The Disrupted Passage from an Agrarian Rural to an Industrial Urban Workforce in Most Countries in the Global South

In many late industrializing countries, most of those who leave agriculture do not find gainful employment. In fact, many of the late industrializers are prematurely de-industrializing. Explanations for the lack of absorption capacity of industries and productive services range from overregulated labour markets to globalization. On the basis of a comparison between the conditions prevalent among the early industrializers and present-day latecomers to industry and advanced services, this article highlights other factors: demographic pressures, restrictions on migration, productivity differentials vis-à-vis the Global North and the few successful late industrializers and the constraints on the promotion of industry stemming from neoliberal globalization. It also points to challenges for a state-led industrial policy stemming from the colonial heritage like lack of societal trust