Set up for the Lewis Model: Industrialisation (Other Strategies)

The Lewis Model of industrialisation is a strategy for industrializing an economy and facilitating development. The model was developed by Nobel Prize-winning economist, W. Arthur Lewis and is based on the premise that workers, who are attracted from traditional occupations in the agricultural sector to the industrial sector, are able to bring their capital and skills with them. This capital and skills, combined with the availability of new technology, provides the opportunity for higher wages and economic growth. Industrialisation is, therefore, seen as a means of giving developing nations access to new economic opportunities and increasing economic prosperity. However, the Lewis model is not the only strategy available to developing countries in order to industrialise. Other strategies, such as trade liberalisation, stimulation of foreign direct investment, and government investment in infrastructure are also important strategies to promote development and contribute towards industrialisation. Trade liberalisation involves reducing or eliminating tariffs, quotas, and other restrictions on international trade, allowing markets to open up and encouraging free trade. Stimulating foreign direct investment involves the state encouraging foreign investment by offering tax incentives, foreign currency grants and discounted investments. Government investment in infrastructure includes spending on roads, ports, and electricity, in order to make the infrastructure more efficient and create an enabling environment for industry and services. Overall, industrialisation should not be seen as the only strategy to promote and foster development. A variety of strategies should be implemented in order to achieve a successful and sustainable development path.