WAEC Economics 2013 Theory — Question 6

Model answer

(a) Benefits of industrial development include: (i) Industrialization leads to diversification of the economy by making more occupations, goods and services available. (ii) It can serve as a tool for correcting balance of payment deficit by increasing foreign earnings and reducing importation. (iii) It generates more employment opportunities. (iv) It relieves fluctuations and ensures stability of incomes and government tax revenue. (v) It brings about investment in infrastructure such as roads, electric power, and pipe-borne water. (vi) It increases economic flexibility. (b) Measures to encourage industrial growth include: (i) Formulation of good economic policies. (ii) Rapid development of infrastructures. (iii) A functioning and well-developed financial system. (iv) Investment in human capital (human capital development). (v) Tax incentives to industries.