What is industrialization of economy?

 

(Continued from last week)

By Dr.Kashiwa Bulaya

Who benefits from capitalist industrialisation? Large scale machine production and industrial complexes in capitalist countries are developed primarily to enrich the capitalists and are coupled with greater exploitation of the workers, the greater intensity of their labour, more industrial accidents and higher unemployment, which exacerbates the antagonisms between the workers and the bourgeoisie. Capitalist industrialisation promotes rapid urban growth i.e. urbanisaiton, widens the rift between urban and rural areas and heightens the contradictions between the technically advanced and economically underdeveloped countries. Objectives of Industrialisation in Developing Countries Industrialisation in the developing countries should address some of the following objectives: contribute to the increase in the proportion of industry in economy, build industries especially heavy industries and enterprises, equip the backward agriculture and other economic sectors with modern machinery and technology etc. Industrialisation is a crucial issue in the transformation of backward, monocultural economies, in achieving economic independence, in reforming the social structure and in creating and strengthening the working class. Industrialisation in the developing countries should create the material base for eliminating the antithesis between cities and rural areas and between mental and physical labour. Robust implementation of the policy of industrialisation in the developing countries can and should lead to employment creation and reduction of poverty levels in the respective countries. Sources of Resources for Industrialisation in the Developing Countries Industrialisation is not cheap. It requires huge material, labour and financial resources. It would be wishful thinking for the developing countries to expect former colonial masters to fund industrialisation of the former colonies, a “thing” colonial powers did not do when they were in-charge of colonies. In the first place how did colonialists occupy the colonies? By force. How did colonialists leave the colonies? By force. And you expect colonial masters to provide resources for industrialisation of the former colonies? It is equally not feasible to expect industrialised countries which import raw materials from developing countries to provide capital for industrialisation of the newly liberated countries. Reasons for such a situation are obvious. If developing countries were industrialised, they would build industrial capacity to process the raw materials into finished goods in their respective countries and subsequently “suffocate” the economies of the industrialised states which depend on the raw materials from the developing countries. With industrialisation effected, developing countries would reach industrial parity with the developed countries and that is what the industrialised states would not like to take place. The industrialised countries would prefer the status quo to continue so they perpetuate the exploitation and plunder of the natural resources and raw materials from the developing countries. Industrialisation is therefore not a smooth ride but a struggle against the industrialised countries. On 19th October, 2016 the Common Market for Eastern and Southern Africa (COMESA) member states – Zambia, Zimbabwe, Uganda, Swaziland, Sudan, Seychelles, Rwanda, Mauritius, Malawi, Madagascar, Libya, Kenya, Ethiopia, Eritrea, Egypt, Djibouti, Democratic Republic of Congo, Comoros and Burundi held the 19th Summit of the COMESA Authority of Heads of State and Government in Antananarivo, Madagascar. Among the agenda items of the 19th COMESA Summit included the need for investments in energy generation, infrastructure development and sustainable industrialisation. The inclusion on the agenda and discussion of industrialisation by the COMESA Heads of State and Government at their Summit in Antananarivo demonstrate the seriousness and commitment the COMESA leaders attach to industrialisation. Sources of resources for industrialisation in the developing countries are not only scarce but limited. The sources of the resources for industrialisation are basically two. Namely internal sources and external. Under internal sources of resources include: (1) Revenue from industry; (2) Revenue from agriculture; (3) Profits from state enterprises; (4) Loans from local banks; (5) Funds from domestic trade; (6) Accumulation (reserves) in the economy from savings; (7) Taxes of all types from the tax payers-companies and individuals; (8) Schools, colleges and universities for trained and qualified human resources; (9) Material and technical base built over a period of time; (10) Scientific and technological attainments etc. Some of the external sources of resources include: (1) Loans from foreign banks such as African Development Bank; (2) Credits from foreign friendly states; (3) Material resources from other states; (4) Transfer of science and technology from other countries; (5) Training of personnel with assistance from foreign states; (6) Foreign trade etc. Industrialisation differs from country to country in terms of objectives, sources of resources, methods and social consequences. By and large it must restructure the economy, ensure a high standard of well–being for all and raise people’s culture and technical levels. Industrialisation should serve as the base for transforming small individual peasant farms into large and mechanised farms.      Industrialisation means development of large-scale industry to ensure a fundamental restructuring of the entire nation economy, including agriculture on the basis of machine technology. It lays the foundation for the co-operative enterprises in industry and agriculture. Developing countries which embark on industrialisation like COMESA member states should take into account international division of labour and concentrate their efforts on building those industries for which they have the most propitious natural and economic conditions. The COMESA member states must rationally locate the productive forces throughout their respective countries and COMESA borders in conformity with the new objectives of production, learning the science of planning and new economic management. Industrialisation leads to the improvements in the instruments of labour which serve as a measure of man’s capacity to conquer nature and transform the natural resources to satisfy the material and cultural needs of the people.

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