From what I understand, manufacturing hasn't stopped, or even declined. It's still going strong, it's just a much smaller percentage of the GDP now. Here's a chart that shows that trend (the source of the chart itself looks like some business-y site, but they say the data is drawn from the UN):

Here's a scary chart showing the decline of manufacturing:

But notice that it's as a percentage of GDP

So I don't think anybody's saying that we need to stop countries from developing, just that once a country develops a strong manufacturing base, they don't have to limit their economy to only or mostly manufacturing.