The concept and stages of industrialization (Industrial revolutions) (3)

Industrialization is a concept that expresses the positive changes that occur over time in the basic indicators of a country's economic system such as industrial production, employment, production scale, capital intensity and technological development. When we look at the experiences of industrialized countries, we know that there is no single development method, as we have stated in the development theories that we have covered in our previous articles, and that there is no single industrialization process or method. Industrialization processes intertwined with development; It leads to radical changes in the economic, social, political and even cultural structures of societies.

Today's development; It is a generally accepted situation that it can be realized primarily through industrialization. Industry, which is described as the engine of economic growth; It covers all production activities that turn raw materials and semi-finished products into finished products by using labor and capital from production factors.

It is a fact that emerges in the light of historical data that industrial production with a higher added value compared to agricultural production should be preferred for development in order to ensure social development and achieve as much higher level of welfare as possible for all individuals in the society. In general terms, in today's world, industrialized/developed society and modern society structure, even the phenomenon we call civilization, are seen as equivalent.

Transitioning from traditional social order to modern social life means structural transformation/change. This structural transformation; In addition to the industrialization phenomenon, factors such as agriculture, migration and urbanization, education, property structure, incentives, trade policies, technology are also included.

Within the scope of development and industrialization, the developments recorded in the industrial revolutions that took place in the historical flow still serve as a kind of roadmap for underdeveloped or developing countries. This situation emerges when we look at the industrialization processes in the historical perspective, without making reference to the modernization theory, one of the development theories. Industrialization, which started in the real sense of today's England, has passed through some stages and reached the level of our age, and the journey of industrialization continues uninterruptedly. The stages in the aforementioned industrial production process show us the foundations of the point where today's industry has reached, by going through four major stages called "revolution".

The industrial revolutions are summarized in the following lines with the dimension of the basic production processes on a periodic basis:

First Industrial Revolution

It is the period that started in England in the 1760s, spread to Europe and the USA in a short time and continued until the 1830s. Production has moved from body power to machine power. Production techniques such as Watt's steam machine, Wilkinson's boring machine loom, textile spinning machine, weaving loom, in short, the factory system emerged.

Second Industrial Revolution

Since the 1840s, the use of electrically operated machines in production introduced electricity to factories, and mass production possibilities increased rapidly. Assembly lines have been accepted everywhere. Thus, the mass production of the cars, which Henry Ford called the T-model, on assembly lines, and consequently low-cost production became possible. Based on this production model, the second industrial revolution is also defined as the "Fordist" period.

Third Industrial Revolution

With the use of computer (digital) and communication technologies in production processes since the 1950s, technological tools have entered every field. Computers, digital products and solutions, and the internet take the lead in the third industrial revolution.

Fourth Industrial Revolution

Since the 2010s, the internet of things, big data, robots, automation technologies, etc. Smart factories have started to be used in production. As a result of production based on robotization and automation, Industry 4.0 smart technologies paved the way for production in cheap and single numbers.

Conclusion

An effective industrialization process requires a lot of resources. For this, it is necessary to achieve economies of scale (to switch from the same product to mass production, to reduce the unit product cost as a result of a large number of production, to be able to produce more cheaply). A long learning curve is required for this level of industrial competence and competence. For this reason, those who work in the field of industry try to wait for their investments to bear fruit in the short term, think long-term and strive to progress in a systematic process.

The development path to be followed by underdeveloped countries is considered together with industrialization strategies within the framework of development theories. The investments envisaged to be realized within the borders of a country are a kind of engine of the industrialization strategies to be followed. The question of whether the industry will produce for foreign markets or for the domestic market reflects the industrialization strategies and basic development philosophies that underdeveloped countries will follow on the path of development.

every country Industrialization strategies, which must determine their own realities, are examined under three headings in the literature:

1. Import Substitute Industrialization Strategy (inward-looking, domestic market-based growth).

2. Export-Based Industrialization Strategy (external, integration with foreign markets).

3. Baby Industries Strategy (growth in a selected industry).

Note: In our next article, we will focus on the “import substitution industrialization strategy”.

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