Government-Driven Industrialization

Definition

This refers to the process where a government takes active steps to promote the growth of industries in its country. It often involves policies such as subsidies, tariffs, and infrastructure development.

Analogy

Think of it like a gardener (the government) who wants to grow a particular type of plant (industry). The gardener provides everything that the plant needs - water, sunlight, nutrients (subsidies), protects it from pests (tariffs), and creates an environment conducive for its growth (infrastructure).

Related terms

Subsidies: These are financial aids provided by the government to businesses or industries to help them compete with international companies or encourage certain activities.

Tariffs: These are taxes imposed on imported goods. They make foreign products more expensive, thus protecting domestic industries from foreign competition.

Infrastructure Development: This refers to the construction and improvement of facilities like roads, bridges, power plants etc., which are necessary for economic activity.