The case for industry

Some economists argue that there can be no modernization without industrialization, trig emphasis should be put on industry rather than agriculture. Several arguments have been advanced in support of this.

Industrial growth creates demand for agricultural output. This is possible if the country has a large domestic market as well as export markets.

Industrial development is more intercomplementary than agriculture at all levels of production, rather than the demand for final products, therefore, investment r- industry and industrial growth would tend to have more forward and backward linkages with other industries than investment in agriculture.

Growth of industries expands employment. However, depending on the production techniques adopted i.e. if it is labour intensive technique c production.

In poor countries, the required skills needed for production purposes are still inadequate. Industrial growth develops skills.

The growth of the industrial sector in LDCs tends to stimulate the development of social services and other forms of basic infrastructure.

Industry with its range (variety) of products increases economic flexibility.

Unlike agriculture which is prone to natural changes, industry is not threatened by nature, hence the demand for consumer goods may not be altered.

Industrial growth being export oriented relieves LDCs of the B.O.P problems. Unlike agricultural products which are of low income elasticity of demand manufactured goods can prove more competitive on the world market.

Capital accumulation can result from savings on wages and surplus from industry.

With industrial growth, frequent fluctuation in prices and incomes (common in agriculture) can be minimized. This encourages stabilities in incomes thereby increasing taxable capacity for government revenue.