Introduction
Today, many countries that are inclined to the “adolescent economy” are on the verge of collapse, and there are no resources available to reclaim them unless they resort to environmentally friendly practices. Just like the advanced economies, the Amazon region has to focus on enhancing its technology. The approach will result in faster production of goods, as well as enhanced service delivery.
The development of the textile industry in Lancashire, England marked the start of industrialization. It is worth noting that mechanized production and sufficient energy were the cornerstones for the full industrialization of the country (Industrialization and Economic Development, 2000). Equally, ready fresh products, technology, and sufficient energy supplies were the key drivers of industrialization in the countryside parts of North America.
For example, technological development in the business field can ease transactions (7 Factors of Industrialization, n.d.). For instance, the development of the World Wide Web can be instrumental in developing the Amazon region, as it will help it connect easily with other traders, technocrats, and productive employees. With the development of e-learning, the region can borrow ideas from other organizations in Europe or Australia, and use them in developing its infrastructure, as well as running different organizations. From this analysis, the Amazon region has to ensure that it has adequate energy supplies, up-to-date technology, and ready capital to establish the necessary industries.
Main body
At the same time, the concept of specialization will be essential to the growth of the Amazon region’s economy. Markedly, applying specialization in the primary, secondary, and tertiary sectors of the economy will make it possible for the region to gain a competitive advantage over other regions, which are on the verge of industrialization. Specifically, specialization in the economy lowers the overall cost of production.
Besides, the approach will enable the region to produce and supply high-quality products to their trading partners. Quality supplies increase the demand for the region’s products and services in the international market. Even after producing quality products, developing a good transportation network linking all the market points, cheap labor and raw materials are still vital for successful growth. In addition, for the Amazon region to come full circle from the agrarian economy to the “adolescent economy,” governments in the region have to participate in the improvement of trade on the international front.
For example, introducing a patent system will automatically encourage inventions (Antweiler, Copeland, & Taylor, 2001). Apart from adopting accountability and transparency, the governments should remove all interstate tax and red tape. This move will attract more investors into the region, as well as enhance the movement of goods in and out of the area. A high level of accountability results in the development of trust in the government. Investors will be certain of meeting their objectives with the local workforces who are accountable for their actions. Additionally, the removal of red tapes and interstate taxes increases the region’s possibilities of doing business in the world arena (7 Factors of Industrialization, n.d.).
For example, such policies reduce the cost of registering a business and the duration of registration. The region can easily contract cheap labor from developing nations across the world, especially from Africa. However, for technical positions, the Amazon region should hire experts from advanced economies like the US, the UK, and Japan in order to maintain quality in all their products and services.
The movement from an agrarian economy to an “adolescent economy” requires the involvement of the government in providing security to businesspersons. Given that the Amazon region has porous borders, the governments of all states have to empower their security systems to have full control of the region. Issues of terrorist attacks have negative consequences to the economy. Insecurity causes anxiety among businesspersons and the citizens.
Wars of any kind inflict substantial costs on the economies of the regions that experience them. These wars are destructive to the economy in that they interfere with human life and the general infrastructure, which are the basis of the domestic economy. For example, the onset of war duration marks the beginning of an end to any economic activity. Normally regions in conflict experience low or no duration of any economic activity.
Wars undermine the legitimacy of governments and authorities, damaging the operations of their institutions (Selvanathan, 2007). Whenever war is taking place, the security of a region, as well as the property rights and the rule of law, become a mockery of these institutions, making it hard for organizations, industries, and institutions to do their business effectively. Sporadic and perpetual wars introduce terrific uncertainty to the economic makeup of a region, making investments risky, hard, and ineffective. While it is apparent that war of any magnitude has the capacity to impact the economic fabric of a region, Selvanathan (2007) posits that war ushers a new chapter in the economic progression of a region given that it embodies a period of great uncertainty.
Conclusion
There is a lot to predict on the economic degradation of a region ravaged by war and conflict, war unleashes terror on investors making even prospective companies own up in their business operations. Undoubtedly, the highlighted factors are critical in putting the Amazon region on the path of economic independence.
References
7 Factors of Industrialization. (n.d.). Web.
Antweiler, W., Copeland, B. R., & Taylor, M. S. (2001). Is Free Trade Good for the Environment? American Economic Review, 91(4), 877-908.
Industrialization and Economic Development. (2000). Web.
Selvanathan, S. (2007). The Effect of War and Other Factors on Sri Lankan Tourism. Applied Economics Letters 14 (1), 35-38.