Industrialization

IndustrializationThe process in which a

Agricultural Manufacturing

transforms from

Society or country

Individual Labor

REPLACED BY

SignificanceProvides market to other sectors

Industry

Market

Primary sectorTertiary sector

Simply put, industries buy raw materials from the primary sector and services from the tertiary one.

Provides inputs to other sectors

Industry

Agriculture:

INPUTS

Tractors Fertilizer Chemicals

Other sectors:

MachineryOil

Steel

Provides consumer goods to other sectors

Creates employment opportunities

Conserves and earn foreign exchange

Facilitates technological change

Facilitates invention and innovation

Utilization of resources

Stages of Industrialization

According to Walt Whitman Rostow

Traditional Society

Transitional Stage

Take off stage

The Five Stages of Growth

Drive to maturity

Stage of Mass Consumption

Traditional Society

This stage is characterized by a subsistent, agricultural based economy, with intensive labor and low levels of trading, and a population that does not have a scientific perspective on the world and technology.

Transitional stage

Change of society’s attitude

Adaptability of labor force Development of financial institutions

Take-off stage

Greater urbanization

Urban labor force increases

Drive to maturity

Period of Self-sustained growth

Industries is diversified and increases

New ones take over

Agricultural and other rural engagements declines

Stage of Mass Consumption

Growing demand for additional consumer goods and services

Consumption basket of the people increases

More consumption of luxuries and high styles of living

Industrialization: First world and Third world

Highlights

The World Bank expects the Philippine economy to grow at 6.5 percent in 2015 and 2016 despite a weak global economy

Growth forecast was revised for 2014 to 6.0 percent from 6.4 percent, owing to slower government spending and lower farm production.

The economy can grow beyond 6.5 percent if the government can fully utilize its budget as planned and accelerate reforms.

Philippine Economic Update – January 2015 Edition

Philippines Industrial Production 1986-2015

Industrial Production in Philippines decreased 6.90 percent in July of 2015 over the same month in the previous year. Industrial Production in Philippines averaged 8.95 percent from 1986 until 2015, reaching an all time high of 68.60 percent in April of 1988 and a record low of -26.60 percent in January of 2009. Industrial Production in Philippines is reported by the National Statistics Office of Philippines.