Pre- and Post-Industrialism: How Does the Global Economy Look Like Today?
James Southland
Developed economies today are starting to transcend from an industrial era to post-industrialism. From capital and energy as the primary means of production, knowledge and information is starting to take the front seat. Let us see the economic underpinnings and implications of this phenomenon.
Since the end of the Second World War, many nations – mostly from the west – have developed highly industrial economies. They process raw materials into consumer goods which are then either sold in their local economies or exported abroad. A developed country does not necessarily need to have the resources acquired locally, as they can easily export materials from less developed countries who do not have the required infrastructure for processing them, just like the case of Japan and Germany.
However, as decades passed, more efficient use of technology has made economic processes more reliant on the level of technology employed, rather than amount of labor applied. Thus, man’s innate drive to innovate has led to discoveries on how to more efficiently use manpower. With the increasingly complex world of international finance and the advent of astoundingly effective and efficient communication brought about by the internet, a new economic movement that is based on raw intellect was born.
Alternative investment firms like hedge funds, the need for more novel ways of computing through research on neural networks and genetic algorithms, the increasing popularity of search engine optimization as a tool for increasing business profitability – all of these are a testament to the global shift to such a world order.
Meanwhile, developing countries, which were originally predominantly agricultural, take over what the more advanced economies have left behind – manufacturing. Developing countries are typically the ones who abound in cheap and available manpower, so that they can produce consumer goods more efficiently than the West.
China has taken over much of world production – almost everything is made in China. Furthermore, other developing economies – mostly in Asia – are also joining the gang. South Korea and Taiwan is leading the pack, while Thailand, Vietnam and Indonesia are following suit.
Today, it’s industrial versus agricultural. However, things are about to change.
When taking a break from writing and travelling, James spends time in his organic garden. Just recently, he bought herb plants for sale and onion plants for sale to add to his garden crops.
