Industry and National Economic Development

Introduction
It is practically impossible to discuss economic development
without mentioning the industrial impact to such economy, in
that, countries only develop economically when various industries
are motivated to thrive, thereby creating employment, increase
revenue generation, stimulate human capital and infrastructural
development directly or indirectly.
To properly understand how Industries breeds economic
development, Nigeria and Singapore, two Countries with some
similarities in nature, but distinct in economic developmental
approaches, which has resulted in the former struggling to be
over the years were carefully studied along with the approved
indices of national development to adjudge the strength of their
economies.
Industry
Wikipedia defines Industry as the production of goods or services
within an economy. According to Merriam-Webster Dictionary,
Industry is a department or branch of a craft, art, business, or
manufacture, especially one that employs a large personnel and
capital especially in manufacturing; a distinct group of productive
or profit-making enterprises. The term Industry therefore, is a
classification that refers to a group of companies that are related
in terms of their primary business activities.
For instance, Workers in the textile industry design, fabricate, and
sell cloth. The tourism industry includes all the commercial
aspects of tourism. The construction industry also includes those
building houses, road construction, Asphalt production and so on.
Industries are often studied by investors and economists to better
understand the factors and limitations to corporate profit growth.
Meanwhile, countries rely on these industries operating within
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their territories as a veritable tool for national economic

development.

Economic Development
Greechie (2013) had succinctly captured the definition of
economic
development
in
The
International
Economic
Development Council thus: economic development is an activity
that seeks to improve the economic well-being and quality of life
for a community, by creating and or retaining jobs.
The World Bank is the primary international organization that
measures economic development on a national and global scale.
Of the more than 2,000 indicators it uses to assess development,
3 out of the 5 majors are of concern in this context, that is,
Economic Policy, Poverty and Private Sector and Trade.
According to wekipedia.com, countries industries reside in, and
the economies of those countries are interlinked in a complex web
of interdependence. Therefore, economic policy of a particular
country would always serve as the economic stabilizer and
whichever way the pendulum swings, the citizenry becomes the
victims, private sector development is hindered and trade also
stunted, thereby frustrating national economic development.
Brief Comparative Analysis of Economic Development
Between Nigeria and Singapore
Singapore, a city-state, is one of the richest countries of the
world. Yet its history is almost similar to Nigerias. Singapore
gained its independence in 1965, five years after Nigeria. While
Singapore is about the 5th richest nation in the world, with an
estimated per capita income of $52,840; Nigeria is ranked 26 th
and celebrated an all time record high of $5,606.56 in 2014 after
the economic rebasing.
Furthermore, adult literacy rate in Singapore is 96.54% against
Nigerias 51.08%; while unemployment rate is 3% in Singapore, it
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is 9.9% in Nigeria. Looking at the Industrial production growth in

Singapore is at 8% while in Nigeria is 3%.
From the above, it is glaring that there is a huge gap between the
countries in terms of national economic development as defined
by Greechie. For such significant development to be witnessed in
a country that started on the same page with Nigeria, there must
be something Singapore has succeeded in doing that Nigeria has
not.
Factors for Economic Development or Underdevelopment
Singapore
Zhou (2014) observed that, Fifty years ago, Singapore was an
undeveloped country with a GDP per capita of less than US $320.
For a country that lacks territory and natural resources,
Singapore's economic ascension is nothing short of remarkable.
The most feasible solution to Singapores economic and
unemployment woes was to embark on a comprehensive program
of industrialization, with a focus on labor-intensive industries.
Pressured to find work for their people, Lee (first Prime Minister)
and his colleagues knew they had to connect with the developed
world and to convince their multinational corporations to
manufacture in Singapore.
In order to attract investors, Singapore had to create an
environment that was safe, corruption-free, low in taxation, and
unimpeded by unions. To make this feasible, the citizens of the
country had to suspend a large measure of their freedom in place
of a more autocratic government. Anyone caught conducting
narcotic trade or intensive corruption would be met with the
death penalty.
The country's draconian, but business-friendly laws became very
appealing to international investors. Moreover, with its
advantageous relative location and established port system,
Singapore was an ideal place to manufacture out of.
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As foreign investment poured in, Singapore began focusing on

developing its human resources, in addition to its infrastructure.
Today, Singapore is an ultra-industrialized society and an envy of
its contemporaries.
Nigeria
Iheanacho (2014) observed that Nigeria has embarked on series
of development plans to fasten the rate of economic growth and
improve the standard of living of the people. It is noteworthy that
Nigeria has gone through four national development plans in
1962, 1970-74, 1975-80 and 1981-85. Besides, the government
introduced another ambitious programme between 2003 and
2007 known as the National Economic Empowerment and
Development Strategy (NEEDS). It was aimed at wealth creation,
employment generation, poverty reduction and value orientation.
Role of Industry in National Economic Development
The role of industrial sector is summarized as follows:
In industrialization there is optimum utilization of scarce
resources. The quality and quantity of manufacturing sector
increase. It increases the national income of the country.
It increases the production of goods and services. The labor
receives higher wages. The income of workers increase and
there living standard also improves
When industrial production increase that increase exports
and revenues of the government.
It generates new employment opportunities.
Industrialization provides machinery like tractors, threshers,
harvesters and spray machines to increase the production of
agriculture sector.

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 As the industrial sector expands, its production increases

and cost of production decreases. The quality of products
improved due to technology
Industrialization increases the supply of goods for internal
and external markets. The government receives revenue in
the form of custom and excise duties, sales and income
taxes from the industrialists due to which government
revenue increases.
According to Hague (1993) Industry ensures a rise in
incomes, and it helps to sustain that rise by keeping a
country competitive in the world market.

Conclusion
Industries play very important role in the economic development
of a country. Nations have been backward in industrial sector due
to different reasons such as historic, political and economic
causes. For the revival and growth of the industrial sector, these
problems should be solved. The law and order situation must be
improved. The security of capital must be assured and the degree
of bureaucratic control to be minimized. A clear cut policy should
be chalked out for the local and foreign investors. The industrial
growth can further be accelerated by ring sick industrial units into
operation, installing new factories and providing maximum
incentives to the working community

Reference
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Cherniwchan, J. (2012): Economic growth, industrialization, and

the
Environment; Department of Economics, The University of
Calgary, Canada
Greechie, S. (2013): What Are Indicators of Economic Development?
Demand Media

Haque, I.U. (1995): Trade, Technology and International

Competitiveness; Economic Development Institute of the
World Bank
Iheanacho, E. N. (2014): National Development Planning in
Nigeria:
An Endless Search for Appropriate Development Strategy;
Department of Political Science, Imo State University, Nigeria
www.investopedia.com/terms/i/industry.asp
www.nigerianstat.gov.ng
www.sarahareporters.com
www.ukessays.com/essays/economics/role-of-industrialization-ineconomic-development-economics-essay.php
www.wekipedia.com

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