What conditions are necessary for industrialization to occur?

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mrkirschner eNotes educator| Certified Educator

An industrial revolution is a change in economic and social conditions marked by a significant increase in manufacturing and urbanization. There are a number of conditions necessary to spawn an industrial revolution. First, advances must be made in agriculture that makes crop production more efficient. These conditions could be climactic, scientific, or mechanization of machinery. With a more efficient system of farming, a surplus of laborers is created that may used in the factories.

Another factor that can help the labor supply is an increase in the population. This can naturally occur when the food supply increases, but other factors can contribute to population increases. Medical advances that improve infant mortality or allow people to live longer can increase the population. A sustained period of peace can also allow population growth.  With a larger population, you also create a larger market for manufactured goods. 

An interest in developing new technologies in a culture can also allow for industrialization. New machinery to make production more efficient is usually the first step. Improvements in transportation are also very important and capital must be available to develop a transportation network. These innovations can be enhanced with a stable and democratic government system. Another factor for industrialization is that there are raw materials available to be used for production. When all of these factors are met, a nation may become a successful industrial power.

thetall eNotes educator| Certified Educator

Additionally, there is a need for entrepreneurship to take root in the region for industrialization to be achieved. Entrepreneurs and investors should be ready and willing to improve their processes in order to produce more goods and services and enjoy economies of scale by increasing the size of their operations and making them efficient.

Transport and related infrastructure such as roads, ports, and railways should be developed to ensure there is adequate movement of raw materials, finished goods, and labor. Transport improves access to different regions and helps fuel the need for increased production.

The availability of funds in the form of capital is also an important aspect of industrialization. Financial institutions should ensure there is access to capital at suitable rates to entrepreneurs. Access to loans with competitive interest rates will likely attract entrepreneurs to engage in industry.

The availability of raw materials also serves as an important precondition for industrialization to occur. Locally sourced raw materials make the process cheaper for industrialists, which motivates them to engage in the process.