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11 views3 pages

Topic 9

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ojooluwaseun924
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TOPIC 9

INDUSTRIALIZATION
Refs. (1) Hoogoelt pp.79-85
(2) John Dickerson, “ Industrialization in third world “ in Allan mountjoy,
The third world: problems and perspectives. PP 93-101
(3). Howard Bowen – Johes “ Technology and the Third world” in mountjoy
(4) see industrialization in encyclopedia

Industrialization strands as one of the most desired goals of developing nations.


Not only does it represent the successful combination of economic and
technological processes, it is also the most important avenue through which the
advanced countries arrived at their present stage. Thus, it is no surprise to find
most development plans or theories aimed explicitly or implicitly at
industrialization ( industrialization is the key component of development planning)
Industrialization has been defined as “ the system of production that has arisen
from the steady development, study and use of scientific knowledge. It is based on
Division of labour and specialization and uses mechanical, chemical and power-
driven as well as intellectual aids in production. The primary object of this method
of organizing economic life has been to reduces the real cost per unit of producing
goods and services”
Implicit in this definition are some reasons for industrialization in the third world.
Third world countries see industrialization as the sure way of making goods and
services available to their inhabitants at relatively lower costs. Thus, it is one
strategy towards raising the standard of living of the society. Furthermore,
industrialization is regarded as one more step towards self sufficiency since it
means theoretically that it would:
1) Cut down on the needs to import finished goods.
2) Alter the undesirable situation of the relying on exports of primary products
3) It may, indeed result ultimately in the exportation of finished goods, thus helping
foreign exchange and balance of payment conditions.
4) In addition to self sufficiency, it is deemed important in terms of providing jobs for
the populace especially those that are not involved in agriculture.
5) Also involved in industrialization is the issue of political power. Industrialization
goes hand in hand with economic power and economic power is a close kin of
political power.
6) Another advantage of industrialization is that given proper intersectorial linkages,
it is supposed to be able to stimulate and compliment growth in various areas of the
economy as well as articulate the population of a country by creating a well- fed
wage earning sector capable of absorbing goods and services in the society
7) Finally, there is a certain prestige inherent in industrialization. It is regarded as a
“mark of arrival “ ; with the industrialized nation assuming a pride of place in the
international communities.

Bye and large, the share of third world in manufacturing is minimal in 1955, it was
9% and 1977, it was 12%. Industrial export from the third world is between 0.5%
and 2% in 1979
Given the historical antecedent of many third world country, industrial activity has
been how and restricted to extractive industry or light manufacturing industry.
Even in post- independence times, industrial patterns and emphasis are varied
across societies of the third world. Some countries have devoted early attentions on
heavy industries e.g indian iron and steel. Others have began with consumer goods
( e.g. emphasized production of goods for exports e.g Taiwan, Korea, Hong Kong
etc.
Of course, the pattern of industrialization in third world countries can hardly be
divorced from external forces who were present as colonial overloads and
multinational corporations before and after independence respectively. Indeed
regardless of the pattern of industrial activities, many Third World countries are
characterized by the presence of import substituting appendages of foreign owned
bodies. These also tend to be assembly type industries. Even where the nation -
state attempts to substitute for imports by selling up its own industries and
protective effects made, there have been failure to penetrate foreign markets as
well as paradoxical increase in export of primary products so as to earn money to
buy much needed spare parts, machinery, technical know – how etc. Necessary for
these infant industries.
Industrial development in Third World countries. Usually occur within the frame -
work of development planning. Thus priority are determined and industries are
licensed on basis of the objective of the pertinent plan for the period.
The process of industrialization faces a number of problems in the Third World
countries. There is a problem of presence of multi – national corporation.
There is also the question of weak and erratic infrastructure – water, electricity,
road etc. The issue of appropriate technology has also stimulated debate especially
in view of the fact that modern technology was developed in the socio-economic
and geographical context of the western countries.
Critics have also promoted to the gross spatial imbalance in the location of
industries. There are also problems of conquering markets. Since third world is
inadequate in terms of generating necessary purchasing power for further growth.
There is the problem of competition with older and better established industries
both at home and abroad who capable of driving new- comers out of market and
who have a longer period to perfect their products.
PROSPECTS OF INDUSTRIALIZATION
1. There is a trend towards processing of raw materials for exports
2. There are regional groupings to enhance production in the various countries e.g.
ECOWAS, EACM etc.
3. Clamour for an international economic order. An example is the cantoun
conference where the third world countries went to appeal to the first and second
world to bridge the gap between them and the third world.

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