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"A large-scale global shift in manufacturing is the outcome of deindustrialization in the developed world matched by industrialization in the developing world"


"A large-scale global shift in manufacturing is the outcome of deindustrialization in the developed world matched by industrialization in the developing world". Analyze this statement.
(UPSC geography optional paper 1 2019, 10 Marks)







Answer:


De-industrialization means:

  • Employment in the manufacturing sector is declining
  • Fall in manufacturing share in GDP
De-industrialization can be from:

  • Developed countries called post-de-industrialization
  • Premature de-industrialization like manufacturing shift from China to Vietnam, Bangladesh, and India. 
    • Post COVID-19 and the USA China trade war, de-industrialization accelerated in China, and manufacturing production is shifting to Vietnam, Taiwan, Bangladesh, Philippines.
    • Vietnam's economy was grown by 8% in 2019.
    • 56 companies from China planning to shift other countries and out of this 26 to Vietnam, 11 to Taiwan, 8 to Thailand, and 3 India.
    • Despite of Cheap labor, favorable demographic attributes, India is loosing in the race to attract industries due to Vietnam has geographical proximity with China.

Historical perspective of de-industrialization and industrialization.
  • In 1750, Asia, Africa, and Latin America had almost 75 % of world manufacturing production, and much of it located in India and China.
  • Late 18th century, industrialization started in Britain and it spreads to Europe and northern America and the new order of manufacturing shape of the world is started.
  • In 1820, Asia, Africa, Latin America still accounted for 75% of world manufacturing production, and China and India together almost contributed 50% of world manufacturing production.
  • Revolutionary change in way of production, the sharp increase in manufacturing in Europe and Northern America, leads to the demise of traditional industries in India and China and reduces the technological capability over time.
  • Between 1830 and 1913, Asia, Africa, and Latin America's manufacturing production share decrease from 60% to 7.5%, and in Europe and northern America share increase from 40% to 92.5 % in Europe and North America.
  • In the 19th century, industrialization started in Europe and deindustrialization happened in Asia.
  • After 1950, the post-colonization world, industrialization started in developing countries. 
  • After 1980, developing countries gain momentum of industrialized and begin of de-industrialization started from developed countries.

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