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INDUSTRIALIZATION

The process in which a society or country (or world) transforms itself

from a primarily agricultural society into one based on the manufacturing

of goods and services.

Individual manual labor is often replaced by mechanized mass production

and craftsmen are replaced by assembly lines.

SIGNIFICANCE OF INDUSTRIALIZATION:

The use of technological innovation to solve problems as opposed to

superstition or dependency upon conditions outside human control such as

the weather.

More efficient division of labor and economic growth.

SIGNIFICANCE OF INDUSTRIALIZATION

o The industrial plants have led to more precise and accurate products

while still having mass production.

o American cities with industrial plants have become centralized and have

attracted more population from all over the country and possibly even

from other countries through the transaction of foreign companies

building plants in America.

o Industrialization has become the center piece of America's economic

development, and it has labeled America as being a land of opportunities.

STAGESOF

INDUSTRIALIZATION

Rostow's Stages of Growth

Traditional society

Preconditions for take-off

Take-off

Drive to maturity

Age of High mass consumption

Traditional society

characterized by subsistence agriculture or hunting and gathering; almost

wholly a "primary" sector economy

limited technology

A static or 'rigid' society: lack of class or individual economic mobility, with

stability prioritized and change seen negatively

Pre-conditions to "take-off"

external demand for raw materials initiates economic change;

development of more productive, commercial agriculture and cash crops not

consumed by producers and/or largely exported

widespread and enhanced investment in changes to the physical

environment to expand production (i.e. irrigation, canals, ports)

increasing spread of technology and advances in existing technologies

Take off

Urbanization increases, Industrialization proceeds, Technological break

through occurs

the "secondary" (goods-producing) sector expands and ratio of secondary vs.

primary sectors in the economy shifts quickly towards secondary

textiles and apparel are usually the first "take-off" industry, as happened in

Great Britain's classic "Industrial Revolution"

Drive to maturity

diversification of the industrial base; multiple industries expand and new

ones take root quickly

manufacturing shifts from investment-driven (capital goods) towards

consumer durables and domestic consumption

rapid development of transportation infrastructure

large-scale investment in social infrastructure (schools, universities,

hospitals, etc

Age of mass consumption

the industrial base dominates the economy; the primary sector is of

greatly diminished weight in economy and society

widespread and normative consumption of high-value consumer goods

(e.g. automobiles)

consumers typically (if not universally), have disposable income, beyond

all basic needs, for additional goods

• Colin Clark's sector model of an economy undergoing technological change. In later stages, the Quaternary sector of the economy grows.

List of countries according

to industrialization

Top 10: First World Countries in terms of their Gross National Income

The GNI based on purchasing-power-parity (PPP) per capita in int'l Dollars.

# Country Region GNI per

Capita

1 Luxembourg Western Europe 66 821

2 Norway Northern Europe 41 941

3 United States North America 41 557

4 Ireland Northern Europe 40 003

5 Bermuda (overseas territory of the UK) North America *36 000

6 Iceland Northern Europe 35 686

7 Denmark Northern Europe 34 718

8 San Marino Southern Europe *34 600

9 Canada North America 34 444

10 Switzerland Western Europe 33 168

Sources: IMF -- International Monetary Fund, World Economic Outlook Database, April 2005

(*) CIA The World Factbook (covers countries not mentioned by the IMF, information may refer to 2004 or earlier.)

Slightly different figures you will find at The World Bank Group

Third World Countries in Terms of their Gross National Income (GNI)

Countries with the least gross national income based on purchasing-power-parity (PPP) per capita in int'l Dollars.

Simplified the GNI PPP is the average annual income earned by a citizen of a country.

That means for example, a citizen of Malawi can spend $ 1.6 a day to make a living,

a citizen of Eritrea $ 2.5, the average US citizen spends $ 114 daily.

Below countries with an average yearly income per capita and year under $ 1000,

poorest nations first.

Rank Country

Region

GNI per capita

1 Timor-Leste South-East Asia *400

2 Malawi Eastern Africa 596

3 Somalia Eastern Africa *600

4 Democratic Republic of the Congo Middle Africa 675

5 Tanzania Eastern Africa 720

6 Yemen Middle East 745

7 Burundi Eastern Africa 753

8 Afghanistan Central Asia *800

9 Guinea-Bissau Western Africa 856

10 Ethiopia Eastern Africa 859

11 Niger Western Africa 896

12 Liberia Western Africa *900

13 Sierra Leone Western Africa 901

14 Madagascar Eastern Africa 911

15 Zambia Eastern Africa 911

16 Eritrea Eastern Africa 917

Sources: IMF -- International Monetary Fund, World Economic Outlook Database, April 2005

(*) CIA The World Factbook (covers countries not mentioned by the IMF, information may refer to 2004 or earlier.)

Slightly different figures you will find at The World Bank Group

PHILIPPINE INDUSTRIALIZATION SITUATIONS AND ISSUES

Industrial Production in Philippines decreased 1.8

percent in January of 2015 over the same month in the

previous year. Industrial Production in Philippines

averaged 9.22 percent from 1986 until 2014, reaching

an all time high of 68.60 percent in April of 1988 and a

record low of -26.60 percent in January of 2009.

Industrial Production in Philippines is reported by the

National Statistics Office of Philippines.

Philippines is the 2nd fastest

growing country in Asia

The Gross Domestic Product (GDP) in Philippines

expanded 6.90 percent in the fourth quarter of 2014

over the same quarter of the previous year. GDP Annual

Growth Rate in Philippines averaged 5.09 percent from

2001 until 2014, reaching an all time high of 8.90

percent in the second quarter of 2010 and a record low

of 0.50 percent in the third quarter of 2009. GDP Annual

Growth Rate in Philippines is reported by the Philippine

National Statistical Coordination Board.