Abstract:

Economic development and population growth are subjects often discussed in the same context. This is because they are completely intertwined, with both positive and negative consequences. Population growth can stimulate economic activity by increasing demand for goods and services, potentially leading to increased investment and job creation. However, unchecked population growth can strain resources, infrastructure, and social services, potentially hindering long-term economic development and leading to issues like resource depletion and environmental degradation (Ahmed, 2024).

To understand how emerging economies can quickly jump the cradles of economic evolution, it is important to revisit how developed economies came to be. Developed economies followed the strenuous traditional, sequential path of industrialization. This started with agriculture, moving into manufacturing, and eventually transitioning into service-led growth. However, this model is time-consuming. Emerging economies face a significantly more complex challenge, as they must meet the basic needs of rapidly growing populations, particularly in areas such as healthcare, food security, employment, housing, and education (Todaro & Smith, 2020). The rate of population growth in these countries has often outpaced economic development, resulting in increased strain on public services and infrastructure, and contributing to social and political instability (United Nations, 2019; World Bank, 2020).

Even though developing nations face immense challenges, there lies a positive aspect in their untapped potential. They have untapped potential in the form of abundant natural resources and a large, youthful labor force. With strategic investments in infrastructure, education, and governance, these assets can be harnessed to spur inclusive and sustainable economic growth (AfDB, 2020). Moreover, if managed effectively, their youthful demographic can catalyze productivity, innovation, and domestic market expansion (Bloom, Canning, & Sevilla, 2003).

Additionally, in contrast to previous industrial revolutions, the emergence of Industry 4.0 offers developing economies a substantial strategic advantage. This paradigm shift enables the potential to bypass traditional developmental stages. When incorporated, Industry 4.0 will accelerate their economic growth. This paper, therefore, explores how Industry 4.0 can be strategically leveraged to drive inclusive, sustainable, and accelerated development in third-world nations.