Secondary industries in developing countries

Definition of secondary industries

Definitions

• Manufactured goods. Product elaborated from an industrial process. Industry transforms raw materials into new goods.

• Natural resource. Resource provided by nature

• Raw materials. Substances transformed in an industrial process

• Energy sources. Any substance, animal or human being capable of providing energy.

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Secondary industries in developing countries

Industry in LEDCs

Industry in LEDCs• In many LEDCs , there are few industries and they don’t offer too

many jobs. • We can classify industry in “formal” and “informal” sectors.• The “formal” sector offers jobs with regular waged employment

(regular salary). Normal wages are low. Employees work a lot of hours.

• The “formal” sector is usually manufacturing. Often transnational enterprises are the ones that export all products and invest lots of money

• The “informal” sector is usually work in small scale manufacturing (family enterprise located at home). Low investment and irregular wages . Provide local demand (builders, dress and furniture repairs...). Not secure

Industry in LEDCs

• LEDCs can’t increase the “formal” sector due to lack of money, investments and infrastructure (power supplies and transport networks). As a result of that, the “informal” sector increases a lot due to population growth.

• In conclusion, LEDCs are trapped in this cycle and it’s difficult to improve the secondary activities and many people try to migrate to a rich country

Secondary industries in developing countries

NICs and BRIC

NICs

• After the Second World war, several countries of South East Asia promoted industrialization (cars, electronics...) with foreign investments (from developed countries). They have become NICs (newly industrialised countries).

• These countries were Singapore, Taiwan, South Korea and Hong Kong (they were called the “four tigers”). They are small countries and they don’t have energy sources or raw materials

• In recent years you can add Vietnam, Thailand, Malaysia and Indonesia .

BRIC

• BRIC means Brazil, Russia, India and China• They all are big countries and have a lot of

inhabitants.• They have raw materials and energy sources• Their economy has increased a lot in recent

years (e.g. China grew by 10% in 2005)• Foreign enterprises (transnational) and the

State invest in the energy sector and manufacturing.

BRIC

• China produces clothes , shoes... And has a great reserves of coal

• Brazil has oil • India produces electronics and has started

making cars.• Russia exports gas