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What Is Industrialization?


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    Highlights

  • Industrialization shifts economies from agriculture to mechanized manufacturing, leading to higher incomes and better living standards
  • The Industrial Revolution in Europe and the US marked the beginning of widespread industrialization in the 18th and 19th centuries
  • Strategies like export-led growth have generally outperformed import-substituting industrialization in fostering economic success
  • Industrialization impacts society by creating jobs, urban migration, and a growing middle class, but also leads to labor challenges and the rise of unions
Table of Contents

What Is Industrialization?

Let me explain industrialization directly: it's the process where a nation or region moves its economy from relying on agriculture to focusing on manufacturing. You see, mechanized mass production is key to this change.

On the positive side, it brings economic growth, a better division of labor, and a surge in technological advancements.

Key Takeaways

  • Industrialization moves away from agricultural or resource-based economies toward mechanized manufacturing.
  • It's often linked to higher average incomes and improved living standards.
  • It started in Europe and North America in the 18th and 19th centuries, then spread elsewhere.
  • Various strategies for industrialization have been tried, with different success rates.

Understanding Industrialization

You should know that industrialization gets driven by things like government policies, inventions that save labor, entrepreneurial drive, and demand for goods and services. It deeply affects populations, sparking mass migration from farms to cities for jobs.

Take China as a prime recent example: late 20th-century policy shifts turned it from subsistence farming into a global manufacturing giant.

The Industrial Revolution

In the West, we associate industrialization most with the Industrial Revolution in Europe starting late 18th century, and then in the US through the 19th century.

Europe saw a boom in local manufacturing for export, fueled by a growing consumer base. Britain led with innovations like steam-powered machines.

It spread to the US, where laissez-faire capitalism thrived. Inventions like the cotton mill and steam power created mill towns such as Lowell, MA, and Pawtucket, RI.

Later Periods of Industrialization

World War II ramped up demand for manufactured goods, building production capacity. Post-war prosperity kept things going strong and spurred more growth.

Innovation, specialization, and wealth creation both caused and resulted from industrialization then.

In the late 20th century, rapid industrialization hit Asia. The Asian Tigers—Hong Kong, South Korea, Taiwan, and Singapore—grew through manufacturing for global markets.

China had its own industrial revolution after shifting from strict communism.

Effects of Industrialization

19th-century innovations enabled mass production of goods. As manufacturing expanded, so did transportation, finance, and communications to support it.

This led to more labor specialization and bigger cities with larger populations, driving a demographic shift. People flocked from rural areas to industrial jobs.

The Industrial Revolution created huge wealth for some and built a larger middle class as consumer demand grew and businesses boomed to meet it.

Modes of Industrialization

Different approaches to industrialization have been used over time, with mixed results.

In Europe and the US, it started under mercantilist and protectionist policies that nurtured early industry, later shifting to free-market approaches that boosted foreign trade.

After World War II, Latin America and Africa tried import-substituting industrialization with trade barriers, subsidies, or nationalization.

Around the same time, parts of Europe and East Asia went for export-led growth, focusing on foreign trade and keeping currencies weak to attract buyers. Overall, export-led growth has done better than import substitution.

Socialist Industrialization

20th-century socialist nations pushed centrally planned industrialization, like the Soviet Union's five-year plans and China's Great Leap Forward.

These shifted economies toward industry and increased output, but came with harsh repression, poor living conditions, and even starvation.

Examples of Industrialization

Industrialization relies on growth and innovation in at least four key industries.

Manufacturing

It all started with machines that boosted goods production. Eli Whitney's 1794 cotton gin, whether hand-cranked or steam-powered, sped up separating cotton from seeds for weaving.

The spinning jenny multiplied spindles a spinner could handle for cotton or wool. The big one was James Watt's improved steam engine in 1763, powering the Industrial Revolution with coal.

Mining

Many 19th-century inventions served mining. The first steam engine removed floodwater from coal and tin mines to keep production going.

Steam locomotives first transported ore from mines. Dynamite, patented in 1867, blew up obstructing rocks in mining.

Transportation

The 19th century saw massive transport innovations. The steam locomotive, like Stephenson's Rocket in 1829, became the model for hauling materials and products for 150 years.

Steamboats adapted steam to rivers, speeding up goods and people transport.

Retailing

Before modern conveniences, 19th-century retailing innovated too. The department store, like John Wanamaker's six-story one in Philadelphia in 1861, offered everything.

The Sears catalog reached American consumers with a huge range of goods, from clothes to prefab houses.

How Does Industrialization Impact Society?

It creates jobs pulling people from farms to cities for manufacturing work. Those jobs, though tough, often beat unstable farm life.

This builds a new urban consumer base. Businesses emerge to serve them, eventually creating a bigger middle class of artisans and shopkeepers.

A large working class forms too, often facing harsh conditions. Labor unions evolved from the powerless workers' struggles in the Industrial Revolution.

What Is Industrial Activity?

Industrial activity covers any business process needed to make a product, from sourcing and processing to assembly, repair, or dismantling.

What Is Non-Industrial?

You'll see 'non-industrial' in zoning talks. It's a broad category covering everything but manufacturing and related sourcing like mining—think retail, services, entertainment, parking, and homes.

The Bottom Line

Like it or not, industrialization shaped the modern world. You'd be hard-pressed to find anywhere untouched by it, and those spots won't stay that way long.

The Industrial Revolution in Europe and the US launched the modern era. Asia followed later, and the process keeps going into the 21st century.

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