Economic Activity Flashcards
What is the primary sector?
- Working natural resources
What is the secondary sector?
- Processings things such as food or minerals, making things by manufacturing, assembling or building
What is the tertiary sector?
- Providing goods and services for the public
What is the quaternary sector?
- Concerned with information and communiactions and research and developement
What are the three industrial phases of a country?
- Pre-industrial
- Industrial
- Post-industrial
What is the developement pathway?
- Agriculture becomes mechansied, and becomes more commerical and shifts away from subsitence farming
- This releases labour to take other forms of works, people move to urban settlements from the countryside where there are factories making goods for expanding markets
- Wages earned in factories lead to more disposable income and most of this si spent on services
- Gradually range of services available expands and tertiary sector become dominanat in both employement and generating economic wealth.
Where does the quaternary sector appear?
- Appears when leading countries need to invest in higher education, research and developement and new technologies in order to be able to compete globally.
What happens as countries move up the developement pathway?
- There is an overall rise in the standard of living and in the level of urbanisation
What are the background facts to India?
- 9th largest economy in the world by GDP
- GNI per capita = $1,340
- HDI level = 0.554 (136th)
What are the background facts to UK?
- 6th largest economy in the world by GDP
- GNI per capita = $38,540
- HDI level = 0.075 (26th)
Describe the sectoral shift in India’s employment over the last two decades
- Over the last two decades India’s share of sectors in employment as changed steadily; in 1973 the primary sector accounted for 79% of the employment, with the secondary sector accounting for 10% of the employment and the tertiary sector accounting for 15%.
- In 2000 the primary sector had decreased to 60%, but with this the tertiary and secondary sectors inflated to 22% and 18% respectively.
- This growth leads to urban disparities between the rural poor and the urban rich.
Explain the reasons for the sectoral shift in India
- 1980s India opened out to world, foreign investor and companeis have outsourced work there
- Overall costs are 50% cheaper in India as wages are lower, for example sending a car hire call to Bangalore rather than the UK costs a total of 20p for the whole transaction.
- Success of hi-tech countries in India - brain-gain’ with more educated Indians returning to their country and this accounts for the multiplier effects as well.
- India as a huge population of 1.1billion - large workforce available and 1.29 million people graduate a year
- Most importantly, 350 million Indian people speak English
What are the issues associated with this shift in employment
- Gap between rich and poor - 35% live on less than US$1 a day.
- Poverty worst in rural areas as prices in the city centre for houses has soared. Top 1% of India owns 16% of the country’s wealth.
- Rural poor stuck in a poverty cycle with few opportunities as the demand for jobs are so high there is overpopulation and overemployment.
- Western companies influenced Indian men and women. High demand for western consumer goods to be increased, with malls being opened in different cities. Creates strain within families, where younger generation are engaging with the Western culture and abandoning traditional cultures.
- Increasing number of companies put strain on the infrastructure of the city. Roads and transport systems aren’t adequate - resulted in paratransit
Describe the characteristics of informal employment
- Self-employmen
- Not declared or regulated by the authorities.
- Tertiary sector.
- Paratransit - lack of adequate transport systems.
- Earnings are so low nothing to break the cycle of poverty in LIC urban areas.
- No health or unemployment benefits
- High exposure to work-related risks
Why do geographers argue that informal employment does nothing to break the cycle of poverty?
- Earningsare so low meansworking generation cannot send their children to school and therefore without education
- The cycle can only be broken when someone intervenes by providing worthwhile means for people to exit the cycle, which usually would be by ensuring the next generation good health and education.