Industrial
Industrial
Industrial
INDUSTRIALISATION
Industrialisation started in Europe in the 18th century and in Britain people started
investing in machines for production. This is referred to as the Industrial Revolution.
This was the change brought by mechanisation of the manufacturing industry. New
technologies enabled production of large quantities of goods. By the end of the 19 th
century, most countries of Western Europe, North America and Japan had started
industrialising.
In Botswana, industrialisation is still in its infancy stage, i.e. it is new and there are
only fewer industries. It contributes about 12% of employment in the formal sector.
Industry
The production of goods and services other than those produced in agriculture.
Production is done by the use of machines and usually in large factories.
Industrial Production
This is a process which involves the creation of economic activities which concentrate
on the production of goods and provision of services on a large scale by using
complex technology. This process is capital intensive and requires highly skilled
manpower.
Craft Production
It is an economic activity which is carried out on a small scale to produce goods and
provide services using simple technology. It is labour intensive and requires little
skills.
NB. An industrialised country is the one in which goods are produced and services
provided in industries through the use of advanced technology.
INDUSTRIALISATION STRATEGIES
There are two main industrialisation strategies which have been successfully used by
many countries to industrialise. These are Import Substitution Industrialisation (ISI)
and Export Oriented Industrialisation (EOI). These can be implemented through large
and small-scale production, Multi National Companies (MNCs), Joint Ventures, and
Local Companies.
This is a whereby a country starts producing goods and services locally to replace
those that it has been buying from outside. It involves the emergence and expansion
of domestic industries to replace major imports with locally produced products. This
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strategy is used to protect infant industries from foreign competition. A deliberate
effort is usually made to promote local industries through the following:
Putting high tariffs on imported goods
Providing loans and grants to citizens to start industries.
Encouraging students to specialise in science and technology so as to provide the
much needed skills
Setting up national research centres to encourage technical innovations.
Inviting MNCs to invest in the country
Providing the necessary infrastructure such as power, telecommunication, roads etc
Investing directly in heavy industries which are of strategic importance
Controlling workers so as to ensure sustainability at the work place
This involves the emergence and expansion of industries to produce for the foreign
market. This strategy is employed mainly to generate foreign exchange and to create
job opportunities for the locals. It also encourages research, innovation and
development of skills and teaches people about industrial production. It encourages
economies of scale that is; industries can produce more for a bigger market and be
able to cut down on production costs, use cheap local labour and export products that
may not find a market locally.
The government may invite foreign companies to come and establish industries in the
country so as to create employment, generate revenue for the country and to make
available goods and services needed by citizens. For advantages and disadvantages
refer to previous notes on MNCs.
Joint Ventures
These are companies that are partly owned y the government and a private company
or by two governments. Examples: BOLUX, BCL, DEBSWANA, SODA ASH.
For advantages and disadvantages refer to previous notes on joint ventures.
Local Investment
Raw Materials
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These may determine the location of industries e.g. industries using large quantities of
bulky raw materials like a cement factory, brick moulding, iron smelting, lumbering
etc and those processing perishables may choose to locate near their sources of raw
material. These are called raw material oriented industries.
Advanced Technology
For an industry to be more productive, it needs to divide the work into smaller tasks
such that individuals can specialise in a small part of the whole task. Workers are
trained to concentrate on different parts of the production process. This is referred to
as Assembly Line Production – products pass through different stages of production
with workers performing different tasks at each stage.
In modern industries most of the machine processes are controlled by computers such
industries are referred to as high tech industries. In such industries machines handle
goods and only a few skilled workers are required to ensure that the work is properly
done.
In industries today, women are increasingly doing the jobs that were initially regarded
as men’s jobs. This has been initiated by the following reasons:
Increased mechanisation has done away with more heavy work.
Women excel in work requiring precision and delicacy of touch.
Women appear to tolerate long hours of machine work as compared to men.
Synthetic Products
New technologies have made it possible to replace some natural products with
artificial products e.g. synthetic rubber has been designed from hydrocarbon derived
from petroleum to replace the natural rubber.
Sub–Contration
Cottage Industries
Some part of the work in manufacturing may be done at the workers home especially
in electronics and textile industries.
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Co-ordination of Specialised Tasks
Large-scale industries are made up of large numbers of specialists e.g. in the mining
industry, there are people specialising in engineering, sales, research, accounting,
advertising etc. a large complex organisation has to co-ordinate these specialised
tasks.
Advantages of Industrialisation
It promotes development.
It creates employment for citizens.
May lead to economic growth since industrialisation may reduce the amount of goods
and services bought outside a country
It promotes mass production of goods and services which may be sold at affordable
prices.
It reduces both internal and external migration.
The government gains revenue.
It promotes economic diversification.
Disadvantages of Industrialisation
Big foreign companies that set up in developing countries lead to the collapse of small
local industries.
Industrialisation leads to increased pollution.
The use of machinery may lead to increasing levels of unemployment and loss of
craftsmanship.
Industries require large pieces of land and this may lead to shortage of land needed for
agricultural production.
Political instability
Countries which are dominated by continuous warfare, spend more money in buying
weapons and repairing the damage caused by war than setting up industries.
Lack of capital
People in developing countries lack skills to run industries and this makes it difficult
for them to use complex technology.
Infrastructure
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The poor status of roads and telecommunication networks in developing countries is
unable to support industrial development. Developing countries also do not have
adequate educational and health facilities.
Shortage of Markets
Many developing countries have smaller populations the majority of which are poor.
This therefore means that only few gods can be sold locally. Developing countries
therefore have to secure markets for their products in the developed countries.
Some developing countries cannot produce the raw materials needed by industries.
For example some industries may fail to thrive following an outbreak of long periods
of draught which may affect agricultural production.
Positive Effects
There is creation of employment that leads to the improvement of the living standards
of the people.
Governments earn money through taxing industries and employees of these industries.
The money could be used to improve the welfare of citizens.
Industrialisation leads to self-reliance as countries stop importing from developed
countries.
People acquire different skills.
Quality goods are offered and people have a variety of products to choose from.
There is surplus production that leads to savings and increased investment.
Countries start to benefit from trade as they add value to exports than when they
export raw materials.
Negative Effects
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Poor housing, overcrowding and traffic jams are common.
Natural resources may be overused.
The gap between the rich and the poor widens.
Workers begin to work for long hours with little pay.
Working conditions become squalid and unhealthy.
Industrialisation promotes the use of modern production methods that lead to the
neglect of traditional production, agriculture and craft production.
Industries occupy large pieces of land that may lead to shortage of land for other
sectors such as agriculture.
Industrialisation may lead to high employment rates because of the use of machinery.
URBANISATION
Urban area: In Botswana an urban area is a place where 75% of the population
depend on non-agricultural production.
Rural area: In Botswana a rural area is a place where 75% of the population depend
on agricultural production.
Urban Growth: the absolute increase in the physical size of a town or city.
Before the colonial era, many people lived in rural areas with agriculture as the main
economic activity. Towns were established as administrative centres as well as for
training purposes. Great growth of towns and cities was experienced after the colonial
period. These towns and cities attracted many people from the rural areas.
CLASSIFICATION OF SETTLEMENTS
2. By function
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Urban area: a place where a majority of the population is dependent on non-
agricultural employment.
CAUSES OF URBANISATION
There are two main causes of urbanisation that is Natural Increase and rural-urban
migration.
(a) Natural Increase: The difference between Birth Rate (BR) and Death Rate (DR)
= BR- DR = NI.
(b) Rural-Urban Migration: The movement of people from the countryside to towns
and cities. This can either be due to pull or push factors.
Push Factors: These are socio-economic and political conditions that force people
out of the rural areas.
Pull Factors: These are socio-economic and political conditions that attract people to
towns and cities.
Positive
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Negative
Low agricultural production – able-bodied young people leave the elderly and the
young to take care of agriculture
Breakdown of families
Neglect of rural areas in favour of urban areas
Deculturalisation
Positive
Negative
Formal sector: part of the economy which is organised by large firms and the
government.
Characteristics
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Advantages
Disadvantages
Most locals in developing countries lack skills to qualify to enter into such sector
A lot of formalities are required before one is employed
Governed by laws which sometimes disturb the running of the business e.g. closing
times
Informal Sector: part of the economy that operates on a small scale and ad hoc basis
with the work done on temporary places normally the home or the streets.
Characteristics
Advantages
Disadvantages