Industrial restructuring – the process of continuous change in the world pattern of production – is a logical consequence of growth and necessary for continued development. It is one aspect of the trend towards world interdependence and is marked by rapid growth and the shift of industrial activity away from the old industrial centres and towards the newly developed countries. Focus of technological development on a few industries and the commercial uncertainty of developing new processes has made government assistance (financial, technical, scientific and material) a necessity in these science-intensive industries. This has led to increased efficiency of such industries in developed countries, where government support is available, and a relative lagging behind of the traditional industries (such as textiles, clothing, leather, pulp and paper) in these countries. These latter industries have in consequence expanded rapidly in the developing countries, resulting in global specialization.
Restructuring is needed as nations change their relative competitiveness, but it is also required for domestic economic efficiency. These countries require active employment policies.