Industrialization: A Comprehensive Overview PDF

MEKAELA ROMERO STEPHANIE OLOFERNES GROUP 6 INDUSTRIALIZATION DEFINING INDUSTRIALIZATION Industrialization is considered as the most important economic development in human history based on typical measurements such as income per capita or labor productivity. Industrialization is a complex process...

MEKAELA ROMERO STEPHANIE OLOFERNES GROUP 6 INDUSTRIALIZATION DEFINING INDUSTRIALIZATION Industrialization is considered as the most important economic development in human history based on typical measurements such as income per capita or labor productivity. Industrialization is a complex process by which a largely agrarian society becomes one that prioritizes the production of goods and services. DEFINING INDUSTRIALIZATION The economic development of underdeveloped countries like China where policies during the later part of the 20th century resulted in the country shifting from an economy reliant on subsistence farming to becoming a dominant force in global manufacturing. Developed countries were able to escape the cycle of poverty by prioritizing industrialization over agriculture or extraction of natural resources. DEFINING INDUSTRIALIZATION According to Paul Romer, today’s developing nations are poor because the citizens do not have access to the ideas that are used in industrialized nations to generate economic value. He believes that there are two (2) components between technology gap of rich and poor nations: Physical object gap- such as factories, roads, and modern machinery. Idea gap- knowledge about marketing, distribution, inventory control, transaction processing, and worker motivation. EXAMPLES OF INDUSTRIALIZATION 01 MINING 02 TRANSPORTATION 03 RETAILING The first working steam engine was During the 19th century, there Before the advent of devised to help remove flood water was a significant surge in contactless payments and from coal and tin mines, where it innovative transportation self-service checkouts, retail often disrupted production. The methods for moving goods to innovations were tailored to steam-powered locomotive was first and from marketplaces. Some appeal to 19th-century used to transport ore from mines. of these innovations included: shoppers. Dynamite was patented in 1867 and was first used to blow up rocks that The Steam Locomotive The Department Store obstructed mining activities. The Steamboat The Sears Catalog WHY IT’S IMPORTANT Industrialization plays a pivotal role in driving the economic 05 ECONOMIC GROWTH developmentCULTURE of a country02 or region. The process has improved productivity through manufacturing, transportation, finance, and communication industries which expanded over time to support the new production capacity and allow mass production.  01 MANUFACTURING AND ECONOMIC DEVELOPMENT Manufacturing increases productivity, creates jobs, and promotes technological innovation. It also leads to the development of backward and forward linkages, which foster further industrial growth. These linkages help create SIGNIFICANT a more integrated economy, fostering economic resilience and IMPACT OF expansion. INDUSTRIALIZATION  02 URBANIZATION AND INDUSTRIAL CLUSTERS Urban areas provide various economies, where businesses benefit from being close to each other, sharing infrastructure, knowledge, and specialized labor. Industrial Clusters are defined as geographic concentrations of interconnected businesses, suppliers, and institutions that are specialized in the same industry. This can lead to the SIGNIFICANT growth of cities and improved access to services like healthcare, education, and IMPACT OF utilities. INDUSTRIALIZATION  03 TECHNOLOGY AND INNOVATION Technological advancements drive industries to adopt more efficient production processes, leading to economic growth. Technology not only enhances industrial efficiency but also facilitates the production of higher-value goods, enabling SIGNIFICANT developing countries to move up the value chain and compete in IMPACT OF global markets. INDUSTRIALIZATION  04 INFRASTRUCTURE DEVELOPMENT Adequate infrastructure, including transportation networks (roads, railways, ports), energy supply, and communication systems, is critical for supporting industrial activities. Without sufficient infrastructure, industrial growth will be stunted, as firms rely on these systems for the transportation of goods, access to SIGNIFICANT markets, and efficient production processes. Infrastructure development IMPACT OF often requires large, upfront investments. INDUSTRIALIZATION  05 ECONOMIC GROWTH Industrial sectors typically provide more stable and higher-paying jobs compared to agriculture, thus reducing unemployment rates. As industrialization expands, it creates a demand for various services such as banking, transportation, and communications, leading to an interconnected economy. In addition, industrial jobs help improve the reduction of poverty and income inequality SIGNIFICANT especially in developing regions which leads to the rise of the middle class and drives IMPACT OF domestic demand for goods and services. INDUSTRIALIZATION  06 ECONOMIC GLOBALIZATION This integration is propelled by the cross-border flow of goods, services, capital, technology, and labor. Industrialization, a pivotal catalyst for globalization, has historically shaped and facilitated the expansion of global trade, the promotion of international SIGNIFICANT investment, and the amalgamation of diverse economies into a more IMPACT OF cohesive global system. INDUSTRIALIZATION ECONOMIC These advancements result in a significant boost in productivity levels. Consequently, this surge The process of in productivity leads to industrialization involves economic expansion by facilitating the creation of a the implementation of greater variety of goods and cutting-edge technologies, services at reduced production the streamlining of costs. production methods, and the adoption of enhanced ENVIRONMENTAL IMPACT management practices. CHALLENGES ECONOMIC This can lead to disparities between rural and urban areas or across different If industrial social classes, widening development is the income gap and concentrated in potentially leading to certain regions or social unrest sectors, it may exacerbate economic inequalities.. INCOME DISPARITIES CHALLENGES ECONOMIC This can cause short- term social disruptions, Rapid including unemployment industrialization can and loss of livelihoods for lead to the those who are unable to transition to the displacement of industrial workforce. workers from traditional SOCIAL DISPLACEMENT agricultural sectors. CHALLENGES ECONOMIC Rapid urbanization and industrial growth may lead to the loss of cultural Industrialization heritage and values, as can also have an well as social dislocation impact on local and breakdown of cultures and community structures. traditional ways of CULTURAL IMPACT life. CHALLENGES ECONOMIC This can lead to issues such as traffic congestion, The rapid growth of inadequate housing, industrial hubs and and increased demand urban centers can for healthcare and place strain on education. existing infrastructure and STRAIN OF public services. INFRASTRUCTURE AND PUBLIC SERVICES CHALLENGES  REPUBLIC ACT NO. 7368, APRIL 08, 1992 An act to launch and promote countrywide industrialization through the establishment and manufacturing, processing, and related industries by providing financial assistance to enterprises in every town and city not exceeding P30 million and P40 million, respectively, authoring the appropriation therefor in the amount on P1 billion per year for the next five years as initial capital, and for other purposes. DEVELOPMEN TAL STRATEGIES THE COMPREHENSIVE NATIONAL INDUSTRY STRATEGY (CNIS) Aims to connect and merge manufacturing, agriculture, and services, as well as tackle supply chain deficiencies and enhance industry involvement in global value chains. Key initiatives include workforce development, support for small and medium enterprises, emphasis on innovation and research, promotion of eco-friendly industries, vigorous marketing efforts, investments in infrastructure to mitigate high power, logistics, and shipping costs, and simplification and automation of governmental processes and regulations impacting business activities. DEVELOPMEN TAL STRATEGIES  EASE OF DOING BUSINESS (EOBD) The government has made efforts to enhance the Ease of Doing Business (EOBD) by simplifying regulatory procedures. For instance, the Department of Trade and Industry (DTI) has reduced the business registration processes through the Nationwide Streamlining of Business Permits and Licensing Systems (BPLS). In 2015, the process required 16 steps and 29 days, but by 2016, it involved only 6 steps and 8 days. Additionally, the DTI has introduced the Inter-Agency Business Process Interoperability (IABPI) to streamline and fully automate export and import procedures on the regional level. DEVELOPMEN TAL STRATEGIES  INDUSTRIAL POLICY The DTI-IDG has been concentrating on developing a fresh industrial strategy since 2012, intending to generate more high- quality jobs and achieve sustainable and inclusive growth. This new policy aims to help the country take full advantage of trade and investment opportunities within the ASEAN Economic Community (AEC) and tackle the associated challenges. The IDG's objective through this strategy is to create a conducive environment and bolster Philippine industries to enhance their global competitiveness. DEVELOPMEN TAL STRATEGIES  THE MANUFACTURING RESURGENCE PROGRAM (MRP) The Department of Trade and Industry is carrying out the Manufacturing Resurgence Program (MRP) as part of the Philippine government's efforts to achieve inclusive growth. The program's objectives include revitalizing current industries, bolstering new ones, and sustaining the competitiveness of industries with a comparative advantage. Additionally, it aims to develop agriculture-based manufacturing industries to create jobs and support smallholder farmers and agricultural cooperatives. DEVELOPMEN TAL STRATEGIES  THE BUILD! BUILD! BUILD! (BBB) PROGRAM is the main program of the Duterte administration aimed at bringing about a "Golden Age of Infrastructure" in the Philippines. More infrastructure has long been identified as the main obstacle to economic development in the Philippines. The BBB Program aims to increase public infrastructure spending from an average of 2.9 percent of the gross domestic product (GDP) during the Aquino administration to about 7.3 percent by the end of the Duterte administration. This required an estimated P8 trillion to P9 trillion from 2016 to 2022 to address the significant infrastructure backlog in the country. Governments and organizations can implement strategies and policies to promote economic growth, reduce poverty, and achieve sustainable development. DEVELOPMEN TAL STRATEGIES