Definition of industrialization
What do you understand by industrialization: Industrialization can be defined as the system by which an economy which hitherto produced basic agricultural goods, now manufactures those same goods with the use of machines instead of manual labour and assembly plants instead of skilled artisans.
Discuss five roles of industrialization in an economy.
- Industrialization of the individual sector contributes greatly to the economic development of nations in the following ways:
- Increase In Gross National Product [GNP]: The industrial sector, through its operations like payments of taxes, increase the earnings acquirable to the nation.
- Employment Opportunities: Industries provide employment [job] for many people.
- Technological Development: Industrialization can also lead to the development of technology in the country.
- Diversification Of The Economy: The industrial sector helps different countries to prevent over-dependence on only one product like Nigeria’s present over-dependence on crude oil, if Nigeria can invest in the industrial sector, her economy will in time be diversified.
- Improving Standard of Living; Industrialization also leads to the improvement of raising the improvement of raising the people’s standard of living through production of goods that are cheap and affordable.
- Funding of Education And Research: The industrial sector provides capital for the funding of education and research work in all the nations, e.g the Education Tax Fund [ETF] in Nigeria.
- Conservation of Foreign Exchange: Industrialisation has led to the conservation of foreign exchange which would have been used for importing goods now produced locally.
- Stimulation of Other Sector: The industrial sector stimulates the growyh of other sectors like agriculture, mining and lumbering.
- Control of Inflation Due to Mass Production: With modern technology, products like cars and machinery can be mass produced. This can help to reduce inflation.
- Training And Development of Skilled Manpower: Many people are trained in different technical areas in order to acquire special skills to manage different aspects of machines in an industry.
