Problem

Inappropriate industrialization in developing countries


Experimental visualization of narrower problems
Other Names:
Counterproductive capitalist industrialization
Nature:
Although capitalism claims to be the best means of promoting industrial production, its inherent instability and elitist traits have severe adverse effects on developing countries, and complicate and retard the road to progress. These effects are the result of the capitalist profit motivation for production (instead of necessity-motivation), combined with the creation of an artificial non-productive property-owning class and the complicating double role of money and commodities on a sophisticated world wide scale. Capitalist industrialization in developing countries began under colonial rule and continues in the same way as a means of economic imperialism, (for example, the major profits return to the investor). This leads to debt and puts the country under the effective control of its 'benefactor'. Foreign capitalist industrialization tends to use over-sophisticated technology for which there is little or no suitable labour in the developing countries. Therefore much of the labour is also imported and the industry does nothing to alleviate unemployment, which increases from a neglect of agriculture and concentration on industrialization or urbanization problems caused by migration towards industrial centres. Prestige 'growth' of this kind encourages nationalism and competition with other developing countries, when it would be more to the benefit of the developing countries to cooperate, consolidate their position, and exploit the advantages they have as producers of essential base products against their deficit of technological expertise and commercial and financial strength in relation to the developed countries. The industrialized countries have a vested interest in investing in developing countries, but in so doing they also create eventual competitors. They therefore seek increasingly sophisticated methods of control so that they can maintain the gap between themselves and the 'third world'. However, in creating an industrialized society from feudal agricultural ones, they also create a proletariat which will become increasingly aware of its exploitation and will subsequently retaliate either with revolution, guerrilla warfare, or terrorism.
Strategies:
Developing industry
Problem Type:
F: Fuzzy exceptional problems
Related UN Sustainable Development Goals:
GOAL 12: Responsible Consumption and Production
Date of last update
01.01.2000 – 00:00 CET