Why should developing countries industrialize?

Advantages of industrialization

• It increases the volume of goods and services that in turn increase human choice hence increases consumer sovereignty
• It increases a country’s tax base and government’s revenue. Also ensures provision of social services like education
• It raises the general standards of living of people overtime especially when per capita income grows over a long period of time
• It is powerful tool against poverty. Those who contribute towards economic growth escape the vicious cycle of poverty
• It brings about employment opportunities in many growing sectors of economy. This finally leads to income redistribution
• It improves the balance of payments of the country concerned. Increased output leads to increased exports and consequently reduces balance of payment deficit.
• Since industrialization increases output, the general price level is expected to fall. Commodities become relatively cheap. This reduces the rate of inflation and increases the rate of consumption.
• It contributes to a country’s prestige because as economy grow faster, its military and economic strength grow
• It supplies agricultural sector with inputs such as fertilizes and insecticides
• Leads to foreign exchange earnings
• It leads to increasing returns to scale, which is not the case with agricultural sector. This therefore leads to fast economic growth and development
• Leads to economic diversification
• It is not subjected to vagaries of climate such as draught and floods
• Leads to development of skills
• It encourages full exploitation of resources