IndustrializationArillo

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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.

PRIMARY INDUSTRIES (Extractive)

An industry involved in the extraction and

collection of natural resources, such as

mining, as well as by activities like farming

and fishing.

It is usually most important in less developed

countries, and typically less important in

industrial countries.

SECONDARY INDUSTRY

(MANUFACTURING)

Takes the raw materials supplied by primary industries

and processes them into consumer goods.

Further processes goods that other secondary industries

have transformed into products.

Builds capital goods used to manufacture consumer and

non consumer goods

It generally takes the output of the primary sector and

manufactures finished goods or where they are suitable

for use by other businesses, for export, or sale to

domestic consumers.

Examples of secondary industries include heavy

manufacturing, light manufacturing, food processing, oil

refining and energy production.

TERTIARY INDUSTRIES (SERVICES)

This sector provides services to the general

population and to businesses.

Services give value to people but are not physical

goods.

The basic characteristic of this sector is the

production of services instead of end products.

Services (also known as "intangible goods")

In most developed and developing countries, a

growing proportion of workers are devoted to the

tertiary sector. In the U.S., more than 80% of the

labor force are tertiary workers.

o Examples of services are banks and public transport. It

sometimes classified as direct services (to people), e.g.

the police, hairdressing, etc. and commercial services

(to business), e.g. business insurance, business post,

etc.

o Sales, repair services, banking, and insurance are all

part of the tertiary industry.

QUATERNARY INDUSTRIES

The portion of an economy that is based on

knowledge applicable to some business

activity that usually involves the provision of

services.

It is the use of modern technology in

research and development to train and

provide information to other industries.

It is based on knowledge and skill.

It is sometimes included with the tertiary

sector, as they are both service sectors.

The quaternary sector include:

information gathering, distribution and

technology; research and development;

vocational education; business consulting;

and strategic financial services.

• 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.