Question

2.what are the consequences of industrial deveopment?

Answer 1

The share of poor people in the global population has declined during recent decades. According to Chen and Ravallion (2004), one-third of the population of the world lived in poverty in 1981, whereas the share was 18 per cent in 2001. The decline is largely due to rapid economic growth in populationrich countries like China and India. There are, however, remarkable differences between countries and between regions in the developing world. Some regions and countries, notably in East Asia, are rapidly catching up to industrialized countries. Others, especially in Sub-Saharan Africa, are lagging far behind and the share of poor people in the population has even increased in some countries. Industrial development has had an important role in the economic growth of countries like China, the Republic of Korea (Korea), Taiwan Province of China (Taiwan), and Indonesia. Along with accelerated growth, poverty rates have declined in many countries. Some countries have managed to achieve growth with equity, whereas in others inequality has remained high. In this chapter, the growth stories of seven countries – China, India, Korea, Taiwan, Indonesia, Mexico and Brazil – are described and discussed. The main emphasis is on describing their growth processes and strategies, the role of industrial development, the contribution of a range of policies to growth performance, and the impact of growth on poverty and income inequality. The study begins with a short theoretical discussion of the impact of industrial development on growth and the impact of growth on poverty and income inequality and then proceeds to the country examples. The final section discusses the lessons learnt.