Industrialization and Economic Development

Industrialization is the process of manufacturing consumer goods and central goods and of creating social overhead capital in order to outfit goods and services to both nation and businesses. As selfsame industrialization plays a superior role in the economic development of LDCs ( Less Developed Country ).

Industrialization is a pre - requisite for economic development as the history of brand-new countries shows. For development, the share of the industrial sector should rise and that of the agricultural sector decline. This is unique possible through a policy of deliberate industrialization. As a upshot, the benefits of industrialization will " trickle down " to the other sectors of the economy in the model of the development of agricultural and service sectors leading to the rise in employment, turnout and income.

In overpopulated LDCs there is overcrowding on the land, holdings are subdivided and fragmented, and farmers practice usual agriculture. For rapid development, LDC ' s cannot minister to wait for changes in farm practices to takings joint. Forasmuch as. LDCs must make active with industrial development to supply fertilizers, farm machinery and other inputs so as to increase efficiency on the farm. Again, industrialization is vital in order to sustain employment to the underemployed and unemployed in the agricultural sector. In overpopulated LDCs, large number of people are underemployed or disguised unemployed whose marginal product is zero or negligible. They can be transferred from agriculture to industry with little or no loss in agricultural output. Since the marginal product of labor is higher in industry than in agriculture, transferring such workers to the industrial sector will raise aggregate output. Thus overpopulated LDCs have no choice but to industrialize.

Industrialization is also essential in LDCs because it brings increasing returns and economies of scale while agriculture does not. " These economies reside in training, stimulating communication, interaction within industry ( inter - sectoral linkages ), demonstration effects in production and consumption, and so on. Rural society tends to be stagnant, urban society dynamic. Since industrialization brings urbanization, it is superior to the stimulation of agriculture. "

Further the LDCs need industrialization to free themselves from the adverse effects of fluctuations in the prices of primary products and deterioration in their terms of trade. Such countries mainly export primary products and import manufactured goods. The prices of primary products have been falling or remaining stable due to protectionist policies of advanced countries, while the prices of manufactures have been rising. This has led to deterioration in the terms of trade of the LDCs. For economic development, such countries must shake off their dependence on primary product. They should adopt import substituting and export - oriented industrialization.

The case for industrialization in the LDCs also rests on the psychological boost which such a polio provides in their citizens in marching towards modernization. Industrialization is viewed as a mater of pride by every LDC, for it implies using the new technology, new and diverse skills, larger enterprises and more large cities. Moreover incomes rise rapidly in the industrial sector which are saved and invested for creating more demand for goods and services. Since industrialization is followed by urbanization, employment opportunities and incomes increase.

People enjoy the fruits of modernization in the form of a variety of goods and services available in urban centers due to industrialization. These also affect the rural sector through the demonstration effect. Thus industrialization tends to raise the living standards and promotes social welfare.

Finally, industrialization brings social transformation, social equality, more equitable distribution of income and balanced regional development in the process of economic development. The policy of industrialization followed by the LDCs in the early phase of their development has not brought the expected economic and social benefits. It has failed to reduce in equalities of income and wealth, unemployment, and regional imbalances. Even the pace of development has been uneven with the neglect of the growth of other sectors.

Moreover, industrialization has created such serious problems as: ( 1 ) rural stagnation, ( 2 ) the mushrooming growth of the urban underclass, ( 3 ) education poorly geared to the development needs, ( 4 ) organizational power failures in government bureaucracies, and ( 5 ) excessively high rates of growth of the population and the labor force. Therefore, economists have veered round to the view that there is no basis for the argument that development should be launched with industrialization. Rather, the process of development should be interwoven with the harmonious growth of agriculture and industry. In fact, in most LDCs successful industrialization has been supported by sustained agricultural development.

Tackling Food Security, Economic Development, and Neighborhood Vitality in One Fell Swoop

In the midst of " The Great Slump " and muddling through a sluggish recovery, cities across the U. S. are tasked with developing innovational solutions to the coming up societal side effects - side effects like joblessness, vacant / waste properties, and hunger ( to sign a few ).

The Bureau of Labor Statistics ' May 2012 report shows a national unemployment standard of 8. 2 % with the highest rates among virginity, Hispanics, and African Americans. In November 2011, the Government Burden Office ( GAO ) reported a nationwide increase in vacant properties of more than 51 % between 2000 and 2010. And according to the February 2012 report published by the Food Research and Plan Cynosure ( FRAC ), food hardship for people across the nation is the highest in years - particularly in metropolitan areas across the U. S. These grim economic facts are unreal straight more firm by the reality of current global economic instability, making the interval " Think Globally, Act Locally " all the more relevant.

City governments ( and the residents who elect them ) are in a unique position to either praise or discourage energetic local economies through the policies, codes, and ordinances they write and pass. As the national dialogue about local food and local economies continues to evolve, city governments wield significant power - particularly as it relates to land - use policy.

Currently, in most cities across the nation, city ordinances discourage or prohibit agriculture as a recognized land use. There ' s never been a better time, given our current economic environment and food hardship situation to reevaluate these policies. By rewriting or amending land uses to include urban agriculture, cities open the door for an increase in food production & availability, economic development & jobs, and improved neighborhood beautification & property values as vacant lots are transformed into beautiful gardens.

A handful of cities recognize the multi - faceted benefits of urban agriculture and are leading the way in developing land use plans that reflect these priorities. Since 2005, more than 16 major cities across the U. S. have included urban agriculture in their land use plans - some more aggressively than others. In most cases cities are beginning to formally recognize the value of community gardens and tailgate markets to their city ' s vitality. And though these are steps in the right direction, more aggressive action is needed to truly realize the economic and social potential urban agriculture has to offer.

One city - Cleveland, OH - is taking the lead in breaking the mold and aggressively promoting urban agriculture through their land use plan. In 2007, Cleveland created the Urban Garden District as a zoning classification - restricting use of land in this zoning district to urban agriculture activities. As more and more cities move to recognize the importance of agriculture and agriculture enterprise within the city limits, the national dialogue will continue to broaden and deepen - and rightly so.

It ' s important to keep in mind that not all zoning is good zoning when it comes to urban agriculture. In some cases, the restrictions that city planners and politicians impose restrict size, structures and activities in such a profound way that the policy essentially prevents what it is trying to achieve. As with any policy that affects the residents of a particular area and business of a particular type, those residents and businesses should be consulted as the policy is developed.

As cities continue to evolve and respond to the needs and pressures of an unstable global economy, a stagnant national economy, and increased uncertainty in the arenas of food security and environmental sustainability, they are challenged to think creatively and solve multiple problems simultaneously. By changing land use policy in such a way that encourages increased food production, additional agriculture jobs, and neighborhood beautification, cities will be ahead of the curve.

References:

U. S. Government Accountability Office. ( 2011, November ). VACANT PROPERTIES - Growing Number Increases Communities ' Costs and Challenges. ( Publication No. GAO - 12 - 34 ).

Center For Disease Control. ( 2006 ). Land Use Planning for Public Health: The Role of Local Boards of Health in Community Design and Development.

Food Research and Action Center. ( 2012, February ). Food Hardship In America 2011. Retrieved from FRAC data and publications database.

U. S. Dept. of Labor. ( 2011, June ). The Employment Situation May 2012. ( Press Release ). Retrieved from Bureau of Labor Statistics.