But encouraging labor intensive industries, which create jobs for the poor, must not be at the expense of capital intensive industries.

Labor intensive industries were especially hard hit.

China wants to shift from low value added, labor intensive industries such as textiles to higher value added sectors such as electronics and capital goods.

Moreover, there must be greater balance between capital intensive and labor intensive activities.

Labor intensive industries in the tradable sector must be allowed to decline.

Early high growth economies Japan, South Korea, Taiwan initially exported labor intensive products, then graduated to more capital intensive goods like motor vehicles, and then to human capital intensive activities like design and technology development.

These adverse conditions have inadvertently propelled a long delayed restructuring of China s labor intensive industries.

Now, it is laying the groundwork to become a global power in more sophisticated, technology intensive industries.

As a result, these labor intensive sectors must release a lot of labor and capital, which push into the capital intensive export sectors that are better able to cope with high wages.

The analysis shows how all major economic sectors including many energy intensive industries will grow. For example, energy efficient buildings are a boon to the cement and chemical industries.

But it also skews decisions in favour of capital intensive enterprise and away from labour intensive activities more likely to benefit the poor.

Technical options for waste water treatment range from capital intensive conventional treatment systems to alternative systems with lower capital costs.

As a result, its economic model spawned a labor saving, capital intensive growth dynamic.

That is not true of India, where exports are still mainly skill and capital intensive.

Moreover, most of the observed growth was generated by capital rather than labor intensive sectors.

As a result, China s innovative capacity remains relatively low, with its high tech and knowledge intensive industries unable to compete globally.

This has led energy intensive European industries including producers of glass, steel, chemicals, and pharmaceuticals to invest heavily in the US.

Distortions in key prices that favor capital intensive manufacturing need to be removed by raising the cost of land, energy, water, and capital.

These changes involve replacement of capital stock and avoiding long term, carbon intensive technology lock in.

Cheap energy provides a powerful incentive for energy intensive industries from steel and glass to chemicals and pharmaceuticals to locate in the US.

Even firms in established industries such as energy report facing great difficulties in raising capital.

Coal is cheap and widely available in China, which is important as the country scrambles for energy resources to keep its many energy intensive industries running.

In the latter, on the contrary, liberalization has largely been triggered by the failure to establish efficient, competitive industries in labour and or skill intensive sectors.

More capital intensive options could include building water reservoirs to ensure reliable water supplies, with appropriate environmental safeguards in place.

The spread of irrigated farming and water intensive industries, together with the demands of a rising middle class, have led to a severe struggle for more water.

But, lacking capital and forced to pay taxes, what fate awaits industries driven by the state into the market?

The largest scope for renewed private investment is in capital intensive sectors in which government has a major presence as regulator.

Desalination of salt water is another capital intensive option, which is used particularly in water scarce areas and for high value uses.

Moreover, as oil consuming countries aim for energy independence, producing countries will try to shield themselves by building energy intensive industries so they can export oil embedded in industrial products.

Even though the pools of workers may be somewhat segmented, there is enough overlap that it forces service intensive industries to pay higher wages, at least in the long run.

During the crisis, the level of banking activity fell particularly strongly in capital intensive areas such as traditional lending to the private sector.

Lost wages will reduce consumption, causing additional job cuts, while factory closures will reduce investment, hitting employment in capital goods industries.

Progress on further structural reforms such as currency and capital account liberalization and weaning state controlled industries off state capital has been slow, and new initiatives have been piecemeal rather than comprehensive.

Instead, under the new Plan, China will adopt a more labor intensive services model. It will, one hopes, provide a detailed blueprint for the development of large scale transactions intensive industries such as wholesale and retail trade, domestic transport and supply chain logistics, health care, and leisure and hospitality.

Some in Europe worry that stringent action on global warming may be counterproductive energy intensive industries may simply move to the US or other countries that pay little attention to emissions.

During the entire period, R D spending grew significantly faster than global output, reflecting both increasing government support and a rising share of technology intensive industries in global production and trade.

When production exceeds domestic demand, producers are compelled to expand exports, creating an export oriented, capital intensive industrial structure that supports rapid economic growth.

If the fruit of economic growth reaches the poor through employment creation, growth in capital intensive sectors has a limited effect on poverty reduction.

The signs of the fading miracle became visible when Japanese competitors and other Asian Tigers succeeded in wiping out substantial parts of Germany s labor intensive textile, optical products, and precision engineering industries.

First, technological advances have rendered manufacturing much more skill and capital intensive than it was in the past, even at the low quality end of the spectrum.

First, it allows for many savers to pool their wealth to finance large enterprises that can achieve the efficiencies of scale possible from capital intensive modern industry.

It will, one hopes, provide a detailed blueprint for the development of large scale transactions intensive industries such as wholesale and retail trade, domestic transport and supply chain logistics, health care, and leisure and hospitality.

US oil demand has fallen 8 as consumers tighten their belts, and electricity demand in China is down by 10 as energy intensive industries cut production. A smart response to the crisis can perpetuate these trends.

When China s labor intensive industries emerge from their metamorphosis, we should expect to see firms that are larger, that invest more in product innovation and design, and that hold more sway over business and trade policies.

Journal of Psychiatric Intensive Care The Association publishes the Journal of Psychiatric Intensive Care.