ABSTRACT
The main purpose of this chapter is to explore the nature of the relationship between industrialisation in the third world and de-industrialisation in the advanced countries. It examines various aspects of third-world industrialisation: its necessity, its comparative structural characteristics, the Lima target and its implications. There are good economic reasons why the third world countries should regard rapid industrialisation as being essential for raising the standards of living of their people and for changing the current unequal structure of the world economy. However, by then, the structure of the third world economies would have altered fundamentally; manufacturing's share in GDP in these countries would be similar to that in the rich countries. However, the purpose of the analysis is not to predict or to suggest industrial growth paths for particular countries, but to draw attention to certain long-term trends in the world economy and to examine their implications.
