why is industrialization important
Answers
* Provides market to other sectors
Industries provide a market for both producer and consumer goods from other sectors of the economy. In the case of producer goods, industries buy raw materials from the primary sector, e. g. cotton from agriculture, soda-ash from mining, and timber from forestry. The industrial sector also buys services from the tertiary sector, e. g. banking, insurance, transport and communication. At the same time, industrial workers buy consumer goods from other sectors. By providing a market to these other sectors, industries facilities the development of the country.
* Provides inputs to other sectors
The industrial sector provides the necessary inputs to other sectors of the economy. For instance, it provides agriculture with farm inputs such as tractors, fertilizers, chemicals and drugs. It also provides other sectors with machinery, steel, oil, etc. This makes it possible for these other sectors to operate and contribute to development.
* Provides consumer goods to other sectors
Workers from other sectors require consumer goods such as clothes, processed food, radios, television sets, vehicles, and furniture, that are provided by the manufacturing industry. This raises the living standards of workers as well as their productivity.
*Creates employment opportunities
The industrial sector is an important employer for both skilled and unskilled labour. Agriculture and other sectors cannot absorb all the labour force. As industries expand, they account for a much share of employment. By so doing, industries alleviate unemployment.
* Conserves and earns foreign exchange
Through industrialization, a country is able to conserve foreign exchange by reducing on imports. This is particularly so when industries are established to produce goods that were previously imported. At the same time, where a country manufactures goods for export, it earns foreign exchange. This foreign exchange can be used to import essential capital goods and stimulate capital formation.
* Adds value to primary products
Producers of primary products can benefit more by processing their products before export. This is because processing adds value to a product. Instead of exporting fruits in their raw form, they can be processed and tinned. By so doing, fruits will fetch a higher price. Similarly, coffee can fetch a higher price by being processed before exportation.
* Facilitates technological change
Industrialization is conducive to development of ideas and facilitates invention and innovation. It can be seen as an instrument of change since it transcends cultural boundaries. Through industrialization, people from different backgrounds have been able to improve on the utilization of resources. Industries are breeding grounds for entrepreneurs and managers. They also help train the skilled manpower needed in a country. In a way, the manufacturing industry facilitates technological advancement, which is crucial for development.