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Industrialization and Economic Development
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​a place where products are sold
industry
Market
cottage industry
raw materials
​small home-based businesses that make goods
cottage industry
industrial belt
rust belt
industry
a place where products are sold
small home-based businesses that make goods
starting in the 18th century, a series of technological advances
land that stretched across the midlatitudes of the Northern Hemisphere. It includes the northeastern & midwestern United States, much of Europe, part of Russia, and Japan
a process of decreasing reliance on manufacturing jobs
the process of using machines and large-scale processes to convert raw material into manufactured goods
the basic substances such as minerals and crops needed to manufacture finished goods
extracting natural resources form the earth
creating information and making high level decisions
making products from natural resources
managing and processing information
the potential of a job to produce additional jobs
businesses that can pack up and leave for a new location quickly and easily
an influential theory that explains the key decisions made by businesses about where to locate factories
the spatial grouping of several businesses to share costs, such as access road to a public highway or development of a workforce with special skills
copper is embedded in heavy rock when first mined, but it loses bulk as it is processed
the heaviest part of a soft drink is water. Companies try to add it as close to the market as possible
a company that is highly dependent on a workforce and will want to be near a source of those workers
the procedure of transferring cargo from one mode of transportation to another
containers that can be carried on a truck, train, ship, or plane
the system in which goods are loaded into a standardized shipping unit
to signal its prominence and wealth, a corporation might want to locate its main office for its top executives on the expensive upper floors of a skyscraper in a large city
a company might decide to locate the rest of its employees in less expensive office spaces
housekeeping
research
forestry
manufacturing
financial analysis
over the past four decades in Flint, Michigan, General Motors has shut down several plants. Far more people than just GM workers lost their jobs. This is an example of
Economy of Southeast Asia Even prior to the penetration of European interests, Southeast Asia was a critical part of the world trading system. A wide range of commodities originated in the region, but especially important were such spices as pepper, ginger, cloves, and nutmeg. The spice trade initially was developed by Indian and Arab merchants, but it also brought Europeans to the region. First the Portuguese, then the Dutch, and finally the British and French became involved in this enterprise in various countries. The penetration of European commercial interests gradually evolved into annexation of territories, as traders lobbied for an extension of control to protect and expand their activities. As a result, the Dutch moved into Indonesia, the British into Malaya, and the French into Indochina. Europe’s interest and activity in the region was further enhanced by the opening of the Suez Canal, the development of telegraphic communications, the adoption of steam shipping, and the prospects for trade with China. In the case of Malaya, the gradual diffusion of British administration provided systems of law and order and of taxation and allowed for the gradual development of infrastructure, principally reliable transport systems. This environment attracted Chinese immigrants, and the growth of the tin mining industry soon followed. Later rubber plantations were established, which brought about still further immigration. Similar developments took place in Burma (Myanmar), Vietnam, and Indonesia. In Siam (Thailand) during the second half of the 19th century, a rapid expansion of Western enterprise occurred, though not by colonization. Both British and American firms began trading in the region. The impact of the Western activity was essentially to remove trade from what had been a Chinese monopoly and to emphasize the export of a single commodity, rice. Established indigenous textile and sugar-processing industries were replaced by imports, and the economy slowly became dependent on rice exports. The Philippines gradually developed a plantation farming system under Spanish and later American influence, although rice, sugar, and tobacco continued to be produced by small-scale growers and processed by Chinese enterprises until the mid-19th century. The incorporation of Southeast Asia into the world economy had a major impact on the distribution of the region’s economic development, and it created more uneven patterns of population growth and economic activity. It also brought about a stronger sense of class distinction and resulted in a larger discrepancy between the wealthy and poor. The worldwide economic depression of the 1930s severely affected the commercialized areas most dependent on the world economy. Unemployment rose, and the period produced the seeds of political change and activism that culminated in the independence of most of the region’s countries after World War II. Since the 1950s the economic development strategies of virtually all the capitalist Southeast Asian states have emphasized urban industrialization, while agricultural development generally has been viewed as subsidiary to industrial growth. These strategies have met with mixed success. Indeed, the trading pattern of the region by and large has continued to be one of producing and exporting raw materials and importing manufactured goods. Only Singapore has reached an advanced level of industrialization, in the process becoming one of the world’s great centers of industry and commerce. There is great disparity in development rates within the region, especially between the member and nonmember countries of the Association of Southeast Asian Nations (ASEAN). Those belonging to this grouping—Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand—generally have experienced significant economic development since the mid-1960s; the exception has been the Philippines, the economy of which has grown at a much slower rate. Development has been extremely slow or nonexistent in the non-ASEAN countries of Cambodia, Laos, Myanmar, and Vietnam, and these are among the poorest nations in the world.President Xi Jinping, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, visits Luoyang Bearing Group Co on Monday afternoon during his inspection of Luoyang, Henan province. During the visit, Xi called for continuous efforts to make the manufacturing industry even stronger to advance Chinese modernization. YAN YAN/XINHUA President Xi Jinping has stressed the importance of keeping businesses, employment, the market and expectations stable in the face of a complex international environment, saying that China will respond to various uncertainties with the certainty of its high-quality development. Xi, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made the remarks on Tuesday as he wrapped up a two-day fact-finding trip to Central China's Henan province. Speaking to provincial Party and government officials at a work briefing on Tuesday in Zhengzhou, the provincial capital, Xi said that high-quality development is essential to Chinese modernization. Faced with the complex external environment, it is necessary to firm up confidence, unwaveringly manage China's own affairs well, and steadfastly expand high-level opening-up, he said. He also urged Henan, one of the country's economic powerhouses, to further consolidate the foundation of its real economy, and promote the development of new quality productive forces suited to local conditions and led by technological innovation, in order to enhance the capacity of its modern industrial system to support high-quality development. When visiting Luoyang Bearing Group Co in the city of Luoyang on Monday, Xi said: "China has always adhered to the path of developing the real economy. From the past reliance on imported matches, soap and iron, to now becoming the world's largest manufacturing country with the most complete industrial categories, we have taken the right path." As a traditional manufacturing enterprise specializing in bearings, Luoyang Bearing Group's products are widely used in fields such as aerospace, construction machinery, wind power generation, rail transit, port machinery and ships. After learning about the company's efforts to accelerate the development of advanced manufacturing, Xi said that China must continue to strengthen the manufacturing sector, adhere to the principles of building self-reliance and strength, and master core technologies in key fields. "The hope is placed on you," he told the on-site workers. He also called for efforts to strengthen collaboration between industries, universities and research institutes, and cultivate a large number of high-quality talent. Despite internal challenges and increasing external shocks, China's manufacturing industry has withstood pressure and maintained stable growth. In April, the manufacturing sector saw its value-added output climb 6.6 percent year-on-year, with that of equipment manufacturing and high-tech manufacturing up 9.8 percent and 10 percent, respectively, according to data released by the National Bureau of Statistics on Monday. Advanced manufacturing is the high ground in global industrial competition and the main battlefield for technological innovation. Xi has repeatedly emphasized the need to upgrade the country's modernized industrial system, supported by advanced manufacturing. In a resolution adopted at the third plenary session of the 20th CPC Central Committee in July last year, it was clearly stated that China will move faster to advance new industrialization, promote the growth and expansion of advanced manufacturing clusters, and make the manufacturing sector higher-end, smarter and more eco-friendly. On Monday, Xi also visited the White Horse Temple, the first Buddhist temple in China, and the Longmen Grottoes, a UNESCO World Heritage site. Contact the writers at mojingxi@chinadaily.com.cnKey Word Definition
Aid Assistance in the form of grants or loans at below market rates. For example, the UK provided aid to Nepal after the 2015 earthquake to help with reconstruction efforts.
Barriers to Trade Government constraints on the flow of international goods and services, such as tariffs and quotas. For example, the European Union imposes tariffs on certain agricultural products to protect its farmers.
BRICS An acronym for an association of five major emerging nations: Brazil, Russia, India, China, and South Africa. For example, BRICS nations often meet to discuss economic cooperation and development strategies.
Demographic Aging The rise in the median age of a population. For example, Japan is experiencing demographic aging, with a significant increase in the elderly population.
Economic Core Region The most highly developed region(s) in a country. For example, London is considered an economic core region in the UK due to its high level of development and economic activity.
GNP (Gross National Product) GDP plus overseas earnings, also known as GNI (Gross National Income). For example, the GNP of the United States includes the value of goods and services produced domestically and the income earned by its citizens abroad.
HIC (Higher Income Country) A country with a high level of income and development. For example, Germany is classified as a higher income country due to its high GDP per capita and advanced infrastructure.
NEE (Newly Emerging Economy) A country that is experiencing rapid economic growth and industrialisation. For example, China is an example of a newly emerging economy, having rapidly industrialised and grown economically over the past few decades.
LIC (Lower Income Country) A country with a low level of income and development. For example, Malawi is considered a lower income country, with a low GDP per capita and limited access to healthcare and education.
GDHI (Gross Disposable Household Income) The amount of money that households have available for spending and saving after taxes and social contributions. For example, in the UK, the GDHI varies significantly between regions, with London having one of the highest levels.
Gini Coefficient A measure of income inequality within a population, ranging from 0 (perfect equality) to 100 (perfect inequality). For example, South Africa has a high Gini coefficient, indicating significant income inequality within the country.
Trade Unions Organisations that promote trade between member countries, such as the East African Community (EAC). For example, the East African Community (EAC) works to promote economic integration and trade among its member states.
Fair Trade A movement aimed at helping producers in developing countries achieve better trading conditions and promote sustainability. For example, Fairtrade coffee ensures that farmers receive a fair price for their product and work under safe conditions.
FDI (Foreign Direct Investment) Investment made by a company or individual in one country in business interests in another country. For example, Toyota's investment in manufacturing plants in the UK is an example of foreign direct investment.
Debt Relief The partial or total remission of debts, especially those owed by developing countries to external creditors. For example, the Heavily Indebted Poor Countries (HIPC) initiative provides debt relief to eligible countries to help them achieve sustainable development.
International Aid Voluntary transfer of resources from one country to another, often in the form of financial assistance, goods, or services. For example, the UK provides international aid to various countries through its Department for International Development (DFID).
Top-Down Development Large-scale development projects led by national governments or international organisations. For example, the construction of the Three Gorges Dam in China is an example of a top-down development project.
Bottom-Up Development Small-scale development projects led by local communities or NGOs, focusing on the needs of the poorest and most vulnerable. For example, WaterAid's installation of hand pumps in rural villages in Africa is an example of a bottom-up development project.
Urbanisation The increase in the proportion of people living in urban areas compared to rural areas. For example, rapid urbanisation in India has led to the growth of megacities like Mumbai and Delhi.
Geopolitics The study of the effects of geography (human and physical) on international politics and relations. For example, the geopolitics of the Arctic region involves disputes over territorial claims and access to natural resources.
Quality of Life The general well-being of individuals and societies, outlining negative and positive features of life. For example, Scandinavian countries are often ranked high in quality of life due to their strong social welfare systems and high levels of happiness.
Poverty Cycle A set of factors or events by which poverty, once started, is likely to continue unless there is outside intervention. For example, lack of education and healthcare can trap families in a poverty cycle, making it difficult for future generations to improve their living standards.
Sustainable Development Economic development that is conducted without depletion of natural resources. For example, the use of renewable energy sources like wind and solar power is a key aspect of sustainable development.
Humanitarian Aid Material or logistical assistance provided for humanitarian purposes, typically in response to crises including natural disasters and man-made disaster. For example, humanitarian aid was provided to Haiti after the devastating earthquake in 2010 to help with immediate relief efforts.
Economic Growth An increase in the production of goods and services in an economy over a period of time. For example, China's economic growth over the past few decades has lifted millions of people out of poverty.
Social Indicators Measures that describe the well-being of individuals or communities, such as health, education, and income. For example, life expectancy and literacy rates are common social indicators used to assess development.
Environmental Sustainability Responsible interaction with the environment to avoid depletion or degradation of natural resources and allow for long-term environmental quality. For example, practices like recycling and conservation of natural habitats contribute to environmental sustainability.
Infrastructure The basic physical and organisational structures and facilities needed for the operation of a society or enterprise. For example, good infrastructure, such as roads, bridges, and schools, is essential for economic development.
Globalisation The process by which businesses or other organisations develop international influence or start operating on an international scale. For example, the globalisation of technology companies like Apple and Google has led to their products being available worldwide.
Microfinance Financial services provided to low-income individuals or groups who are typically excluded from traditional banking. For example, microfinance institutions like Grameen Bank provide small loans to entrepreneurs in developing countries to help them start or expand their businesses.
1.1945-1949: The immediate years after the Second World War ● At the end of 1945, Mao Zedong had come to see the USA as the greatest threat to his aspirations. a. He understood that East Asians were looking to the USA as the true liberator from Japanese imperialism. b. The USA’s support for the Kuomintang(KMT) and the restoration of U.S. authority in formerly Japanese Manchuria clashed with the CCP’s plans to use the region for its own needs in the impending civil war between the CCP and the GMD. ■To compound matters, while the KMT was recognised internationally as the official government in China, Mao and the CCP saw the party as a puppet of U.S. imperialism. ● While Mao saw the USA as the greater threat to the CCP’s plans, Soviet actions also frustrated him. a. The USSR provided minimal and incoherent support for the Chinese Communists in Yan’an and Manchuria. b. Stalin also attempted to extract territorial and economic concessions from the Guomindang government in the Friendship and Alliance Treaty China signed in August 1945 under American and Soviet pressure in exchange for Soviet entry into the Second World War against Japan. ● The emerging superpower conflict over Europe and over American intervention in the impending civil war in China led to Mao’s ideological perception of the 8838/01 H1 History Paper 1 Theme II: The Cold War and East Asia (1945-1991) \ Page | 8 USA as an aggressive imperialist power that was hostile towards other countries, especially the USSR and China. ● In 1946, Mao promoted the theory of the intermediate zone, which envisioned a global united front against American imperialism. a. Mao saw the emerging superpower conflict as an American-Soviet contest for the intermediate zones, the capitalist, colonial and semi- colonial countries of West Europe, Africa, and Asia. b. Mao believed that the USSR was the defender of world peace. c. The intermediate zone, which included China, would not be part of the socialist camp. d. Despite the tremendous potential that U.S. aid held for China’s reconstruction, Mao’s ideological worldview and the impending civil war against the Guomindang prevented him from seeking normalised relations with the USA. In 1949, Mao decided to lean towards the side of the USSR despite two decades of unreliable support from them. e. Mao saw the anti-bourgeois campaigns in East Europe as evidence that China should isolate capitalist-bourgeois forces within it.2 f. Stalin had expelled Yugoslavia from the socialist camp as its leader, Tito was seen to have directly challenged Stalin’s authority. ■Mao thus saw it as imperative to stress close unity to the USSR lest he was seen as a second Josip Broz Tito. At the same time, Mao sought a loose partnership with the USSR because Mao believed that China should preserve a high measure of self- reliance and zili gengsheng (自力更生) (regeneration through one’s own efforts). ● When the People’s Republic of China was formed on 1 October, 1949, relations between China’s and the USSR’s communists had improved substantially. a. However, the Chinese Communist Party (CCP) was also aware that the USSR never treated Chinese interests as a priority. What the CCP failed to fully understand was that Stalin ruled East Europe much like it was his empire and how this would have implications for China. b. In Mao’s first visit to the USSR in December 1949, Stalin was non- committal regarding the interests raised by the Chinese, and treated Mao as an underling as he feared that closer relations with the PRC would cause the USSR to lose privileges gained from the KMT. _________________________ 2 What Mao did not realise at that point was that the anti-bourgeois campaigns in East European countries were part of Stalin’s intentional design to consolidate the power of communists in them. 8838/01 H1 History Paper 1 Theme II: The Cold War and East Asia (1945-1991) \ Page | 9 A note on Sino-American relations 2. Early 1950: The USA’s hands-off policy towards Taiwan begins to change ● By early 1950, the Truman administration had written off Taiwan and believed it was only a matter of time before the island fell to the PLA. ● Two events in early 1950 changed the USA’s position on East Asia. ○ The formation of the USSR-PRC alliance in February 1950 ○ The North Korean invasion of South Korea in June 1950 3. 1950: The Sino-Soviet Friendship, Alliance and Mutual Assistance Treaty ● Signed on 14 February, 1950. 3.1Implications for Sino-Soviet relations ● Stalin saw it as a means to get concessions that he had failed to get from the Kuomintang (KMT) government in 1945. ● For Mao and the newly founded People’s Republic of China (PRC), the alliance would provide security against U.S. imperialism and allow the PRC to get economic aid for reconstruction from the USSR. ● The Chinese realised soon after the 1950 treaty had been signed that the Soviet Union was intent on exploiting the agreement in its own favour. 8838/01 H1 History Paper 1 Theme II: The Cold War and East Asia (1945-1991) \ Page | 10 ● The Sino-Soviet alliance was officially directed against Japanese militarism and its allies, especially the USA. ● The Sino-Soviet alliance comprised three elements: party, military and economic relations. ○ Party: The Chinese Communist Party (CCP) was included in the customs of communist party internationalism, such as regular exchange of party delegations to congresses of the fraternal parties in Stalin’s socialist camp. ■This move was meant to bring the PRC’s ideological beliefs about communism into greater alignment with the USSR’s. ○ Military: The alliance was supposed to provide the newly formed and weak PRC with a strategic deterrent and military aid against the USA on three fronts: Guomindang-held Taiwan, divided Korea, and Vietnam where France attempted to reestablish its colonial control. ■Convinced that the USA would aggressively seek ways to undermine the CCP-led PRC through Taiwan, Korea and Vietnam, Mao sought an active defence. ● While in Moscow, Mao unsuccessfully asked Stalin to provide military assistance for the liberation of Taiwan. ● At the beginning of 1950, the PRC delivered large-scale military aid to Hanoi. The PRC was the first country to grant the communist-led Democratic Republic of Vietnam diplomatic recognition on 18 January 1950; Mao persuaded Stalin to do so on 30 January 1950. ● The PRC committed itself to North Korea, where Mao saw the commitment to North Korea both as a defence against U.S. imperialism and as support for a fellow communist country. ○ Economic: During Mao’s first stay in Moscow, Stalin had personally promised the delivery of fifty projects for primary industrialisation. ■The agreement also led to a series of supplementary ones, such as a US$ 300 million loan that the PRC would repay with a mixture of strategic materials, rubber, agricultural products, goods for daily use and hard currency. ■Significantly, Stalin used Soviet military and economic aid to extract concessions similar to those he failed to get from the Guomindang government in 1945. ■The USSR and PRC would disagree on the pace and extent of the PRC’s planned development. ● In the last five weeks of Stalin’s life in early 1953, he attempted to pressure the PRC to reduce the planned 8838/01 H1 History Paper 1 Theme II: The Cold War and East Asia (1945-1991) \ Page | 11 development speed to a mere annual growth of 13-14 percent, and to plan individual projects in detail beforehand. These moves would potentially result in the PRC’s economy growing at a slower rate than initially projected. ● However, after Stalin’s death on 5 March 1953, the PRC’s Zhou Enlai decided to use his visit of condolence to the USSR to press forward negotiations. ○ When talks resumed in 1 April 1953, Beijing pressed for 150 Soviet industrial projects, but Moscow reduced them to 91 on the basis of insufficient data provided by the Chinese. ■The economic disarray after China’s civil war and the economic pressures that came with the Korean War influenced recovery and reconstruction in the early years of the PRC. ● Despite the PRC being unable to tap into Soviet economic assistance immediately, mutual trade between China and the USSR nevertheless increased 6.5 times from 1950 to 1956. ● Together with the 50 projects promised by Stalin in 1950, the final version of the First FYP for the PRC included 141 Soviet and 68 East European projects in a total of 649 planned. Three thousand Soviet advisers sent to China in subsequent years were directly linked to the First FYP. ● By 1955, over 60 percent of China’s goods exchange was with the USSR. ● Soviet economic assistance to China added up to the largest foreign development venture in the socialist camp ever. ○ The total number of planned projects amounted to between 300 and 360 projects. ○ However, the number of total finished projects ranged between 134 and 150. ● Transfers of knowledge and expertise were important to China’s economic development. ○ A study on Soviet experts counts 1,445 political advisers and 9,313 technical specialists sent to China until their sudden withdrawal in mid-1960. ■For political reasons, the gradual withdrawal of advisers began after late 1956.Unit 7 Economics and Industrialization Vocab QuizIndustrialization and Urbanization- Unit 9Industrialization and NationalismIndustrialization and Imperialism