Theory question 106
IndustrialisationIn recent times, developing countries that are predominantly agriculture-oriented are searching for ways of diversifying their economies. Many of these countries strive to exploit the available solid mineral deposits in their lands as a means of promoting industrialization. In view of the above statement:
(a) define the term: (i) industrialization; (ii) mineral resources.
(b) apart from promoting industrialization, identify any three benefits of exploiting mineral deposits.
(c) Outline any three benefits of industrialization to a developing country.
Show the model answer
(a)(i) Industrialization is the process of building up manufacturing and processing industries so that a larger share of output and employment comes from the industrial sector.
(ii) Mineral resources are natural deposits in or on the earth, such as gold, iron ore, coal, limestone, bauxite and crude oil, that can be extracted for use.
(b) Any three: foreign exchange earnings; government revenue (royalties, taxes); employment; infrastructure in mining areas; diversification of exports; attraction of foreign investment and technology.
(c) Any three: employment creation; higher national income and living standards; diversification of the economy; saving and earning foreign exchange; use of local raw materials; development of skills and technology; reduced dependence on imports.
Link mineral exploitation to diversification away from agriculture.