Chapter 9: Industrialization and Post-industrialization Beyond Economic Growth: An Introduction to Sustainable Development By Tatyana P. Soubbotina

Overview of Chapter 9: Industrialization and Post-industrialization Major structural shifts Industrialization: Shift from agricultural to industrial Post-industrialization: Shift from industrial to service Knowledge revolution Innovation and technology are major drivers of growth in post-industrial economies Implications for sustainable development

How have economies changed over time? Industrialization: Shift from agricultural to industrial economy Agricultural economy Natural capital (e.g., soils, climate, minerals) drives wealth and growth Production based on humans working with nature Industrial economy Physical capital (e.g., factories, roads, machines) drives wealth and labor productivity drives growth Production based on humans working with machines Post-industrialization: Shift from industrial to service economy Service economy Human capital (e.g., knowledge, education) drives wealth and innovation and technology drives growth Production based on humans working with other humans/technology

Knowledge is the main driver of increased productivity for services The knowledge revolution is the speeding up of scientific advances and new technologies Developing countries need to invest in “knowledge base” as well as in physical capital Obstacles for developing countries Low education levels and few scientists Little research and development (R&D) spending Underdeveloped telecommunications and connectivity infrastructure “Digital divide” in computer and Internet users

What does post-industrialism mean for sustainability? Services use natural capital less intensely and thus put less pressure on the environment Post-industrial economies tend to have cleaner environments Post-industrial economies are affluent and consume a disproportionate share of the world’s production Due to globalization, post-industrial consumption causes pollution in the developing world Are developed countries “over-consuming”?