and their related culture." A member of the...

, employed rural
Rural
Rural areas or the country or countryside are areas that are not urbanized, though when large areas are described, country towns and smaller cities will be included. They have a low population density, and typically much of the land is devoted to agriculture...

 exodus workers to increase their output and meet the country's needs.

The growth of their business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

 coupled with the lack of experience of the new workers pushed a rationalisation
Rationalization (economics)
In economics, rationalization is an attempt to change a pre-existing ad hoc workflow into one that is based on a set of published rules. There is a tendency in modern times to quantify experience, knowledge, and work. Means-end rationality is used to precisely calculate that which is necessary to...

 and standardisation of the duties the in workshop
Workshop
A workshop is a room or building which provides both the area and tools that may be required for the manufacture or repair of manufactured goods...

s, thus leading to a division of labour
Division of labour
Division of labour is the specialisation of cooperative labour in specific, circumscribed tasks and likeroles. Historically an increasingly complex division of labour is closely associated with the growth of total output and trade, the rise of capitalism, and of the complexity of industrialisation...

, that is, a primitive form of Fordism
Fordism
Fordism, named after Henry Ford, is a modern economic and social system based on industrial mass production. The concept is used in various social theories about production and related socio-economic phenomena. It has varying but related meanings in different fields, as well as for Marxist and...

. The process of creating a good
Good (economics and accounting)
In economics, a good is something that is intended to satisfy some wants or needs of a consumer and thus has economic utility. It is normally used in the plural form—goods—to denote tangible commodities such as products and materials....

 was divided into simple tasks, each one of them being gradually mechanised in order to boost productivity
Productivity
Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...

 and thus increase income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

.

The accumulation of capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...

 allowed investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...

s in the conception and application of new technologies, enabling the industrialisation process to continue to evolve. The industrialisation process formed a class of industrial workers who had more money to spend than their agricultural cousins. They spent this on items such as tobacco and sugar, creating new mass markets that stimulated more investment as merchants sought to exploit them.

The mechanisation of production spread to the countries surrounding England geographically in Europe such as France and and to British settler colonies
Settler colonialism
Settler colonialism is a specific colonial formation whereby foreign family units move into a region and reproduce. Land is thus the key resource in settler colonies, whereas natural and human resources are the main motivation behind other forms of colonialism...

, helping to make those areas the wealthiest, and shaping what is now known as the Western world
Western world
The Western world, also known as the West and the Occident , is a term referring to the countries of Western Europe , the countries of the Americas, as well all countries of Northern and Central Europe, Australia and New Zealand...

.

Some economic historians argue that the possession of so-called ‘exploitation colonies’ eased the accumulation of capital to the countries that possessed them, speeding up their development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...

. The consequence was that the subject country
Colony
In politics and history, a colony is a territory under the immediate political control of a state. For colonies in antiquity, city-states would often found their own colonies. Some colonies were historically countries, while others were territories without definite statehood from their inception....

 integrated a bigger economic system
Economic system
An economic system is the combination of the various agencies, entities that provide the economic structure that defines the social community. These agencies are joined by lines of trade and exchange along which goods, money etc. are continuously flowing. An example of such a system for a closed...

 in a subaltern position, emulating the countryside, which demands manufactured goods and offers raw materials, while the colonial power stressed its urban posture, providing goods and importing food. A classical example of this mechanism is said to be the triangular trade
Triangular trade
Triangular trade, or triangle trade, is a historical term indicating among three ports or regions. Triangular trade usually evolves when a region has export commodities that are not required in the region from which its major imports come...

, which involved England, southern United States and western Africa. Critics argue that this polarity still affects the world, and has deeply retarded industrialisation of what is now known as the Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...

.

Some have stressed the importance of natural or financial resources that Britain received from its many overseas colonies or that profits from the British slave trade between Africa and the Caribbean helped fuel industrial investment.

Early industrialisation in other countries


After the Convention of Kanagawa
Convention of Kanagawa
On March 31, 1854, the or was concluded between Commodore Matthew C. Perry of the U.S. Navy and the Tokugawa shogunate.-Treaty of Peace and Amity :...

 issued by Commodore Matthew C. Perry forced Japan to open the ports of Shimoda and Hakodate to American trade, the Japanese government realised that drastic reforms were necessary to stave off Western influence. The Tokugawa shogunate abolished the feudal system
Feudalism
Feudalism was a set of legal and military customs in medieval Europe that flourished between the 9th and 15th centuries, which, broadly defined, was a system for ordering society around relationships derived from the holding of land in exchange for service or labour.Although derived from the...

. The government instituted military reforms to modernise the Japanese army and also constructed the base for industrialisation. In the 1870s, the Meiji
Meiji period
The , also known as the Meiji era, is a Japanese era which extended from September 1868 through July 1912. This period represents the first half of the Empire of Japan.- Meiji Restoration and the emperor :...

 government vigorously promoted technological and industrial development that eventually changed Japan to a powerful
Regional power
In international relations, a regional power is a state that has power within a geographic region. States which wield unrivaled power and influence within a region of the world possess regional hegemony.-Characteristics:...

 modern country.

In a similar way, Russia suffered during the Allied intervention in the Russian Civil War
Allied Intervention in the Russian Civil War
The Allied intervention was a multi-national military expedition launched in 1918 during World War I which continued into the Russian Civil War. Its operations included forces from 14 nations and were conducted over a vast territory...

. The Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

's centrally controlled economy
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...

 decided to invest a big part of its resources to enhance its industrial production and infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...

s to assure its survival, thus becoming a world superpower
Superpower
A superpower is a state with a dominant position in the international system which has the ability to influence events and its own interests and project power on a worldwide scale to protect those interests...

.

During the Cold war
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

, the other European socialist countries
Eastern bloc
The term Eastern Bloc or Communist Bloc refers to the former communist states of Eastern and Central Europe, generally the Soviet Union and the countries of the Warsaw Pact...

, organised under the Comecon
Comecon
The Council for Mutual Economic Assistance , 1949–1991, was an economic organisation under hegemony of Soviet Union comprising the countries of the Eastern Bloc along with a number of communist states elsewhere in the world...

 framework, followed the same developing scheme, albeit with a less emphasis on heavy industry
Heavy industry
Heavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...

.

Southern European countries such as Spain
Spanish miracle
The Spanish miracle was the name given to a broadly based economic boom in Spain from 1959 to 1974. The international oil and stagflation crises of the 1970s ended the boom.- The pre-boom situation :...

 or Italy
Italian economic miracle
The Italian economic miracle is the name often used by historians, economists and mass media to designate the prolonged period of sustained economic growth in Italy comprised between the end of World War II and the late 1960s, and in particular the years 1950-63...

 saw a moderate industrialisation during the 1950s-1970s, caused by a healthy integration of the European economy
Economy of Europe
The economy of Europe comprises more than 731 million people in 48 different states. Like other continents, the wealth of Europe's states varies, although the poorest are well above the poorest states of other continents in terms of GDP and living standards. The difference in wealth across...

, though their level of development, as well as those of Socialist European Countries, do not match the more advanced standards of other European countries like Germany.

The Third World


A similar state-led developing programme was pursued in virtually all the Third World countries during the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

, including the socialist
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...

 ones, but especially in Sub-Saharan Africa
Sub-Saharan Africa
Sub-Saharan Africa as a geographical term refers to the area of the African continent which lies south of the Sahara. A political definition of Sub-Saharan Africa, instead, covers all African countries which are fully or partially located south of the Sahara...

 after the decolonisation period. The primary scope of those projects was to achieve self-sufficiency
Self-sufficiency
Self-sufficiency refers to the state of not requiring any outside aid, support, or interaction, for survival; it is therefore a type of personal or collective autonomy...

 through the local production of previously import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...

ed goods, the mechanisation of agriculture and the spread of education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

 and health care
Health care
Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...

. However, all those experiences failed bitterly due to a lack of realism: most countries did not have a pre-industrial bourgeoisie able to carry on a capitalistic
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

 development or even a stable and peaceful state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...

. Those aborted experiences left huge debts
Developing countries' debt
The debt of developing countries is external debt incurred by governments of developing countries, generally in quantities beyond the governments' political ability to repay...

 toward western countries and fuelled public corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

.

Petrol-producing countries


Oil-rich countries saw similar failures in their economic choices.
An EIA
Energy Information Administration
The U.S. Energy Information Administration is the statistical and analytical agency within the U.S. Department of Energy. EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and...

 report stated that OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...

 member nations were projected to earn a net amount of $1.251 trillion in 2008 from their oil exports. Because oil is both important and expensive, regions that had big reserves of oil
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...

 had huge liquidity incomes. However, this was rarely followed by economic development. Experience shows that local elite
Elite
Elite refers to an exceptional or privileged group that wields considerable power within its sphere of influence...

s were unable to re-invest the petrodollar
Petrodollar
A petrodollar is a United States dollar earned by a country through the sale of petroleum. The term was coined by Ibrahim Oweiss, a professor of economics at Georgetown University, in 1973...

s obtained through oil export, and currency is wasted in luxury good
Luxury good
Luxury goods are products and services that are not considered essential and associated with affluence.The concept of luxury has been present in various forms since the beginning of civilization. Its role was just as important in ancient western and eastern empires as it is in modern societies...

s.

This is particularly evident in the Persian Gulf states, where the per capita income
Per capita income
Per capita income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate and dividing it by the total population...

 is comparable to those of western nations, but where no industrialisation has started. Apart from two little countries (Bahrain
Economy of Bahrain
According to the 2011 Index of Economic Freedom published by the Heritage Foundation and the Wall Street Journal, Bahrain has the freest economy in the Middle East and North Africa region and is tenth overall in the world...

 and the United Arab Emirates
Economy of the United Arab Emirates
The United Arab Emirates is a rapidly diversifying, highly developed economy, based on various socioeconomic indicators such as GDP per capita, energy consumption per capita, and the HDI....

), Arab states have not diversified their economies
Diversity (business)
The "business case for diversity" stems from the progression of the models of diversity within the workplace since the 1960's. The original model for diversity was situated around affirmative action drawing strength from the law and a need to comply with equal employment opportunity objectives...

, and no replacement for the upcoming end of oil reserves
Oil depletion
Oil depletion occurs in the second half of the production curve of an oil well, oil field, or the average of total world oil production. The Hubbert peak theory makes predictions of production rates based on prior discovery rates and anticipated production rates. Hubbert curves predict that the...

 is envisaged.

Industrialisation in Asia


Apart from Japan, where industrialisation began in the late 19th century, a different pattern of industrialisation followed in East Asia
East Asia
East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...

. One of the fastest rates of industrialisation occurred in the late 20th century across four countries known as the Asian tigers thanks to the existence of stable governments and well structured societies, strategic locations, heavy foreign investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...

s, a low cost skilled and motivated workforce
Workforce
The workforce is the labour pool in employment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic region like a city, country, state, etc. The term generally excludes the employers or management, and implies those involved in...

, a competitive exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...

, and low custom duties.

In the case of South Korea, the largest of the four Asian tigers, a very fast paced industrialisation took place as it quickly moved away from the manufacturing of value added goods in the 1950s and 60s into the more advanced steel, shipbuilding and automobile industry in the 1970s and 80s, focusing on the high-tech and service industry in the 1990s and 2000s. As a result, South Korea became a major economic power
G20 industrial nations
The Group of Twenty Finance Ministers and Central Bank Governors is a group of finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union, which is represented by the President of the European Council and by the European Central Bank...

.

This starting model was afterwards successfully copied in other larger Eastern and Southern Asian countries, including communist ones. The success of this phenomenon led to a huge wave of offshoring
Offshoring
Offshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ offshoring...

 – i.e., Western factories or Tertiary Sector corporations choosing to move their activities to countries where the workforce was less expensive and less collectively organised.

China and India, while roughly following this development pattern, made adaptations in line with their own histories and cultures, their major size and importance in the world, and the geo-political
Geopolitics
Geopolitics, from Greek Γη and Πολιτική in broad terms, is a theory that describes the relation between politics and territory whether on local or international scale....

 ambitions of their governments (etc.).

Currently, China's government is actively investing in expanding its own infrastructures and securing the required energy and raw materials supply channels, is supporting its exports by financing the United States balance payment deficit through the purchase of US treasury bonds, and is strengthening its military in order to endorse a major geopolitical role.

Meanwhile, India's government is investing in economic sectors such as bioengineering, nuclear technology
Nuclear technology
Nuclear technology is technology that involves the reactions of atomic nuclei. Among the notable nuclear technologies are nuclear power, nuclear medicine, and nuclear weapons...

, pharmaceutics
Pharmaceutics
Pharmaceutics is the discipline of pharmacy that deals with all facets of the process of turning a new chemical entity into a medication able to be safely and effectively used by patients in the community. Pharmaceutics is the science of dosage form design...

, informatics
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

, and technologically-oriented higher education
Higher education
Higher, post-secondary, tertiary, or third level education refers to the stage of learning that occurs at universities, academies, colleges, seminaries, and institutes of technology...

, exceeding its needs, with the goal of creating several specialisation poles able to conquer foreign markets.

Both China and India, particularly the Chinese, have also started to make significant investments in other developing countries, making them significant players in today's world economy.

Newly industrialised countries



In recent decades, a few countries in Latin America, Asia, and Africa, such as Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

, South Africa, Malaysia, Philippines, Mexico, Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....

, and El Salvador
El Salvador
El Salvador or simply Salvador is the smallest and the most densely populated country in Central America. The country's capital city and largest city is San Salvador; Santa Ana and San Miguel are also important cultural and commercial centers in the country and in all of Central America...

 have experienced substantial industrial growth, fueled by exporting to countries that have bigger economies: the United States, China, India and the EU. They are sometimes called newly industrialized countries.

Despite this trend
Market trends
A market trend is a putative tendency of a financial market to move in a particular direction over time. These trends are classified as secular for long time frames, primary for medium time frames, and secondary for short time frames...

 being artificially influenced by the oil price increases since 2003, the phenomenon is not entirely new nor totally speculative (for instance see: Maquiladora
Maquiladora
A maquiladora or maquila is a concept often referred to as an operation that involves manufacturing in a country that is not the client's and as such has an interesting duty or tariff treatment...

).

Japan and Russia both were successful in the fact that they imitated many other societies giving them flexibility. Yet they both had very little in common before the 19th century. Japan was isolated from the world with its ongoing traditions and forms of centralized government. Russia featured a more strong centralized government under the emperor. Both would soon to discover that westernisation and industrialism were expanding and their own ways would not hold up against the new changing world of industrialisation. In the late 19th century the force for them to being industrializing would become even more prevalent for the success of their nation in this new growing societies.

Urbanisation


The concentration of labour into factories has brought about the rise of large towns
Conurbation
A conurbation is a region comprising a number of cities, large towns, and other urban areas that, through population growth and physical expansion, have merged to form one continuous urban and industrially developed area...

 to serve and house the factory workers.

Exploitation



Workers have to leave their family in order to come to work in the towns and cities where the industries are found.

Change to family structure


The family structure changes with industrialisation. The sociologist Talcott Parsons
Talcott Parsons
Talcott Parsons was an American sociologist who served on the faculty of Harvard University from 1927 to 1973....

 noted that in pre-industrial societies there is an extended family
Extended family
The term extended family has several distinct meanings. In modern Western cultures dominated by nuclear family constructs, it has come to be used generically to refer to grandparents, uncles, aunts, and cousins, whether they live together within the same household or not. However, it may also refer...

 structure spanning many generations who probably remained in the same location for generations. In industrialised societies the nuclear family
Nuclear family
Nuclear family is a term used to define a family group consisting of a father and mother and their children. This is in contrast to the smaller single-parent family, and to the larger extended family. Nuclear families typically center on a married couple, but not always; the nuclear family may have...

, consisting of only of parents and their growing children, predominates. Families and children reaching adulthood are more mobile and tend to relocate to where jobs exist. Extended family bonds become more tenuous.

Current situation



China in 2010 became the worlds largest manufacturer, ending the United States run for over a century, the value of China manufacturing output in 2010 was $1.995 Trillion Dollars or 19.8% of the worldwide total, edging out the United States which accounted for 19.4% worth $1.952 Trillion Dollars.

Currently the "international development community" (World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

, OECD, many United Nations departments, and some other organisations) endorses development policies like water purification or primary education
Primary education
A primary school is an institution in which children receive the first stage of compulsory education known as primary or elementary education. Primary school is the preferred term in the United Kingdom and many Commonwealth Nations, and in most publications of the United Nations Educational,...

. The community does not recognise traditional industrialisation policies as being adequate to the Third World or beneficial in the longer term, with the perception that it could only create inefficient
Inefficiency
The term inefficiency has several meanings depending on the context in which its used:*Algorithmic inefficiency - refers to less than optimum computer programs that might exhibit one of more of the symptoms of:** slow execution...

 local industries unable to compete in the free-trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...

 dominated political order which it has erected.

The relationship between economic growth, employment and poverty reduction is complex. Higher productivity is argued to be leading to lower employment (see jobless recovery
Jobless recovery
A jobless recovery or jobless growth is an economic phenomon in which a macroeconomy experiences growth while maintaining or decreasing its level of employment...

). There are differences across sectors, whereby manufacturing is less able that the tertiary sector to accommodate both increased productivity and employment opportunities; over 40% of the world's employees are "working poor" whose incomes fail to keep themselves and their families above the $2 a day poverty line. There is also a phenomenon of deindustrialisation, such as in the former USSR countries' transition to market economies, and the agriculture sector often is the key sector in absorbing the resultant unemployment.

See also

  • Division of labour
    Division of labour
    Division of labour is the specialisation of cooperative labour in specific, circumscribed tasks and likeroles. Historically an increasingly complex division of labour is closely associated with the growth of total output and trade, the rise of capitalism, and of the complexity of industrialisation...

  • Deindustrialisation
  • Newly industrialising country
  • Urbanisation
  • Idea of Progress
    Idea of Progress
    In historiography, the Idea of Progress is the theory that advances in technology, science, and social organization inevitably produce an improvement in the human condition. That is, people can become happier in terms of quality of life through economic development , and the application of science...


Further reading

  • Hewitt, T., Johnson, H. and Wield, D. (Eds) (1992) industrialization and Development, Oxford University Press: Oxford.
  • Hobsbawm, Eric (1962): The Age of Revolution. Abacus.
  • Kiely, R (1998) industrialization and Development: A comparative analysis, UCL Press:London.
  • Pomeranz, Ken (2001)The Great Divergence: China, Europe and the Making of the Modern World Economy (Princeton Economic History of the Western World) by (Princeton University Press; New Ed edition, 2001)
  • Kemp, Tom (1993) Historical Patterns of Industrialization, Longman: London. ISBN 0-582-09547-6