In this paper, the most significant issues which touch upon the topic of industry were taken into consideration. It is of common knowledge that the fungal development, the overwhelming success as well as the economic growth of the state is highly dependable on the industrial situation which is current in that state. This is the reason why it is of paramount importance to investigate this aspect of the country development in order to make it more wealthy and competitive in the world market. The purpose of this paper was make a profound analysis of the concept of industry as well as some other aspects which concise with it. In order to achieve this purpose, a reliable source was used.
1. Industria is known to be formed by the globalization progress which is corporate-led. The structure of industria comprises the producers, the sellers or corporations, the government, and the customers who are the primary actors in it. They interrelate with each other as producers make their products, sellers purchase them and, in this way, they make money out of it, and customers are given an opportunity to choose that or another item which can be either cheap or expensive. The price of the goods is highly dependable on the sellers who can both increase and decrease it and the government policy. In order to insure profit to the corporations, the government designs numerous strategies which cover taxation, the choice of goods which must be produced, personnel, infrastructure costs, and others. Wallerstein and Hipwell define industria as a system which is driven by the profit accumulation.
Corporate-led globalisation is a recent body of collaboration between states and firms. It is a global network sponsored by various states created by a few selected transnational corporations to hold quasi monopolies with an aim of pursuing endless profits. The main objective is to reduce cost of production and establish markets. The global North are the beneficiaries as they are industrialized and therefore, create means of taxing the growing economy. These revenues are used in creation of bureaucratic mechanisms that ensures dominion over factors of production. Wallerstein contends that the generation of profits in this system has less concern on efficiency but rather on the states giving allowance to the quasi monopoly corporations in externalizing these costs particularly the hidden costs; thus helping to increase profits for the corporations. These hidden costs include finding places of disposing raw materials, finding a constant supply of raw materials and developing infrastructure for transportation of the raw materials to the site of industries. The corporations, with the aid of International Monetary Fund (IMF), focus on accumulation of wealth through exploitation of weaker states and environmental destructions such as GHGs.
2. The principle themes that justify industria are poverty and underdevelopment. Economics has however been and continues to be the primary tool that the world is using as development discourse. Economics has emerged to be the critical social science that is applied as a cure to underdevelopment problem. Underdevelopment according to the discourse is considered a problem that is as a result of lack of income. Escobar argues that at an earlier stage, World Bank became specialists at the god trick to reveal everything from nowhere. This made them transform conditions of many people lives into a normalized social, productive environment and creation of modernity. He adds that the power grab of the Bank with its influential member states was by development discourse made invincible. This led to normalization of the Bank practices to solve the problem of poverty.
The main reason as to why development programs are failing is due to poverty among world countries that was as a result of lack of income. Though there were measures to raise income in these poor third countries using the same path that was used by the developed countries, there was no recognition that these developed states used up and depleted the resources and polluted the environment in the third world countries for them to reach the level they are today. In order to counter poverty and develop the third world countries, the only aspect to consider was to increase the income per capita that is used to reduce people to statistics instead of considering their total way of just living in the world.
3. By use of the discourse of development economics which assured that economic growth, when pursued through rational planning and steps, would eradicate poverty in the Third World states, the World Bank prepared itself to be the authorizing development practices. The Bank hired experts who were by that time immersed in the same kind of discourse and assured the states that it was setting a bureaucratic practice rather than ideology and political based but value-neutral and rational principles.The entire network of experts from the Bank was held accountable since it was considered they practices value neutral and rational policies that would not be questionable by anyone in development discourse. The Western states disguised their power exercise to rational bureaucratic. The Bank had to set its mandate ant that one of the IMF so as to prosper into today's economic globalization.
The Bank stipulated its operations and agreed to lend only foreign exchange to the third world countries and insisted that the funds would be repaid using the same currency it lent. This means that the project in the underdeveloped countries funded by the Bank had to earn foreign currency. The government of the funded country did not had to guarantee the loan but instead the project was to be designed to ensure that it produced exports enabling it to earn foreign currency that will pay off the loan.
We deduce that, while the bank declared its goal as to lend Third World countries funds for economy development, the actual projects would be restricted at their initial stage. The basic requirement for the project was that it must lead to export products development earning foreign currency. The products were also to meet the needs of the core process such as in industrialized world. United States of America majorly controls the Bank. USA faces imperatives such as, finding higher rate of profit abroad, secure control of raw materials and expanding their overseas markets.
Upon implementation of these priorities by the Bank, the results will be final structure of industria enabling us to have mature economies at state corporate supplied with raw materials and periphery cheap labour. This will make the periphery countries remain stagnated in a dependent economy having little capacity to industrialize.
4.Structural adjustment programs were programs which provided funds for the to third world countries especially in Africa who were engaged to the export of different crops, for example, cut flowers, cotton, and coffee. The structural adjustment programs (SAPs) of the IMF and those of the World Bank personified this neoliberal ideology to adopt unrestricted market as the best solution to economic growth. Moreover, the bank was obliged to impose the interest of the borrowers. The primary component of these programs was exports that would bear foreign exchange as a pay for the funds. From the period of World War II, the Bank and IMF had limited their action to regulating currencies until that time the world opted to shift away from the gold standards. This then initiated the Banks and IMF new mandates to manage and balance –of-payment difficulties that in turn increased the role they played in the national policies in the developing world. Through this programme, the IMF issued a loan of foreign currency in exchange to structural policy changes adopted by the country.
The structural adjustment programs (SAPs) contributed much to the significant increase in influence of the IMF to dictate the social structures and internal economic on the third world countries. The Bank did finalize its neoliberal conditions constituting of structural adjustment loans in 1986. These conditions ensured that the Bank lent money to a country in compliance with IMF conditions.
Saprina's structural adjustment participation is a network of global citizen groups which were established to legitimize and expand the role played by the civil society as an input to the economic policies imposed by structural adjustment programs.
5. The transnational corporation (TNCs) was established to work behind closed doors in order to gain control in trade over many countries. It created the WTO, which was formed from transformation of GATTs. The main objective of the WTO was to achieve dominance in trade in developing countries by dismantling their trade barriers controlling local trade. This was achieved mainly through privatizing of public resources and assets such as healthcare, water, power, education etc. The incorporation of GATs geared these activities. Privatization alongside with GATs that aimed at eliminating all trade barriers intended to favour the Northern countries through opening up more markets for their industrial products with and acquisition of cheaper raw materials and agricultural products such as cotton. For instance, privatisation of public services in Hungary led to double and triple increase in the cost of electricity, water and other social amenities. WTO policies affect negatively the lives of local people and environment in developing countries as it focuses more on corporate-led global economy. Consequently, little developments are realized in South countries as the developed nations thrive economically through attainment of financial stability motivated by WTO policies.
6. Luxembourg stated that the usage of the resources of the non-capitalist economies could be helpful only in the case if profits needed to be maintained. Subsistence economies could lead to the social units destruction. Mies and Bennholdt-Thomsen agree with Luxembourg’s statement, and they notify that subsistence economies are eventually destroyed by capitalism. It means that globalisation is in the basis of these approaches which also help people to stand on their feet. The non-capitalist industry also lies in the contemporary U.S. empire building and its policy to colonies. The problem of this policy remains the same: the labour is cheap whereas the goods are expensive. Globalisation has been concentrating on creation and accumulation of wealth since fifteenth century to date; eventual outcome of accumulation leaves little room for growth as Langerstein contends. Most of the proposed ways out tend to be only effective in the beginning or for a short time after which they fail to become ineffective. In this view, it becomes difficult to lower taxes as industria is has a challenge of creating wealth to gain profits.
7. Industrial advocated by global corporation of industria focuses mainly in profit generation and putting less concern to food security and value and impact to the environment in developing countries. It specializes in monoculture, production of single cash crop, on vast scale land sometimes displacing the small scale farmers. It heavily relies on high yield varieties (HYVs) which are scientifically modified or GMOs. These crops demand large application of fertilizers like phosphates, potassium and nitrate (NPK) and also require larger amount of water compared to peasants subsistence crops that thrive on organic nutrients of the soil alone. The heavy usage of chemical fertilizers, herbicides and insecticides for longer periods of time associated with industrial agriculture leads to degradation of the soil, poisoning and depletion of water as well as increase in soil salinity. On the contrary, peasant agriculture has minimal negative impact on both food value and environmental and therefore, more beneficial; it involves planting several types of crop on the same piece of land which may include legumes that tend that converts free nitrogen to nitrates in the soil hence increasing its fertility. Moreover, less or no chemicals are used as the crops are resistant to the adverse environment and demand less water hence preservation of soil fertility and water table respectively. The benefits realized by peasant agriculture greatly helped in elimination of poverty and hunger. This strategy was implemented mainly in Punjab, India, as it comprises 30% of the agricultural land of India. The participants of the Green Revolution made a mistake when they did not take into consideration the social and environmental costs.
The major impact was on environment as it result in production of GMOs which have the potential to cause cancer and other related diseases. It led to increases in poverty as farmers accumulated a lot of debts and reduction in food availability for the local people in developing countries. Some farmers, at Punjab committed suicide by drinking the pesticides or sold their kidney to get lid of the highly accumulated debts. Furthermore, it made developed countries richer and developing countries poorer as they were forced to rely on U.S for food security, for example Zimbabwe.
8. I have a relationship and a responsibility to a traditional community. It is significant for me as this type of community makes it possible to guarantee the rights of each member of it and to make everything possible to provide the most appropriate strategy which helps not only to promote goods but also to make them cheaper for the customers.
