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Industrialisation

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The effect of Industrialisation shown by rising income levels since 1500. The graph shows thegross domestic product(atpurchasing power parity)per capitabetween 1500 and 1950 in1990International dollarsfor selected nations.[1]

Map showing the global distribution of industrial output[clarification needed] in 2005, based on apercentage of the top producer, which is the United States

Industrialisation(orindustrialization) is the process of social and economic change thattransforms a human group from anagrarian societyinto anindustrialone. It is a part of a widermodernisationprocess, wheresocial changeandeconomic developmentare closely related withtechnologicalinnovation, particularly with the development of large-scaleenergyandmetallurgyproduction. It is the extensive organisation of aneconomyfor the purpose ofmanufacturing.[2]
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Industrialisation also introduces a form ofphilosophicalchange where people obtain a differentattitude towards their perception ofnature, and asociologicalprocess of ubiquitousrationalisation.

There is considerable literature on the factors facilitating industrial modernisation and enterprise

development.

[3]

Key positive factors identified by researchers have ranged from favourablepolitical-legal environments for industry and commerce, through abundantnatural resourcesofvarious kinds, to plentiful supplies of relatively low-cost, skilled and adaptablelabour.

As industrial workers incomes rise, markets for consumer goods and services of all kinds tend toexpand and provide a further stimulus to industrialinvestmentandeconomic growth.

The first country to industrialise was theUnited Kingdomduring theIndustrial Revolutioncommencing in the eighteenth century.[4]

By the end of the 20th century,East Asiahad become one of the most recently industrialised

regions of the world .

[5]

Contents

1 Description 2 History of industrialisation

o 2.1 Industrial revolution in Europeo 2.2 Early industrialisation in other countrieso 2.3 The Third Worldo 2.4 Petrol-producing countrieso 2.5 Industrialisation in Asiao 2.6 Newly industrialised countries

3 Social and environmental consequenceso 3.1 Urbanisationo 3.2 Exploitationo 3.3 Change to family structure

4 Current situation 5 See also 6 References 7 Further reading

Description

According to the originalsector classificationofJean Fourasti, an economy consists of a"Primary sector" of commodity production (farming, livestock breeding, exploitation of mineralresources), a "secondary sector" of manufacturing and processing (as paid work), and a "TertiarySector" of service industries. The industrialisation process is historically based on the expansionof the secondary sector in an economy dominated by primary activities.
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iary_sector_of_economic_activityhttp://en.wikipedia.org/wiki/Tertiary_sector_of_economic_activityhttp://en.wikipedia.org/wiki/Tertiary_sector_of_economic_activityhttp://en.wikipedia.org/wiki/Secondary_sector_of_economic_activityhttp://en.wikipedia.org/wiki/Primary_sector_of_economic_activityhttp://en.wikipedia.org/wiki/Jean_Fourasti%C3%A9http://en.wikipedia.org/wiki/Three-sector_hypothesishttp://en.wikipedia.org/wiki/Industrialisation#Further_readinghttp://en.wikipedia.org/wiki/Industrialisation#Referenceshttp://en.wikipedia.org/wiki/Industrialisation#See_alsohttp://en.wikipedia.org/wiki/Industrialisation#Current_situationhttp://en.wikipedia.org/wiki/Industrialisation#Change_to_family_structurehttp://en.wikipedia.org/wiki/Industrialisation#Exploitationhttp://en.wikipedia.org/wiki/Industrialisation#Urbanisationhttp://en.wikipedia.org/wiki/Industrialisation#Social_and_environmental_consequenceshttp://en.wikipedia.org/wiki/Industrialisation#Newly_industrialised_countrieshttp://en.wikipedia.org/wiki/Industrialisation#Industrialisation_in_Asiahttp://en.wikipedia.org/wiki/Industrialisation#Petrol-producing_countrieshttp://en.wikipedia.org/wiki/Industrialisation#The_Third_Worldhttp://en.wikipedia.org/wiki/Industrialisation#Early_industrialisation_in_other_countrieshttp://en.wikipedia.org/wiki/Industrialisation#Industrial_revolution_in_Europehttp://en.wikipedia.org/wiki/Industrialisation#History_of_industrialisationhttp://en.wikipedia.org/wiki/Industrialisation#Descriptionhttp://en.wikipedia.org/wiki/Industrialisation#cite_note-4http://en.wikipedia.org/wiki/East_Asiahttp://en.wikipedia.org/wiki/Industrialisation#cite_note-Industrial_Revolution-3http://en.wikipedia.org/wiki/Industrial_Revolutionhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Wage_labourhttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/Industrialisation#cite_note-2http://en.wikipedia.org/wiki/Rationalization_%28sociology%29http://en.wikipedia.org/wiki/Sociologicalhttp://en.wikipedia.org/wiki/Naturehttp://en.wikipedia.org/wiki/Philosophy


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The first transformation to an industrial economy from an agricultural one is called theIndustrialRevolutionand took place from the mid 18th to early 19th century in certain areas inEuropeandNorth America; starting in Great Britain, followed by Germany, and France. This now is calledthe first industrial revolution.[4][6]

TheSecond Industrial Revolutiondescribes the later changes that came about in the mid 19thcentury after the invention of steam engine,internal combustion engine,electricityand theconstruction of canals, railways and electric power lines. The invention of theassembly linegavethis phase a boost.[7][8][9]

The lack of anindustrialsector in a country can be a handicap in improving the country'seconomy and power, so governments encourage or enforce industrialisation. On the other hand,the presence of industry in a country does not mean in general that it will bring wealth andprosperity to the people of that country. And third, the presence of an industry in one country canmake it more difficult for other countries to develop the same type of industry. This can be seenin the computer software, and internet industries. Started from the U.S.A. around the 1990's these

industries seemed to spread over the world. But after a period of monopolisation less than adecade long, the globally leading companies are concentrated in the U.S.A. Their economicpower and capacity to dominate the media work against the developing of the same types ofindustry in other states.

History of industrialisation

Main article:Pre-industrial society

AWatt steam engine, thesteam enginefuelled primarily bycoalthat propelled theIndustrialRevolutionin theUnited Kingdomand the world.[10]

Most pre-industrial economies had standards of living not much abovesubsistence, among thatthe majority of the population were focused on producing their means of survival. For example,inmedievalEurope, as much as 80% of the labour force was employed in subsistenceagriculture.[citation needed]

Some pre-industrial economies, such asclassical Athens, had trade and commerce as significantfactors, so native Greeks could enjoy wealth far beyond a sustenance standard of living throughthe use ofslavery[citation needed].Famineswere frequent in most pre-industrial societies, although
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some, such as the Netherlands and England of the seventeenth and eighteenth centuries, theItalian city statesof the fifteenth century, the medieval IslamicCaliphate, and the ancientGreekandRomancivilisationswere able to escape the famine cycle through increasing trade andcommercialisationof theagricultural sector[citation needed]. It is estimated that during theseventeenth century Netherlandsimportednearly 70% of its grain supply and in the fifth century

BC Athens imported three quarters of its total food supply.

[citation needed]

Industrialisation throughinnovationin manufacturing processes first started with the IndustrialRevolution in the north-west and Midlands of England in the eighteenth century.[11]It spread toEurope and North America in the nineteenth century.

Industrial revolution in Europe

Main article:Industrial Revolution

Aplerbecker Htte, an industrialised area ofDortmund, Germany around 1910. The old town canbe seen beyond and some remaining agricultural land is in the foreground

In the eighteenth and nineteenth centuries, the United Kingdom experienced a massive increase

in agricultural productivity known as theBritish Agricultural Revolution, which enabled anunprecedentedpopulation growth, freeing a significant percentage of the workforce fromfarming, and helping to drive theIndustrial Revolution.

Due to the limited amount of arable land and the overwhelming efficiency ofmechanisedfarming, the increased population could not be dedicated to agriculture. New agriculturaltechniques allowed a singlepeasantto feed moreworkersthan previously; however, thesetechniques also increased the demand formachinesand otherhardwares, which had traditionallybeen provided by theurbanartisans. Artisans, collectively calledbourgeoisie, employedruralexodusworkers to increase their output and meet the country's needs.

The growth of theirbusinesscoupled with the lack of experience of the new workers pushed arationalisationandstandardisationof the duties the inworkshops, thus leading to adivision oflabour, that is, a primitive form ofFordism. The process of creating agoodwas divided intosimple tasks, each one of them being gradually mechanised in order to boost productivityandthus increaseincome.[citation needed]

The accumulation ofcapitalallowedinvestmentsin theconception and application of newtechnologies, enabling the industrialisation process to continue to evolve. The industrialisation
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process formed a class of industrial workers who had more money to spend than theiragricultural cousins. They spent this on items such as tobacco and sugar, creating new massmarkets that stimulated more investment as merchants sought to exploit them.[12]

The mechanisation of production spread to the countries surrounding England geographically in

Europe such as France and to Britishsettler colonies, helping to make those areas the wealthiest,and shaping what is now known as theWestern world.

The Crystal PalaceGreat Exhibition. The United Kingdom was the first country in the world toindustrialise.[4]

Some economic historians argue that the possession of so-called exploitation colonies eased theaccumulation of capital to the countries that possessed them, speeding up theirdevelopment.[citation needed] The consequence was that thesubject countryintegrated a biggereconomic systemin a subaltern position, emulating the countryside, which demandsmanufactured goods and offers raw materials, while the colonial power stressed its urbanposture, providing goods and importing food. A classical example of this mechanism is said tobe thetriangular trade, which involved England, southern United States and western Africa.Critics argue that this polarity still affects the world, and has deeply retarded industrialisation ofwhat is now known as theThird World.[citation needed]

Some have stressed the importance of natural or financial resources that Britain received from itsmany overseas colonies or that profits from the Britishslave tradebetween Africa and theCaribbean helped fuel industrial investment.[13]

Early industrialisation in other countries

After theConvention of Kanagawaissued by CommodoreMatthew C. Perryforced Japan toopen the ports of Shimoda and Hakodate to American trade, the Japanese government realisedthat drastic reforms were necessary to stave off Western influence. TheTokugawa shogunateabolished thefeudal system. The government instituted military reforms to modernise theJapanese army and also constructed the base for industrialisation. In the 1870s, theMeijigovernment vigorously promoted technological and industrial development that eventuallychanged Japan to apowerfulmodern country.

In a similar way, Russia suffered during theAllied intervention in the Russian Civil War. TheSoviet Union'scentrally controlled economydecided to invest a big part of its resources to
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enhance its industrial production andinfrastructuresto assure its survival, thus becoming a worldsuperpower.[14]

During theCold war, the otherEuropean socialist countries, organised under theComeconframework, followed the same developing scheme, albeit with a less emphasis onheavy industry.

Southern European countries such asSpainorItalysaw a moderate industrialisation during the1950s-1970s, caused by a healthy integration of theEuropean economy, though their level ofdevelopment, as well as those of Socialist European Countries, do not match the more advancedstandards of other European countries like Germany.[15][16]

The Third World

Main article:Third World

A similar state-led developing programme was pursued in virtually all the Third World countries

during theCold War, including thesocialistones, but especially inSub-Saharan Africaafter thedecolonisationperiod.[citation needed] The primary scope of those projects was to achieveself-sufficiencythrough the local production of previouslyimportedgoods, the mechanisation ofagriculture and the spread ofeducationandhealth care. However, all those experiences failedbitterly due to a lack of realism: most countries did not have a pre-industrial bourgeoisie able tocarry on acapitalisticdevelopment or even a stable and peacefulstate. Those abortedexperiences lefthuge debtstoward western countries and fuelledpublic corruption.

Petrol-producing countries

Oil-rich countries saw similar failures in their economic choices. AnEIAreport stated that

OPECmember nations were projected to earn a net amount of $1.251 trillion in 2008 from theiroil exports.[17]Because oil is both important and expensive, regions that had bigreserves of oilhad hugeliquidityincomes. However, this was rarely followed by economic development.Experience shows that localeliteswere unable to re-invest thepetrodollarsobtained through oilexport, and currency is wasted inluxury goods.[18]

This is particularly evident in thePersian Gulf states, where theper capita incomeis comparableto those of western nations, but where no industrialisation has started. Apart from two littlecountries (Bahrainand theUnited Arab Emirates),Arab stateshave notdiversified theireconomies, and no replacement for theupcoming end of oil reservesis envisaged.[19]

Industrialisation in Asia

Apart from Japan, where industrialisation began in the late 19th century, a different pattern ofindustrialisation followed inEast Asia. One of the fastest rates of industrialisation occurred inthe late 20th century across four countries known as theAsian tigersthanks to the existence ofstable governments and well structured societies, strategic locations, heavy foreigninvestments,a low cost skilled and motivatedworkforce, a competitiveexchange rate, and low custom duties.
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In the case of South Korea, the largest of the four Asian tigers, a very fast paced industrialisationtook place as it quickly moved away from the manufacturing of value added goods in the 1950sand 60s into the more advanced steel, shipbuilding and automobile industry in the 1970s and 80s,focusing on the high-tech and service industry in the 1990s and 2000s. As a result, South Koreabecame a majoreconomic power.

This starting model was afterwards successfully copied in other larger Eastern and SouthernAsian countries, includingcommunistones. The success of this phenomenon led to a huge waveofoffshoringi.e., Western factories orTertiary Sectorcorporations choosing to move theiractivities to countries where the workforce was less expensive and less collectively organised.

China and India, while roughly following this development pattern, made adaptations in linewith their own histories and cultures, their major size and importance in the world, and thegeo-politicalambitions of their governments (etc.).

Currently, China's government is actively investing in expanding its own infrastructures and

securing the required energy and raw materials supply channels, is supporting its exports byfinancing the United States balance payment deficit through the purchase of UStreasury bonds,and is strengthening its military in order to endorse a major geopolitical role.

Meanwhile, India's government is investing in economic sectors such asbioengineering,nucleartechnology,pharmaceutics,informatics, and technologically-orientedhigher education,exceeding its needs, with the goal of creating several specialisation poles able to conquer foreignmarkets.

Both China and India, have also started to make significant investments in other developingcountries, making them significant players in today's world economy.

Newly industrialised countries

Main article:Newly industrialised country

The countries in green are considered to be newly industrialising nations. China and India (indark green) are a special case.

In recent decades,[when?] a few countries in Latin America, Asia, and Africa, such asIndonesia,Turkey, South Africa,Malaysia, Philippines, Mexico,Costa Rica, andEl Salvadorhaveexperienced substantial industrial growth, fueled by exporting to countries that have bigger
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economies: the United States, China, India and the EU. They are sometimes callednewlyindustrialised countries.[citation needed]

Despite thistrendbeing artificially influenced by theoil price increases since 2003, thephenomenon is not entirely new nor totally speculative (for instance see:Maquiladora).

Japan and Russia both were successful in the fact that they imitated many other societies givingthem flexibility. Yet they both had very little in common before the 19th century. Japan wasisolated from the world with its ongoing traditions and forms of centralised government. Russiafeatured a more strong centralised government under the emperor. Both would soon to discoverthat westernisation and industrialism were expanding and their own ways would not hold upagainst the new changing world of industrialisation. In the late 19th century the force for them tobeing industrializing would become even more prevalent for the success of their nation in thisnew growing societies.

Social and environmental consequences

This section requiresexpansion.

Urbanisation

Main article:Urbanisation

The concentration of labour into factories has brought about the rise oflarge townsto serve andhouse the factory workers.

Exploitation

Main articles:ExploitationandExploitation of natural resources

Workers have to leave their family in order to come to work in the towns and cities where theindustries are found.

Change to family structure

The family structure changes with industrialisation. The sociologistTalcott Parsonsnoted that inpre-industrial societies there is anextended familystructure spanning many generations who

probably remained in the same location for generations. In industrialised societies thenuclearfamily, consisting of only of parents and their growing children, predominates. Families andchildren reaching adulthood are more mobile and tend to relocate to where jobs exist. Extendedfamily bonds become more tenuous.[20]

Current situation
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This article may beconfusing or unclearto readers. Please helpclarify the article;suggestions may be found on thetalk page.(March 2008)

GDPcomposition of sector and labour force by occupation. The green, red, and blue componentsof the colours of the countries represent the percentages for the agriculture, industry, and servicessectors, respectively.

China in 2010 became the world's largest manufacturer, ending the United States run for over acentury, the value of China manufacturing output in 2010 was $1.995 Trillion Dollars or 19.8%of the worldwide total, edging out the United States which accounted for 19.4% worth $1.952Trillion Dollars.

Currently the "international development community" (World Bank,OECD, many UnitedNations departments, and some other organisations)[citation needed] endorses development policieslike water purification orprimary education.[citation needed] The community does not recognisetraditional industrialisation policies as being adequate to the Third World or beneficial in thelonger term, with the perception that it could only createinefficientlocal industries unable tocompete in thefree-tradedominated political order which it has erected.

The relationship between economic growth, employment and poverty reduction is complex.Higher productivity is argued to be leading to lower employment (seejobless recovery).[21]Thereare differences across sectors, whereby manufacturing is less able than thetertiary sectorto

accommodate both increased productivity and employment opportunities; over 40% of theworld's employees are "working poor" whose incomes fail to keep themselves and their familiesabove the $2 a daypoverty line.[21]There is also a phenomenon ofdeindustrialisation, such as inthe formerUSSRcountries' transition to market economies, and theagriculture sectoroften is thekey sector in absorbing the resultant unemployment.[21]

See also
http://en.wikipedia.org/wiki/Wikipedia:Vaguenesshttp://en.wikipedia.org/wiki/Wikipedia:Vaguenesshttp://en.wikipedia.org/wiki/Wikipedia:Vaguenesshttp://en.wikipedia.org/wiki/Wikipedia:Please_clarifyhttp://en.wikipedia.org/wiki/Wikipedia:Please_clarifyhttp://en.wikipedia.org/wiki/Wikipedia:Please_clarifyhttp://en.wikipedia.org/wiki/Talk:Industrialisationhttp://en.wikipedia.org/wiki/Talk:Industrialisationhttp://en.wikipedia.org/wiki/Talk:Industrialisationhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Primary_educationhttp://en.wikipedia.org/wiki/Primary_educationhttp://en.wikipedia.org/wiki/Primary_educationhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Inefficiencyhttp://en.wikipedia.org/wiki/Inefficiencyhttp://en.wikipedia.org/wiki/Inefficiencyhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Jobless_recoveryhttp://en.wikipedia.org/wiki/Jobless_recoveryhttp://en.wikipedia.org/wiki/Jobless_recoveryhttp://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Tertiary_sectorhttp://en.wikipedia.org/wiki/Tertiary_sectorhttp://en.wikipedia.org/wiki/Tertiary_sectorhttp://en.wikipedia.org/wiki/Poverty_linehttp://en.wikipedia.org/wiki/Poverty_linehttp://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Deindustrialisationhttp://en.wikipedia.org/wiki/Deindustrialisationhttp://en.wikipedia.org/wiki/Deindustrialisationhttp://en.wikipedia.org/wiki/USSRhttp://en.wikipedia.org/wiki/USSRhttp://en.wikipedia.org/wiki/USSRhttp://en.wikipedia.org/wiki/Agriculture_sectorhttp://en.wikipedia.org/wiki/Agriculture_sectorhttp://en.wikipedia.org/wiki/Agriculture_sectorhttp://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/File:Gdp-and-labour-force-by-sector.pnghttp://en.wikipedia.org/wiki/File:Gdp-and-labour-force-by-sector.pnghttp://en.wikipedia.org/wiki/File:Gdp-and-labour-force-by-sector.pnghttp://en.wikipedia.org/wiki/File:Gdp-and-labour-force-by-sector.pnghttp://en.wikipedia.org/wiki/File:Gdp-and-labour-force-by-sector.pnghttp://en.wikipedia.org/wiki/File:Gdp-and-labour-force-by-sector.pnghttp://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Agriculture_sectorhttp://en.wikipedia.org/wiki/USSRhttp://en.wikipedia.org/wiki/Deindustrialisationhttp://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Poverty_linehttp://en.wikipedia.org/wiki/Tertiary_sectorhttp://en.wikipedia.org/wiki/Industrialisation#cite_note-ODI2-20http://en.wikipedia.org/wiki/Jobless_recoveryhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Inefficiencyhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Primary_educationhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Talk:Industrialisationhttp://en.wikipedia.org/wiki/Wikipedia:Please_clarifyhttp://en.wikipedia.org/wiki/Wikipedia:Vagueness


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21.^abcClaire Melamed, Renate Hartwig and Ursula Grant 2011.Jobs, growth and poverty:what do we know, what don't we know, what should we know? London:OverseasDevelopment Institute

Further reading

Hewitt, T., Johnson, H. and Wield, D. (Eds) (1992) industrialisation and Development,Oxford University Press: Oxford.

Hobsbawm, Eric (1962): The Age of Revolution. Abacus. Kiely, R (1998) industrialisation and Development: A comparative analysis, UCL

Press:London. Pomeranz, Ken (2001)The Great Divergence: China, Europe and the Making of the

Modern World Economy (Princeton Economic History of the Western World) by(Princeton University Press; New Ed edition, 2001)

Kemp, Tom (1993)Historical Patterns of Industrialisation, Longman: London.ISBN 0-582-09547-6

Tilly, Richard H.:Industrialization as an Historical Process,European History Online,Mainz:Institute of European History, 2010, retrieved: February 29, 2011.

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