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

2. 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

3. 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

4. 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

5. 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”?