Industrialization Essay Example | Topics and Well Written Essays - 1250 words

Industrialization - Essay Example Development is a vast phenomenon that involved more than increasing per capita output. Real development can only be harbingered by eliminating poverty, unemployment and inequality. The theory calls for reviewing structural issues like dualism, population growth, inequality, urbanization, agricultural transformation, education, health, unemployment and many other unanswered issues that must be reviewed on their own merits, and not merely as appendages to an underlying growth thesis. Industrialization on the other hand is a process of social and economic change where human societies are transformed from a pre-industrial (an economy where the amount of capital accumulated is low) to an industrial state. (Industrialization). This social and economic change is closely related to the technological innovation, particularly the development of large-scale energy production. Industrialization may also be related to some kind of philosophical change, or may be to a different attitude in the perception of nature, though if these philosophical changes are caused by industrialization or vice-versa is a subject often debated. Industrialisation has generated its own health problems, like noise, air, water pollution, malnutrition, dangerous machines, impersonal work, isolation, poverty, homelessness, and even substance abuse. Health problems in industrial nations are caused by economic, social, political, and cultural factors also. Industrialisation has become a major medical issue around the world, and hopefully will become less of a problem over the period to come. Psychology of Soviet Economists: Soviet economists were primarily of the opinion that those factors of production that are relatively plentiful have a low marginal productivity and hence a low price as compared with factors that are relatively scarce. Consequently those lines of production or those technical forms of production, which use relatively more of the plentiful factors and economize on the scarce ones, would have the lowest costs. This lead to a drop in labor rates, as a country like Russia had more labor. The strength of the above mentioned factor theory is undoubtedly its strong appeal to common sense, it is apparent common sense to adapt your development plans and methods so as to make the most use of those economic factors that are most plentiful, like labour in this particular case, but there can be a humanitarian argument added to it that to do this will create the maximum employment in conditions where there is a large reserve of unemployed. The immediate objection to it that strikes the mind is th at the factor proportion theory, in common with any comparative cost doctrine derived from it, is a static theory, which refers to a particular factor endowment at a given date. It will be inappropriate to derive there from a criterion of development, since we are dealing with dynamic situations, where the factor endowment is subject to change the essence of development for example, is a growing accumulation of capital and hence a change in the capital-labour ratio. ( Dobb Maurice, Was Soviet Method of Industrialization Really Contrary to Economic Principles) The choice between the factors of production depends on the