INDUSTRIALISATION and International

Trade
What is INDUSTRIALISATION ?
 INDUSTRIALISATION is a process of changing economy based on agriculture to one based on
production of goods and the provision of services

For most of history people have depended on agriculture to be their living for some reasons:

1. The production of food has always been necessary for survival and it took so much time and
effort to produce food that there was little time to make goods and create services
2. People do not have ways to manufacture goods and enough quantity and to the required quality
to be able to sell them to a wider market
3. It was only until relatively recently that improvements in technology and transport made it
easier for goods and services to be delivered to other markets

HISTORY OF INDUSTRIALISATION
 Started in Britain in the late 1700s and then spread through Europe and North America.
 Its peak came in the mid-1800s with the invention of the following:
 internal combustion engine
 improvements in the steam engine
 the development of ways to store and use electricity
 and improvements in transport, particularly trains
 This made it easier, cheaper, and more efficient to produce and transport goods.
 In the 1900s, many parts of the world shared the transition from agricultural to industrial
economies
 Luddites were people who were opposed to the industrial revolution and destroyed machinery
and equipment.
 Today, a Luddite is someone who finds it hard to deal with new technology.
 minerals and other natural resources of countries not benefitting from industrilaisation were
used by the industrialised countries to be used as raw materials to boost their own production
and wealth.
 There are four major geographical industrial regions around the world:
1. North America
2. Western and Central Europe
3. Russia and Ukraine
4. Eastern Asia

(IMPORTANT TABLE ON PAGE 50-51)

Economic Globalisation
 Describes the growing interdependence of the world’s economies, cultures and populations
 It is bought about by cross-border trade in goods and services, technology and flow of
investment

(IMPORTANT TABLE ON PAGE 52)

Services industries
 Global economies do not just depend on the production of goods they also depend on service
industries
 This sector provide services to plumbing, laundry, banking, restaurants, accounting and health
care etcetera

Industrial regions of Pakistan

 A country’s wealth is usually measured by its Gross Domestic Product (GDP).
 The GDP is the monetary value of all the goods and services produced within the country.
 In Pakistan, about 20.9% of its total GDP comes from the industrial sector, which means Pakistan
is still very reliant on its agricultural output and its mineral wealth.
 However, Pakistan is a nation transitioning to an industrial economy
 it is classified as a semi-industrial nation.
 Pakistan's largest industry, textiles, is mainly located in Punjab.
 The agriculture sector is large in all provinces of Pakistan except for Balochistan;
 the forestry industry is centred in Khyber Pakhtunkhwa.
 Natural gas and coal mining are major industries in Balochistan, Punjab, and Sindh.
 Cement is mainly produced in Punjab, Sindh, and Khyber Pakhtunkhwa.
 Trade and tourism is a major part of the economy in Gilgit-Baltistan.
 Sindh has the most number of refineries.
 Sindh is also where Pakistan's finance and manufacturing sectors are strongest.

IMPORTANT INDUSTRIES OF PAKISTAN

 In 1947, the agricultural sector contributed more than 50% to its economy.
 Today, this amount is only about 19.3%.
 The reason for this decline is the enormous growth in the industrial and services sectors.
 About half of Pakistan’s workforce is employed in the agricultural sector
 Wheat, rice, cotton, and sugar cane make up a large portion of the crops grown in Pakistan.
 However, a report by the World Bank suggests that Pakistan needs to diversify if it aims to
maintain a strong agricultural sector.
 Although CPEC is focused on energy and connectivity, its main highlight is opportunities for
industrial cooperation.
 A number of special economic zones (SEZs) are planned under CPEC to attract investors.
  The biggest advantage for this SEZ is its proximity to the already functional Industrial City, where
a number of large enterprises(Organizations) are already operating
(IMPORTANT TABLE AND MAP ON PAGE 53)

Industries in other countries of the world

 Germany has the largest economy in Europe

 70% comes from service industries, 29% from manufacturing and 1% from agriculture
 Main exports are motor vehicles and machinery
 Main services are Finance, media and tourism
 Nigeria has the largest economy in Africa
 Oil and Gas are main industries with financial services becoming more important
 Most of the countries population relies on agriculture sector
 Kuwait relies almost entirely oil for good economy
 One danger it has is it has only 1 industry it relies on

The textile industry in Pakistan

 Before industrialisation began, textiles were produced on handlooms
 The main processes involved in a textile industry are spinning, weaving, dyeing, printing, and
finishing.
 Pakistan's textile industry produces natural (cotton, silk, wool) and synthetic (polyester, nylon)
fibres.
 The major textile mills are located in Faisalabad, Karachi, Lahore, Multan, and Gujranwala
 Yarn, fabric, readymade garments, towels, bed linen, etc., are produced by Pakistan's textile
industry.
 It relies heavily on locally-produced cotton, as well as on imported raw materials to meet
domestic and export needs.
 The textile industry of Pakistan faces tough competition in the global market.
 By adopting modern technology and research in this field, it can increase its productivity and
emerge as a prominent textile exporter in the world.

The cotton industry in Pakistan

 The region where Pakistan is located is one of the earliest sites for cultivation of cotton
 Archeologists have discovered cotton seeds dating back more than 7000 years and evidence of
cotton cloth being used more than 4500 years ago in this region
 1.3 million Pakistani farmers produce cotton
 It covers 15% of the countries arable land
 Cotton is so important to Pakistan’s economy and they refer to it as “white gold”
 Most of the cotton is sown from May to august
 Punjab grow ¾ of the cotton in Pakistan
  Most of the rest is grown by Sindh
 Small amount in Balochistan and KPK

Stages of production
 It has 4 main stages of growing
1. Growing and Harvesting
2. Ginning
3. Spinning
4. Weaving
 Harvesting takes place during October and February
 Cotton is often picked by hand, often by women
 Ginning is the process of separating the cotton fibres from the seeds
 First the cotton is dried to reduce moisture
 Then all foreign materials are removed
 The cotton is then pulled through narrow slits which the seeds are to big to pass through
 The cotton is then compressed into a bale
 Spinning is the process of producing yarn from cotton
 It is done by machines in mills
 Spinning involves a machine pulling, stretching and twisting cotton into yarn
 Pakistan produces yarn More than it uses domestically for the betterment of the economy
 Weaving is the process of producing cloth from cotton
 This usually takes place on a loom

Problems faced by the cottons industry in Pakistan

 Cotton requires a great deal of water and the river Indus provides most of the water used for
cotton production.
 However, a growing population and inefficient irrigation practices are making it harder for cotton
growers to get the amount of water they need to continue to grow healthy crops.
 Water pollution and increasing salinity, which result in low annual yields, are also major
problems for growing healthy cotton crops.
 Pests and diseases pose major threats to the cotton industry in Pakistan.
 Farmers need to use timely and appropriate pest control methods to protect their crops.
 Low prices in the local and international markets discourage farmers from growing cotton, and
they cultivate other crash crops instead, like rice and maize.
 Climate change is an issue facing the entire world.
 In Pakistan, it could have a severe effect on cotton production.
 Cotton is a fragile crop, and even small changes to climate conditions can wipe out a season's
crop.

(IMPORTANT CASE STUDY ON PAGE 56)

The cottage industry in Pakistan
 It is a small-scale home-based business
 Valuable part of Pakistan’s economy
 The start up costs are relatively low
 The raw materials required are usually produced and not vey expensive
 Cottage industries give people an opportunity to set up their own businesses and and create
jobs for others

Examples of popular cottage industries in Pakistan are:

1. Blacksmithing
2. Carpentry
3. Carpet wearing
4. Ceramics
5. Handwoven textiles
6. Leather production
7. Metal work
8. Jewellery making, particularly with gold and silver

Advantages and Disadvantage of Cottage

industries
 They employ more than half the people working in the manufacturing sector
 Keep alive many traditions for example Ceramics, Jewellery making and carpet wearing
 Help isolated areas remain economically stable

 Local economies cannot grow to its full potential through cottage industries alone
 Lack of standardisation and quality control that makes it hard to sell goods
 Unreliable energy supplies
 Few training and career opportunities for workers, and a lack of regular income