Industrialization

What Is Industrialization?

• Industrialization is the process by which an economy transitions from a primarily agricultural to a manufacturing-based economy.
• Individual manual labor is frequently replaced by mechanized mass production, and artisans by assembly lines.

Understanding Industrialization

• The European Industrial Revolution of the late 18th and early 19th centuries is most commonly associated with industrialization.
• Between the 1880s , the United States experienced industrialization as well.
• The outbreak of World War II also resulted in a significant amount of industrialization, which resulted in the growth and development of large urban centers and suburbs.
• Industrialization is a byproduct of capitalism, and its effects on society are still being studied; however, it has resulted in a lower birth rate and a higher average income.

Industrial Revolution

• The Industrial Revolution began in the late 18th century in Britain.
• Prior to the proliferation of industrial manufacturing facilities, most fabrication and processing was done by hand in people’s homes.
• The steam engine was a pivotal invention because it enabled the development of a wide range of machinery.
• The expansion of the metals and textile industries enabled mass production of basic personal and commercial goods.
• As manufacturing activities expanded, so did the transportation, finance, and communications industries to support the new manufacturing capacities.
• For some, the Industrial Revolution resulted in unprecedented increases in wealth and financial well-being.
• It also resulted in increased labour specialisation and the ability of cities to support larger populations, resulting in a rapid demographic shift.
• People left rural areas in droves in search of new opportunities in burgeoning industries.
• The revolution quickly spread beyond the United Kingdom, with manufacturing centres springing up across continental Europe and the United States.

Benefits/Advantages of Industrialization

Raising Income: 

• The first and most important role is that industrial development provides a secure foundation for rapid income growth.
• The empirical evidence suggests a close relationship between high income and industrial development. The GNP per capita income in the industrially developed countries, for example, is very high, at around $ 28,000.
• In contrast, it is very low in industrially backward countries, hovering around $400.

Changing the Structure of Economy:

• Underdeveloped countries require structural change through industrialization in order to develop their economies.
• History shows that as an economy develops, the share of the industrial sector increases while the agricultural sector decreases.
• This can only be accomplished through industrialization.

Meeting High-Income Demands:

• People’s demands are typically limited to industrial products.
• After meeting basic food needs, people’s income is primarily spent on manufactured goods.
• This means that the income-elasticity of demand for manufactured goods is high while it is low for agricultural products.
• To meet these demands and boost economic output, developing countries must industrialise.

Overcoming Deterioration in the Terms of Trade:

• Countries such as India require industrialization to be free of the negative effects of fluctuations in primary product prices.
• These countries primarily export raw materials and import manufactured goods.
• Primary product prices have been falling, while manufactured product prices have been rising.
• Such countries must break free from their reliance on primary products in order to develop economically.
• Import substitution and export-oriented industrialization should be implemented.

Absorbing Surplus Labor (Employment Generation):

• Underdeveloped countries, such as India, have a surplus of labor and a rapidly growing population.
• To absorb all of the excess labor, the country must rapidly industrialise.
• Only the establishment of industries can generate employment opportunities at a rapid pace.

Bringing Technological Progress:

• Research and Development is linked to the industrialization process.
• The development of industries producing capital goods, such as machines and equipment, enables a country to produce a wide range of goods in large quantities and at low cost, resulting in technological progress and a shift in people’s attitudes.
• As a result, an industrial civilization or environment for rapid progress is created, which is required for any healthy economy.

Some other benefits are

• Gainful Employment Opportunities
• Development of Agriculture Sector
• Useful for Foreign Trade
• Higher Standard of living
• Useful for Defense of country

Disadvantages of Industrialization

It also has some bad effects that are following;

• The immediate consequence is the gradual depletion of many natural resources, as well as pollution of land, water, and air.
• The increase in vehicular traffic, the launch of space ships and rockets by competing nations, and the continuous operation of machines in factories have all contributed to noise pollution, dust, and smoke.
• Human health and happiness have suffered as a result of the general filthy and unhealthy conditions in and around industrial sites. Diseases that were previously unheard of are now spreading far and wide.
• There have been reports of children working in factories.
• The rich’s exploitation of the poor has increased crime, isolation, and a sense of loneliness.
• The gradual displacement of labour in industries is eventually leading to job loss.
• The growth of an artificial, mechanical, and materialistic civilization brought about by industrialization has resulted in a steady decline in man’s spiritual values and well-being.
• Millions of people appear to be dominated and influenced by capitalistic ethics and a desire for more and more money. The severe uncertainties in the money market can sometimes lead to misfortunes for ordinary people.
• Inflation sets in, the value of money falls, and the poor working class becomes even poorer. Strikes, dharnas, gheraos, and bandhs, followed by lockouts, cause hardship and unrest. Their impact on society manifests itself in a variety of ways.
• Large-scale heavy industries cause a sharp drop in the number of cottage industries and their eventual extinction. Regional and local artisans, as well as workers in various trades and professions, suffer greatly.