The first industrial country. Industrial countries of the world in the early 20th century. List of new industrialized countries
Industrial countries had athe economy is more than a tangible impact. They moved progress and changed the status of specific regions. Therefore, the history and characteristics of these states deserve attention.
What is meant by industrialization
When this term is used, it is abouteconomic process, the essence of which is reduced to the transition from agrarian craft to large-scale machine production. It is this fact that is the key feature on which the industrial countries of the world are determined.
It is worth noting the following feature: as soon as machine production begins to predominate in the state, the development of the economy turns into an extensive regime. The transition of a particular country to the category of industrial ones is due to the impact of such a factor as the development of new technologies and natural sciences in industry. Such changes are particularly active in the sphere of energy production and metallurgy.
In fact, any industrial country isproduct of competent reforms in the sphere of legislation and policy. At the same time, of course, it does not do without the formation of a significant raw material base and attracting a large number of cheap labor.
The consequence of such processes is the fact that,that the primary sector of the economy (agriculture, extraction of resources) is beginning to dominate the secondary (the processing sector of raw materials). Industrialization promotes dynamic development of scientific disciplines and their subsequent introduction into the production segment. This, in turn, allows you to significantly increase the income of the population.
The First Industrial Country
If you look at the historical data, you canto draw an obvious conclusion: the United States was the leading industrial movement. In the late 19th and early 20th centuries, a large base for dynamic industrial growth was created here, which was facilitated by a tangible inflow of labor. The components of this base were significant raw materials, the lack of obsolete equipment and the provision of absolute freedom for economic activities.
Considering the history of industrial developmentproduction, it should be noted that tangible progress in this area occurred in the early twentieth century. They manifested themselves through the growth of the rate of development of heavy industry. This fact was also contributed by the constructed railway transcontinental lines.
Such an industrial country as the US is interestingthe fact that it was the first state in the history of world economic development, on the territory of which the following fact was recorded: the proportion of heavy industry exceeded the rest of the total industrial output. Other countries were able to reach this level much later.
Another change that the industrial country must inevitably lead,concern the political and legislative sphere. At the same time, it is inevitable that there is a sufficient amount of cheap labor force and raw materials in sufficient quantity.
One of the key production goals under theThe industrial economy is the production of as many finished products as possible. As a result, significant volumes of goods allow companies to enter the world market.
Change in the structure of heavy industry in the USA
Given that North America is a territory,where the industrial country, which became the first in such a format of the economy, experienced its formation, it is worth noting the following information: similar changes were achieved through changes in the structure of heavy industry in the USA.
It is about the impact of scientific and technicalprogress, which was the reason for the emergence and development of new industries such as oil, aluminum, electrical, rubber, automotive, etc. At the same time, car production and refining had the most significant impact on the development of the American economy.
Because electric lighting is fastwas introduced into everyday life and production, kerosene rapidly lost its relevance. At the same time, the demand for oil has steadily increased. This fact is explained by the dynamic development of the automotive industry, which inevitably led to an increased volume of purchases of gasoline, for the production of which oil was used.
It is worth noting and the fact that it was the introduction of the car into the lives of US citizens had a significant impact on the structure of production, allowing the oil refining industry to become dominant.
Changes also experienced the methods of rational organization of labor. This process was influenced by the development of mass production. This is primarily a flow method.
It is thanks to these factors that the US began to be defined as an industrial country.
Other representatives of the industrial economy
The USA, of course, became the first state,which could be classified as industrial. If we consider the industrial countries of the 20th century, then it will be possible to single out two waves of modernization. These processes can also be called organic and catching up development.
The countries of the first echelon include the United States,Great Britain, France and other small European states (Scandinavian countries, Holland, Belgium). The development of all these countries was characterized by a gradual transition to an industrial type of production. First, there was an industrial revolution, followed by a transition to mass and large-scale production of conveyor type.
The formation of such processes was preceded by certain cultural and socio-economic prerequisites:
- a high level of development of manufactory production, which was subjected to the impact of modernization in the first place;
- maturity of commodity-money relations, leading to the maturity of the domestic market and its ability to absorb significant volumes of industrial products;
- a palpable layer of poor people who do not have the opportunity to earn in another way, except for providing their services as a work force.
The last point can be attributed to those entrepreneurs who managed to accumulate capital and were ready to invest it in current production.
Considering industrial countries in the early 20'scentury, it is worth highlighting such states as Austria-Hungary, Japan, Russia, Italy and Germany. Their involvement in industrial production due to the influence of some factors was somewhat belated.
Despite the fact that in the directionMany countries moved in the direction of industrialization, the development of all states had common features. A key characteristic in this case was the significant influence of the government in the period of modernization. The special role of the state in these processes could be explained by the following reasons.
1. First of all, it was the state that played the decisive role in the implementation of reforms aimed at expanding commodity-money relations, as well as reducing the number of semi-natural and subsistence farms characterized by low productivity. Such a strategy made it possible to obtain more free labor for effective development of production.
2. To understand why the industrial countries have always been characterized by a significant share of the state's participation in the modernization process, it is worth paying attention to such a factor as the need to introduce increased customs duties on the import of imported products. Such measures could be carried out only at the level of legislation. And thanks to such a strategy, domestic producers, who stood at the beginning of their development, were protected and able to quickly reach a new level of turnover.
3. The third reason why the state's active participation in the modernization process was inevitable is the lack of funds from enterprises to finance production. Weakness of domestic capital was compensated by budgetary means. This was reflected in the financing of the construction of factories, plants and railways. In some cases, even mixed banks and companies were created, using state and sometimes foreign capital. This fact explains why the industrial countries, in addition to exporting products, were focused on attracting the funds of foreign investors. Especially strongly influenced by such investments in the process of modernization of Japan, Russia and Austria-Hungary.
The place of industrial countries in the modern economy
The modernization process did not stop its development. Thanks to this, new industrial countries managed to form. Listthey are as follows:
- South Korea,
- Hong Kong,
The first four countries stand out especially against the background ofthe rest, due to which they are called Asian tigers. Throughout the 1980s, each of the states listed above showed its ability to ensure an annual growth of the economy with a mark above 7%. Moreover, they were able to achieve a fairly rapid overcoming of socio-economic underdevelopment and to approach the level of countries that can be defined as developed.
Criteria by which industrial countries are determined
The UN is constantly monitoring the situation in the world,paying special attention to the economic development of various regions. This organization has certain criteria by which they define new industrial countries. The list can be replenished only by the state that meets certain standards in the following categories:
- volume of exports of industrial products;
- the size of the gross domestic product per capita;
- specific weight in the GDP of manufacturing industry (should not be less than 20%);
- volume of investments outside the country;
- average annual growth rates of GDP.
For each of these criteria and for all the total industrialized countries, the list of which is growing steadily, should significantly differ from other states.
Features of the economic model of NIS
There are certain reasons, both internal and external, that have had a significant impact on the economic development of the newly industrialized countries.
If we talk about the external factors of economicgrowth characteristic for all countries, first of all, attention should be paid to the following fact: regardless of which industrial countries are considered, they will all combine the presence of interest from developed industrial states. And we are talking about both economic and political interests. As an example, the obvious interest shown by the US in relation to South Korea and Taiwan. This is explained by the fact that these regions contribute to the opposition of the communist regime, which dominates in East Asia.
As a result, America has rendered these two statesconsiderable military and economic support, which created a kind of impetus for the dynamic development of these states. That is why industrial countries, in addition to exporting goods, are largely oriented toward foreign investment.
As for the South Asian countries, their progressis due to active support from Japan, in recent decades has opened numerous branches of corporations, which created new jobs and raised the level of industry as a whole.
It is worth noting and the fact that in the newindustrial countries located on the territory of Asia, most of the entrepreneurial capital was directed to the raw materials and manufacturing industries.
As for the Latin American countries, in this region, investment was directed not only to the manufacturing industry, but also to the services sector, as well as trade.
It is impossible not to notice the fact of globaleconomic expansion of foreign private capital. That is why the industrial countries in addition to their own resources in virtually every economic sector have a certain percentage of foreign capital.
Latin American NEX model
In the modern economy, two keymodels, through which it is possible to characterize the structure and principles of the development of modern industrial countries. It's about the Latin American and Asian system.
The first model is oriented to import substitution,in the second accent is put on export. In other words, some countries are oriented to the domestic market, while others receive the bulk of the capital through exports.
This is one of the answers to the question whyindustrial countries, in addition to exporting goods, are actively focused on substitution of imports. It all boils down to using a particular model. At the same time, it should be noted that the strategy of saturation of the domestic market with a national product has helped many states to obtain economic progress. To do this, it was necessary to diversify the economic structure in the country. As a result, important production capacities were formed, and self-sufficiency in many spheres increased significantly.
In fact, in every country that has doneemphasis on the development of production, which allows the effective replacement of imported goods, over time a serious crisis is fixed. As reasons for such a result, it is necessary to determine the loss of efficiency and flexibility of the economic system, which is caused by the absence of foreign competition.
It is difficult for such countries to take a confident position on the world market due to the lack of locomotive industries that bring the sphere of production to a new level of efficiency and relevance.
As an example, countriesLatin America (Argentina, Brazil, Mexico). These states have managed to diversify the national economy in such a way as to achieve a significant place in the world market. But they still failed to catch up in their level of economic progress developed countries, focused on exports.
An export-oriented model that wasimplemented by the NIS of Asia, can be defined as the most effective and flexible enough. It should be noted that the parallel import substitution, which competently combined with the main scheme of economic development. Surprisingly, as it turned out, two models with different accents can be combined quite effectively. At the same time, depending on the specific period, priority can be given to the most relevant of them.
But the fact remains that beforeas the state moves to the stage of dynamic export expansion, it must undergo import substitution and competently stabilize its interest in the general economic model.
For Asian NIS, developmentlabor-intensive export-oriented industries. Over time, the emphasis shifted to capital-intensive high-tech industries. At the moment, the main goal of such countries within the framework of the current economic strategy is the production of products that can be characterized as science-intensive. In turn, low-profit and labor-intensive production is given to the new industrial countries of the second wave.
Thus, it can be concluded that the economic strategy of a particular industrial country depends on its place in the world market.