Industrialisation (UK) or industrialization (US) is the period of social and economic change that transforms a human group from an agrarian society into an industrial society. This involves an extensive reorganisation of an economy for the purpose of manufacturing. [3] Industrialisation is associated with increase of polluting industries heavily dependent on fossil fuels. With the increasing focus on sustainable development and green industrial policy practices, industrialisation increasingly includes technological leapfrogging, with direct investment in more advanced, cleaner technologies.
The reorganisation of the economy has many unintended consequences both economically and socially. As industrial workers' incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and economic growth. Moreover, family structures tend to shift as extended families tend to no longer live together in one household, location or place.
The first transformation from an agricultural to an industrial economy is known as the Industrial Revolution and took place from the mid-18th to early 19th century. It began in Great Britain, spreading to Belgium, Switzerland, Germany, and France and eventually to other areas in Europe and North America. [4] Characteristics of this early industrialisation were technological progress, a shift from rural work to industrial labour, and financial investments in new industrial structures. [5] Later commentators have called this the First Industrial Revolution. [6]
The "Second Industrial Revolution" labels the later changes that came about in the mid-19th century after the refinement of the steam engine, the invention of the internal combustion engine, the harnessing of electricity and the construction of canals, railways, and electric-power lines. The invention of the assembly line gave this phase a boost. Coal mines, steelworks, and textile factories replaced homes as the place of work. [7] [8] [9]
By the end of the 20th century, East Asia had become one of the most recently industrialised regions of the world. [10]
There is considerable literature on the factors facilitating industrial modernisation and enterprise development. [11]
The Industrial Revolution was accompanied by significant changes in the social structure, the main change being a transition from farm work to factory-related activities. [12] This has resulted in the concept of Social class, i.e., hierarchical social status defined by an individual's economic power. It has changed the family system as most people moved into cities, with extended family living apart becoming more common. The movement into more dense urban areas from less dense agricultural areas has consequently increased the transmission of diseases. The place of women in society has shifted from primary caregivers to breadwinners, thus reducing the number of children per household. Furthermore, industrialisation contributed to increased cases of child labour and thereafter education systems. [13] [14] [15]
As the Industrial Revolution was a shift from the agrarian society, people migrated from villages in search of jobs to places where factories were established. This shifting of rural people led to urbanisation and an increase in the population of towns. The concentration of labour in factories has increased urbanisation and the size of settlements, to serve and house the factory workers.
Family structure changes with industrialisation. Sociologist Talcott Parsons noted that in pre-industrial societies there is an extended family structure spanning many generations who probably remained in the same location for generations. In industrialised societies the nuclear family, consisting of only parents and their growing children, predominates. Families and children reaching adulthood are more mobile and tend to relocate to where jobs exist. Extended family bonds become more tenuous. [16] One of the most important criticisms of industrialisation is that it caused children to stay away from home for many hours and to use them as cheap workers in factories. [17] [18] [15]
Between the early 1960s and 1990s, the Four Asian Tigers underwent rapid industrialisation and maintained exceptionally high growth rates. [19]
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As of 2018 [update] the international development community (World Bank, Organisation for Economic Co-operation and Development (OECD), many United Nations departments, FAO WHO ILO and UNESCO, [20] endorses development policies like water purification or primary education and co-operation amongst third world communities. [21] Some members of the economic communities do not consider contemporary industrialisation policies as being adequate to the global south (Third World countries) or beneficial in the longer term, with the perception that they may only create inefficient local industries unable to compete in the free-trade dominated political order which industrialisation has fostered.[ citation needed ] Environmentalism and Green politics may represent more visceral reactions to industrial growth. Nevertheless, repeated examples in history of apparently successful industrialisation (Britain, Soviet Union, South Korea, China, etc.) may make conventional industrialisation seem like an attractive or even natural path forward, especially as populations grow, consumerist expectations rise and agricultural opportunities diminish.
The relationships among economic growth, employment, and poverty reduction are complex, and higher productivity can sometimes lead to static or even lower employment (see jobless recovery). [22] There are differences across sectors, whereby manufacturing is less able than the tertiary sector to accommodate both increased productivity and employment opportunities; more than 40% of the world's employees are "working poor", whose incomes fail to keep themselves and their families above the $2-a-day poverty line. [22] There is also a phenomenon of deindustrialisation, as in the former USSR countries' transition to market economies, and the agriculture sector is often the key sector in absorbing the resultant unemployment. [22]
The Industrial Revolution, sometimes divided into the First Industrial Revolution and Second Industrial Revolution, was a period of global transition of the human economy towards more widespread, efficient and stable manufacturing processes that succeeded the Agricultural Revolution. Beginning in Great Britain, the Industrial Revolution spread to continental Europe and the United States, from around 1760 to about 1820–1840. This transition included going from hand production methods to machines; new chemical manufacturing and iron production processes; the increasing use of water power and steam power; the development of machine tools; and the rise of the mechanised factory system. Output greatly increased, and the result was an unprecedented rise in population and the rate of population growth. The textile industry was the first to use modern production methods, and textiles became the dominant industry in terms of employment, value of output, and capital invested.
Child labour is the exploitation of children through any form of work that interferes with their ability to attend regular school, or is mentally, physically, socially and morally harmful. Such exploitation is prohibited by legislation worldwide, although these laws do not consider all work by children as child labour; exceptions include work by child artists, family duties, supervised training, and some forms of work undertaken by Amish children, as well as by Indigenous children in the Americas.
Import substitution industrialization (ISI) is a trade and economic policy that advocates replacing foreign imports with domestic production. It is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. The term primarily refers to 20th-century development economics policies, but it has been advocated since the 18th century by economists such as Friedrich List and Alexander Hamilton.
The knowledge economy, or knowledge-based economy, is an economic system in which the production of goods and services is based principally on knowledge-intensive activities that contribute to advancement in technical and scientific innovation. The key element of value is the greater dependence on human capital and intellectual property as the source of innovative ideas, information, and practices. Organisations are required to capitalise on this "knowledge" in their production to stimulate and deepen the business development process. There is less reliance on physical input and natural resources. A knowledge-based economy relies on the crucial role of intangible assets within the organisations' settings in facilitating modern economic growth.
In sociology, an industrial society is a society driven by the use of technology and machinery to enable mass production, supporting a large population with a high capacity for division of labour. Such a structure developed in the Western world in the period of time following the Industrial Revolution, and replaced the agrarian societies of the pre-modern, pre-industrial age. Industrial societies are generally mass societies, and may be succeeded by an information society. They are often contrasted with traditional societies.
In sociology, the post-industrial society is the stage of society's development when the service sector generates more wealth than the manufacturing sector of the economy.
The first five-year plan of the Union of Soviet Socialist Republics (USSR) was a list of economic goals, implemented by Communist Party General Secretary Joseph Stalin, based on his policy of socialism in one country. Leon Trotsky had delivered a joint report to the April Plenum of the Central Committee in 1926 which proposed a program for national industrialisation and the replacement of annual plans with five-year plans. His proposals were rejected by the Central Committee majority which was controlled by the troika and derided by Stalin at the time. Stalin's version of the five-year plan was implemented in 1928 and took effect until 1932.
Pre-industrial society refers to social attributes and forms of political and cultural organization that were prevalent before the advent of the Industrial Revolution, which occurred from 1750 to 1850. Pre-industrial refers to a time before there were machines and tools to help perform tasks en masse. Pre-industrial civilization dates back to centuries ago, but the main era known as the pre-industrial society occurred right before the industrial society. Pre-Industrial societies vary from region to region depending on the culture of a given area or history of social and political life. Europe was known for its feudal system and the Italian Renaissance.
The Gerschenkron effect, developed by Alexander Gerschenkron, claims that changing the base year for an index determines the growth rate of the index. This effect is applicable only to aggregation method using reference price structure or reference volume structure. However, if production is measured by "real" tearms, this effect does not exist.
Industrialization in the Soviet Union was a process of accelerated building-up of the industrial potential of the Soviet Union to reduce the economy's lag behind the developed capitalist states, which was carried out from May 1929 to June 1941.
Proto-industrialization is the regional development, alongside commercial agriculture, of rural handicraft production for external markets. Cottage industries in parts of Europe between the 16th and 19th centuries had long been a niche topic of study. In the early 1970s, some economic historians introduced the label "proto-industrialization", arguing that these developments were the main cause of the economic and demographic growth and social change that occurred in Europe over this period, and of the Industrial Revolution that followed. Several theories were proposed to explain the mechanisms of this proposed causation.
The economy of East Asia comprises 1.6 billion people living in six different countries and regions. The region includes several of the world's largest and most prosperous economies: Taiwan, Japan, South Korea, China, Hong Kong, and Macau. It is home to some of the most economically dynamic places in the world, being the site of some of the world's most extended modern economic booms, including the Taiwan miracle (1950–present) in Taiwan, Miracle on the Han River (1974–present) in South Korea, Japanese economic miracle (1950–1990) and the Chinese economic miracle (1983–2010) in China.
Life in Great Britain during the Industrial Revolution shifted from an agrarian-based society to an urban, industrialised society. New social and technological ideas were developed, such as the factory system and the steam engine. Work became more regimented, disciplined, and moved outside the home with large segments of the rural population migrating to the cities.
This article covers the Economic history of Europe from about 1000 AD to the present. For the context, see History of Europe.
A technological revolution is a period in which one or more technologies is replaced by another new technology in a short amount of time. It is a time of accelerated technological progress characterized by innovations whose rapid application and diffusion typically cause an abrupt change in society.
Raphael Malcolm Kaplinsky is an Honorary Professor at the Science Policy Research Unit and an Emeritus Professorial Fellow at the Institute of Development Studies, University of Sussex. In 2024 he was awarded an Honorary Doctorate by the University of Johannesburg, South Africa. He was an active and well-known opponent to Apartheid in South Africa during the 1960s, and played a leading role in 1968 in the Mafeje affair. Kaplinsky was not allowed to return to his country of birth until Nelson Mandela was released from prison in 1990, after which he played an active role in policy development at the national and regional levels. He spent the bulk of his professional career at the University of Sussex where he led research programmes on industrial and technology policy and on Global value chain. He led and participated in a number of Advisory Missions to governments in Africa, Asia, Latin America, the Caribbean and Europe.
Engels' pause is a term coined by economic historian Robert C. Allen to describe the period from 1790 to 1840, when British working-class wages stagnated and per-capita gross domestic product expanded rapidly during a technological upheaval. Allen named the period after German philosopher Friedrich Engels, who describes it in The Condition of the Working Class in England. Economists have analyzed its causes and effects since the nineteenth century, with some questioning its existence. Twenty-first-century technological upheaval and wage stagnation have led economists and academics to draw parallels between the two periods.
The economic de-industrialisation of India refers to a period of studied reduction in industrial based activities within the Indian economy from 1757 to 1947.
Work or labor is the intentional activity people perform to support the needs and desires of themselves, other people, or organizations. In the context of economics, work can be viewed as the human activity that contributes towards the goods and services within an economy.
Industrialization in Germany was the phase of the breakthrough of industrialization in Germany, beginning at the time from around 1815 to 1835. This period was preceded by the periods of pre-industrialization and early industrialization. In general, the decades between the 1830s and 1873 are considered the phase of industrial take off. The Industrial Revolution was followed by the phase of high industrialization during the German Empire. The (catch-up) Industrial Revolution in Germany differed from that of the pioneering country of Great Britain in that the key industries became not the textile industry but coal production, steel production and railroad construction.
Contemporary notions of industrialization can be traced back to the experience of Great Britain, Western Europe and North America during the 19th and early 20th centuries (Nzau, 2010). The literature that reviews the experiences of these countries seems to agree that, although the early-industrializing countries started at different stages of growth, they followed more or less a similar format of change that led to their transformation. Marked by the shift from a subsistence/agrarian economy to more industrialised/mechanised modes of production, hallmarks of industrialization include technological advance, widespread investments into industrial infrastructure, and a dynamic movement of labor from agriculture into manufacturing (Lewis, 1978; Todaro, 1989; Rapley, 1994).