14.1 National development (just first bullet point) Flashcards
what are the 4 different employment sectors?
- primary: produces raw materials from land/sea. e.g farming, fishing, mining
- secondary: manufacturing e.g car production (goods are either capital or consumer)
- tertiary: services to businesses and to people, e.g teachers, nursers, retail workers
- quaternary: information and expertise using high technology, research and development important. e.g aerospace engineers, research scientists
how have employment structures changed over time?
- following industrialisation, large reduction in employment in the primary sector due to the mechanisation of farming, mining, forestry etc drastically reducing demand in these industries and so jobs disappear
- force people to move to urban areas where secondary/tertiary jobs expanding: less than 4% employed in primary sector compared to 40% in 1900
- manufacturing jobs also replaced by factories/machinery and many of the jobs now done in LICs
- tertiary sector also changing though as e.g banking computer networks reduced need for people
- service industry rising, e.g health/tourism as disposable incomes rise and so more holidays
employment structure in LICs
LICs:
- heavily-dependent on primary sector where most work as subsistence farmers
- densely populated areas not enough work and often shared = underemployed
- some regions of LICs mining, fishing or forestry dominate and although mining is often better paid than other jobs, the working conditions are harsh
- primary product dependency means very high unemployment if changes in world market - very vulnerable
- tertiary jobs available often in public sector e.g teaching so paid by the gov and so limited as low on funds and salaries not paid on time
employment structure in MICs
- employment in manufacturing increased rapidly in recent decades due to FDI from TNCs contributing to development
- other contributions to development e.g through service industry e.g in India
- increasing wealth = mechanisation = fall in demand for labour in primary sector
employment structure in HICs
- post-industrial
- most in teritary with increasing number in quaternary
- fall in secondary:
- manufacturing industries moved for lower costs in MICs/LICs
- investment in tech replaced human labour
- outsourcing to save money where lower labour costs e.g British companies (BT) have outsourced their call centres in India
- increase in WFH (especially in COVID) however some companies urging workers back to office as more productive
role of primary sector in economic development
- provision of raw materials: needed for manufacturing and so development of secondary and tertiary sector
- providing employment: enables workers to gain income and so spend in the economy helping to boost growth and development through the multiplier effect and also increases tax revenue allowing more infrastructure development
- attracts investors/TNCs for extraction of natural resources, e.g oil (UAE)
role of secondary sector in economic development
- importance in industrialisation: leads to higher GDP and so economic development
- job creation/employment in manufacturing: as industries expand also create indirect employment in sectors such as retail, transport
- adding value to raw materials: through manufacturing leads to increase in wealth in the economy
- development of secondary sector makes economy less vulnerable to external risks, e.g price fluctuations
- boost trade of secondary goods = economic development
role of tertiary sector in economic development
- contribution to GDP/economic growth: largest contributor in developed economies through finance, technology, retail
- large employer: main source in many countries: healthcare, education etc, also as service sector grows often provides higher educated jobs improving skill development/income levels
- important in function of other sectors e.g secondary as provides financial services and logistics
role of quaternary sector in economic development
- R&D: drives innovation and improves productivity boosting growth as well as improving quality/competitiveness of products: important for trade
- job creation in high skill and high paid roles: contribution to GDP and higher standards of living
- can enhance productivity in other sectors
- attracting foreign investment who seek locations with well-educated workforce and high level tech, in turn help to boost growth/competitiveness
- long term: help sustainable economic development through new technologies, e.g renewable energy