Industrialisation (UK) or industrialization (US) is the period of social and economic change that transforms a human group from an agrarian society into an industrial society. This involves an extensive reorganisation of an economy for the purpose of manufacturing. Industrialization is associated with increase of polluting industries heavily dependent on fossil fuels. With the increasing focus on sustainable development and green industrial policy practices, industrialization increasingly includes technological leapfrogging, with direct investment in more advanced, cleaner technologies.
The reorganization of the economy has many unintended consequences both economically and socially. As industrial workers' incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and economic growth. Moreover, family structures tend to shift as extended families tend to no longer live together in one household, location or place.
The first transformation from an agricultural to an industrial economy is known as the Industrial Revolution and took place from the mid-18th to early 19th century. It began in Great Britain, spreading to Belgium, Switzerland, Germany, and France and eventually to other areas in Europe and North America. Characteristics of this early industrialisation were technological progress, a shift from rural work to industrial labor, and financial investments in new industrial structure. Later commentators have called this the First Industrial Revolution.
The "Second Industrial Revolution" labels the later changes that came about in the mid-19th century after the refinement of the steam engine, the invention of the internal combustion engine, the harnessing of electricity and the construction of canals, railways and electric-power lines. The invention of the assembly line gave this phase a boost. Coal mines, steelworks, and textile factories replaced homes as the place of work.
By the end of the 20th century, East Asia had become one of the most recently industrialised regions of the world. The BRICS states (Brazil, Russia, India, China and South Africa) are undergoing the process of industrialisation.
There is considerable literature on the factors facilitating industrial modernisation and enterprise development.
The Industrial Revolution was accompanied with a great deal of changes on the social structure, the main change being a transition from farm work to factory related activities. This has resulted in the concept of Social class, i.e., hierarchical social status defined by an individual's economic power. It has changed the family system as most people moved into cities, with extended family living apart becoming more common. The movement into more dense urban areas from less dense agricultural areas has consequently increased the transmission of diseases. The place of women in society has shifted from primary caregivers to breadwinners, thus reducing the number of children per household. Furthermore, industrialisation contributed to increased cases of child labor and thereafter education systems.
Main article: Urbanisation
As the Industrial Revolution was a shift from the agrarian society, people migrated from villages in search of jobs to places where factories were established. This shifting of rural people led to urbanization and increase in the population of towns. The concentration of labour in factories has increased urbanisation and the size of settlements, to serve and house the factory workers.
See also: Exploitation colonialism
China, along with many other areas of the world run by industrialisation, has been affected by the world's never ending rise of supply and demand. With the largest population in the world, China has become one of the main exporters of household items and appliances.
Family structure changes with industrialisation. Sociologist Talcott Parsons noted that in pre-industrial societies there is an extended family structure spanning many generations who probably remained in the same location for generations. In industrialised societies the nuclear family, consisting of only parents and their growing children, predominates. Families and children reaching adulthood are more mobile and tend to relocate to where jobs exist. Extended family bonds become more tenuous.
Between the early 1960s and 1990s, the Four Asian Tigers underwent rapid industrialisation and maintained exceptionally high growth rates.
As of 2018[update] the international development community (World Bank, Organisation for Economic Co-operation and Development (OECD), many United Nations departments, FAO WHO ILO and UNESCO, endorses development policies like water purification or primary education and co-operation amongst third world communities. Some members of the economic communities do not consider contemporary industrialisation policies as being adequate to the global south (Third World countries) or beneficial in the longer term, with the perception that they may only create inefficient local industries unable to compete in the free-trade dominated political order which industrialisation has fostered. Environmentalism and Green politics may represent more visceral reactions to industrial growth. Nevertheless, repeated examples in history of apparently successful industrialisation (Britain, Soviet Union, South Korea, China, etc.) may make conventional industrialisation seem like an attractive or even natural path forward, especially as populations grow, consumerist expectations rise and agricultural opportunities diminish.
The relationships among economic growth, employment, and poverty reduction are complex. Higher productivity, it is argued,[by whom?] may lead to lower employment (see jobless recovery). There are differences across sectors, whereby manufacturing is less able than the tertiary sector to accommodate both increased productivity and employment opportunities; more than 40% of the world's employees are "working poor", whose incomes fail to keep themselves and their families above the $2-a-day poverty line. There is also a phenomenon of deindustrialisation, as in the former USSR countries' transition to market economies, and the agriculture sector is often the key sector in absorbing the resultant unemployment.
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Contemporary notions of industrialization can be traced back to the experience of Great Britain, Western Europe and North America during the 19th and early 20th centuries (Nzau, 2010). The literature that reviews the experiences of these countries seems to agree that, although the early-industrializing countries started out at different stages of growth, they followed more or less a similar format of change that led to their transformation. Marked by the shift from a subsistence/agrarian economy to more industrialized/mechanized modes of production, hallmarks of industrialization include technological advance, widespread investments into industrial infrastructure and a dynamic movement of labor from agriculture into manufacturing (Lewis, 1978; Todaro, 1989; Rapley, 1994).