Reindustrialization is the economic, social, and political process of organizing national resources for the purpose of re-establishing industries. The process proceeds as a result of a need to reinvigorate national economies.
Interpretations
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
,
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and
South-East Asia were industrial powerhouses for major parts of human history. These countries and regions suffered great loss of industrial production due to
colonization
Colonization, or colonisation, constitutes large-scale population movements wherein migrants maintain strong links with their, or their ancestors', former country – by such links, gain advantage over other inhabitants of the territory. When ...
during the 18th-20th centuries. After many decades of independence, these countries have started reindustrializing themselves. In the last three decades, the share of these countries in global industrial output has increased manyfold.
In context of declining share of
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
in world GDP and
outsourcing
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...
of manufacturing and services, reindustrialization is considered as a contrast to
deindustrialization
Deindustrialization is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially of heavy industry or manufacturing industry.
There are different interpre ...
, the process under which
industry, especially
manufacturing
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to a r ...
, is relocated outside of a country's borders, and seeks to reverse that trend.
No longer the preserve of
BRICs or
South-East Asian countries, the notion of reindustrialization seems to be making inroads in the political discourse of
populist policy makers in the developed economies of Western Europe and North America, notably France and the United States, where the rise of
Trumponomics may potentially challenge some of the free trade tenets of the neoliberal "
Washington Consensus
The Washington Consensus is a set of ten economic policy prescriptions considered to constitute the "standard" reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the International Monet ...
".
In 2021
French President Emmanuel Macron
Emmanuel Macron (; born 21 December 1977) is a French politician who has served as President of France since 2017. ''Ex officio'', he is also one of the two Co-Princes of Andorra. Prior to his presidency, Macron served as Minister of Econ ...
revealed a 30-billion euro plan to "revitalize and reindustrailize" France by focusing on
green energy, the semiconductor industry and the medicine industry. In his speech Macron highlighted the need to develop the neglected French industry to a decarbonised and efficient model.
# In context of Asian economies, reindustrialization is a natural process of economic growth in which former industrial powerhouses
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
,
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and
South-East Asia are re-establishing their economies
# Advocates of reindustrialization believe that manufacturing and other industrial jobs are more socially and economically desirable than jobs in the
service sector
The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors in the three-sector model (also known as the economic cycle). The others are the primary sector (raw materials) and the second ...
or
finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ...
.
#
Military
A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...
or
national security
National security, or national defence, is the security and defence of a sovereign state, including its citizens, economy, and institutions, which is regarded as a duty of government. Originally conceived as protection against military atta ...
concerns motivate reindustrialization policies, reflecting a desire for
self-sufficiency
Self-sustainability and self-sufficiency are overlapping states of being in which a person or organization needs little or no help from, or interaction with, others. Self-sufficiency entails the self being enough (to fulfill needs), and a self-s ...
and fear for
trade route
A trade route is a logistical network identified as a series of pathways and stoppages used for the commercial transport of cargo. The term can also be used to refer to trade over bodies of water. Allowing goods to reach distant markets, a sing ...
s and
supply lines in times of conflict.
# Reindustrialization policies may reflect concerns over the
balance of trade
The balance of trade, commercial balance, or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation's exports and imports over a certain time period. Sometimes a distinction is made between a balance ...
.
See also
*
Deindustrialization
Deindustrialization is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially of heavy industry or manufacturing industry.
There are different interpre ...
*
Electrification
Electrification is the process of powering by electricity and, in many contexts, the introduction of such power by changing over from an earlier power source.
The broad meaning of the term, such as in the history of technology, economic histor ...
*
Green industrial policy
*
Protectionism
Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. ...
*
Retrofitting
*
Solar thermal energy
References
{{reflist
Secondary sector of the economy
Economic growth
Industrialisation