What are the strategies for industrial development?

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thanatassa | College Teacher | (Level 3) Educator Emeritus

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There are various strategies which may enhance the climate for industrial development in different countries. An increasing emphasis in policy discussions is sustainable development; this is particularly important as the least developed nations are the ones likely to be most heavily impacted by climate change. Strategies for enhancing industrial development include:

  • Protectionism: Erecting trade barriers to protect nascent industries from global competition can facilitate industrial development, but (1) may lead to retaliatory tariffs and (2) can lead to the development of high-priced goods and inefficient industries.
  • Infrastructure development: Most industries rely on infrastructure such as transportation and power grids. A country striving toward industrial development should invest in these, or industries will choose to locate in other places with better infrastructure.
  • Education: Modern industries rely on the use of skilled labor, and thus investment in education pays off by creating an appropriately skilled workforce.
  • Regulatory Environment: The regulatory environment, including amount of corruption and ease of doing business, can be a help or hindrance to industrial development.
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