Chapter 19.2, Problem 4R

To determine

To discuss the factors that hinder the process of industrialization of a country.

Explanation of Solution

Following are the two factors that prevent countries from becoming industrialized.

1. Infrastructure: It refers to the key elements that enhance productivity of a nation. It is classified into two categories viz economic and social infrastructure. Economic infrastructure includes power, communication, transportation etc. which directly contributes to the level of productivity while social infrastructure includes literacy, health status, participation rate etc. which enables a country to use its physical capital more efficiently. The process of industrialization requires setting up of more production units within the domestic territory by residents or non-residents. Therefore, highly skilled labor, marketing facilities, financial sector, transportation all collectively triggers the process of industrialization absence of these facilities may lead to lower pace of industrialization.
2. Untapped natural resources: One of the major obstacle in the process of industrialization is underutilization of natural resources. Many of the resources in underdeveloped countries remain ideal due to lack of human skills which can turn them into productive resources and hence contribute to the GDP as well.