A Note of Philosophical Thought on Poverty Reduction through Industrialization
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Mobility of Labour
Protection of Infant Industry
This paper aims to describe the role of industrialization in poverty reduction in any country, especially developing countries, which are mainly based on agriculture.
One of the essential purposes of economics is reducing poverty around the world, and our answer regarding the most effective way to do so is industrialization, which includes related services. Only industrialization offers a shortcut to poverty reduction. A problem left to address is how to achieve industrialization.
As Reinert (2007) pointed out, the primary sector, including agriculture, has a structural problem of decreasing returns to scale, while the other industrial sectors have the characteristics of increasing returns to scale, which is the advantage of industrialization.
The main factors of industrialization include labour mobility, the protection of infant industry, urbanization, the formation of industrial clusters and the prevention of environmental destruction.
IDEC DP2 Series