Industrialization

Industrialization
The process in which a

Society or country
transforms from

Agricultural

Manufacturing

Individual Labor
REPLACED BY

Significance
Provides market to other
sectors

Industry

Primary sector
Tertiary sector

Market

Simply put, industries buy raw materials from the

primary sector and services from the tertiary one.

Provides inputs to
other sectors
Industry

INPUTS

Agriculture:

Tractors

Fertilizer

Chemicals

Other sectors:

Machinery

Oil

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
The Five Stages of Growth
Traditional Society

Drive to maturity

Transitional Stage

Stage of Mass Consumption

Take off stage

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 societys 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

Philippine Economic Update January 2015 Edition

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.

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.