Reindustrialization is the economic, social, and political process of organizing national resources for the purpose of reestablishing industries in response to

deindustrialization Deindustrialization is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially of heavy industry or manufacturing industry. There are different interpr ...

Interpretations

China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

and

Southeast Asia Southeast Asia is the geographical United Nations geoscheme for Asia#South-eastern Asia, southeastern region of Asia, consisting of the regions that are situated south of China, east of the Indian subcontinent, and northwest of the Mainland Au ...

were industrial powerhouses for major parts of human history. These countries and regions suffered great loss of industrial production due to

Industrial Age The Industrial Age is a period of history that encompasses the changes in economic and social organization that began around 1760 in Great Britain and later in other countries, characterized chiefly by the replacement of hand tools with power-d ...

colonization 475px, Map of the year each country achieved List of sovereign states by date of formation, independence. Colonization (British English: colonisation) is a process of establishing occupation of or control over foreign territories or peoples f ...

. After many decades of independence, these countries have started reindustrializing themselves. In the last three decades, the share of these countries in global industrial output has increased manyfold. In context of declining share of

OECD The Organisation for Economic Co-operation and Development (OECD; , OCDE) is an international organization, intergovernmental organization with 38 member countries, founded in 1961 to stimulate economic progress and international trade, wor ...

in world GDP and

outsourcing Outsourcing is a business practice in which companies use external providers to carry out business processes that would otherwise be handled internally. Outsourcing sometimes involves transferring employees and assets from one firm to another ...

of manufacturing and services, reindustrialization is considered as a contrast to

, the process under which

industry Industry may refer to: Economics * Industry (economics), a generally categorized branch of economic activity * Industry (manufacturing), a specific branch of economic activity, typically in factories with machinery * The wider industrial sector ...

, especially

manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The term may refer ...

, is relocated outside of a country's borders, and seeks to reverse that trend. No longer the preserve of BRIC (

Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...

Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...

, India and China) or

n countries, the notion of reindustrialization seems to be making inroads in the political discourse of

populist Populism is a contested concept used to refer to a variety of political stances that emphasize the idea of the " common people" and often position this group in opposition to a perceived elite. It is frequently associated with anti-establis ...

policy makers in the developed economies of Western Europe and North America, notably France and the United States, where the rise of Trumponomics may potentially challenge some of the free trade tenets of the neoliberal "

Washington Consensus The Washington Consensus is a set of ten economic policy prescriptions considered in the 1980s and 1990s to constitute the "standard" reform package promoted for Economic crisis, crisis-wracked developing country, developing countries by the Was ...

". In 2021,

French President The president of France, officially the president of the French Republic (), is the executive head of state of France, and the commander-in-chief of the French Armed Forces. As the presidency is the supreme magistracy of the country, the pos ...

Emmanuel Macron Emmanuel Jean-Michel Frédéric Macron (; born 21 December 1977) is a French politician who has served as President of France and Co-Prince of Andorra since 2017. He was Ministry of Economy and Finance (France), Minister of Economics, Industr ...

revealed a 30-billion euro plan to "revitalize and reindustrailize" France by focusing on

green energy Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Definitions of sustainable energy usually look at its effects on the environment, the economy, and so ...

, the semiconductor industry and the medicine industry. In his speech Macron highlighted the need to develop the neglected French industry to a decarbonised and efficient model. # In context of Asian economies, reindustrialization is a natural process of economic growth in which former industrial powerhouses China, India and Southeast Asia are re-establishing their economies # Advocates of reindustrialization believe that manufacturing and other industrial jobs are more socially and economically desirable than jobs in the

service sector The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors in the three-sector model (also known as the economic cycle). The others are the primary sector (raw materials) and the ...

finance Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Admin ...

. #

Military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. Militaries are typically authorized and maintained by a sovereign state, with their members identifiable by a d ...

national security National security, or national defence (national defense in American English), is the security and Defence (military), defence of a sovereign state, including its Citizenship, citizens, economy, and institutions, which is regarded as a duty of ...

concerns motivate reindustrialization policies, reflecting a desire for

self-sufficiency Self-sustainability and self-sufficiency are overlapping states of being in which a person, being, or system needs little or no help from, or interaction with others. Self-sufficiency entails the self being enough (to fulfill needs), and a sel ...

and fear for

trade route A trade route is a logistical network identified as a series of pathways and stoppages used for the commercial transport of cargo. The term can also be used to refer to trade over land or water. Allowing goods to reach distant markets, a singl ...

s and

supply line Military supply-chain management is a cross-functional approach to procuring, producing and delivering products and services for military materiel applications. Military supply chain management includes sub-suppliers, suppliers, internal inf ...

s in times of conflict. # Reindustrialization policies may reflect concerns over the

balance of trade Balance of trade is the difference between the monetary value of a nation's exports and imports of goods over a certain time period. Sometimes, trade in Service (economics), services is also included in the balance of trade but the official IMF d ...

References

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Interpretations

See also

References

Further reading