Strategies in industrial development

In LDCs, industry can be developed through several strategies. This may include labour intensive, capital intensive, intermediate technology, appropriate technology, smallscale, largescale production, import substitution, export promotion depending on what can attain what is targeted. In all, industrialisation involves the following:

1.       Expansion and modernisation of the entire manufacturing sector a:
contribution to the total national output.

2.       Absorption of the existing redundant (excess) labour force especially fro agricultural sector of the national economy.

3.       A rise or increase in the potential labour productivity within the n economy.

4.       Elimination or complete eradication of simple industrial production activities.

5.       Massive industrialisation programmes in the agricultural sub-sector.

6.       Provision and attainment of the urgently needed machinery and machine for industrialisation.

7.       An urgent growth, improvement and development of intercomplementally i.e. input - output connection (linkage) within the manufacturing sector of industrial production.

8.       A considerable degree of limited dependence on primary agricultural output. However, it should be noted that the appropriate possible industrial development strategies for developing countries should include among others:

9.       Intercomplimentality within the industrial sector i.e industrialisation through forward and backward linkages.

10.    Various tools of protectionism for example, import tariffs, import subs - foreign exchange control and regulations to protect the domestic industries, etc.

11.    A vigorous campaign to expand the domestic consumer markets, establishment and expansion of several consumer goods industries.

12.    Infrastructural development. This would involve the establishment, development and improvement of infrastructural facilities, overhead social capital including transport, communications, electricity, etc; to encourage the establishment and expansion of some of the existing smallscale industries.

13.    Establishment, expansion, and promotion of industries basically for the outside market (export promotion industries) which may result from a massive import substitution industrial development strategy.

14.    Utilization of the current profits that can be ploughed back to stimulate the production of capital goods and equipment.