During the last 40 years the world’s largest nations have seen several shifts. Formerly called the “industrialized” countries a new euphemism has been coined; the developed nations. The term itself suggests a shift has occurred away from industry, which has concurrently seen a massive loss of technical and unskilled jobs.
History
The world’s prosperity and opportunities have been concentrated in the hands of what was called the rich nations for centuries. 60 years ago in June, the victors of World War II saw a need to make sure events, that led up to the war, would not be repeated. It was determined that the easiest way to do this was to implement national plans in Japan and Germany (as well as Europe in general) that would allow the citizenry to accept Western principles at the same time gain independence through economic strength – the McArthur and Marshall Plans were born.
By the 1960s Europe and more specifically Germany along with Japan were once again thriving societies, not yet on par with the industrialized nations but on a defined path. It was understood that the plan was working and individuals decided to institute similar plans (on a smaller scale) in other regions of the world. The international war on poverty was initiated. Groups including the Peace Corp, USAID and the UN Interdevelopment Agency traversed the planet with the knowledge that nations could develop themselves with, limited aid but, a considerable amount of education and training.
The Change
Industry was not initially pleased with the plans. General Marshall sold the idea based upon a few concepts. The rebuilding would allow US companies to sell US products transported on US merchant ships overseas. Industry became happy to have a subsidized market and continued to aid in the “boot strap” programs of the 60s. A by-product was that industry quickly learned the world had millions of able workers. By the 1970s, complex but unskilled labor was able to compete in product production in less costly nations and the idea to use inexpensive foreign workers was realized.
Steel, tires and automobile parts started coming out of countries like India, Indonesia and Brazil; devastating cities like Pittsburgh, Indianapolis and Canton. Germany and Japan developed highly competitive automobile industries and, by the 1980s, competitive electronics and pharmaceuticals industries as well. The textile and garment industry found homes in Sri Lanka, India and Pakistan; all but destroying those industries in the USA’s South. Appliances and electronics poured from South Korea and Japan while South African, South American and Indian universities started producing highly skilled medical professionals and bio-technicians.
With the advent of high speed telecommunications, which the world saw in the 1990s, technical service jobs went to India and Southeast Asia. The fall of the Soviet Union and the opening of China only increased this flood. High tech computing jobs started going to Russia and large scale manufactured products started coming out of China. Suddenly by 2000, the USA, Canada, England, France and Australia no longer were calling themselves industrial countries but developed nations. The outsourcing paradigm was complete but is it successful?
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