Primary-people extract raw materials from the land or sea. Farming, fishing and mining are examples.
Secondary-people are involved in manufacturing, where raw materials are converted into a finished product, for example house building, car making or steel processing.
Tertiary-provide a service. there is a wide range of service industries, including distribution, retailing, financial, education and medical.
Quaternary-provide information and expert help. They are often associated with creative or knowledge-based industries, for example IT, biosciences, media etc.
The Clark Fisher Model
Two economists, Clark and Fisher, produced a model which can help to explain changes in employment structures. As countries develop, Clark and Fisher said they go through 3 stages:
LEDC's are dominated by primary production as they don't have the money to produce technological advancements necessary to change dominant employment types.
Middle Income Countries (MIC's) are dominated by the secondary sector. These countries have a declining primary sector and a steadily increasing tertiary sector. As the economies develop and income rises, the demand for manufactured goods increases.
High Income Countries are dominated by the tertiary sector as secondary industries decline and primary employment is almost non-existant. This occurs because the economy continues to rise, people consume more and more and therefore require the services.
Quaternary jobs start to develop as they gain support and promotion from the tertiary sector.
The main reason for economic change is a move away from the INFORMAL economy which can be found in many LEDC's. As countries begin to develop there are shifts and changes in employment patterns, with the most significant being a move to a FORMAL economy. People move to the city (Urbanisation) to get a better job to improve their quality of life but the jobs they have to do are different - they need qualifications, they need to have contracts and they are monitored and taxed for the work they do.
Newly Industrialised Countries (NIC's): These are countries that developed large manufacturing industries very quickly and which have seen their GDP's grow rapidly.
Formal Economy: This is any economic activity that is monitored and taxed by the Government and is included in a country's GDP.
Informal Economy:This is any economic activity that falls outside the formal economy. It isn't taxed, workers are often paid in cash and examples include shoe shiners and food sellers.
Glasgow-Dealing with Deindustrialisation
Increase in mechanisation
Competition from other countries like China
Problem-Ship building closed due to decline in business
Lots of land
Less pollution (noise and air)
Empty buildings (ugly)
•Government help to kick start growth – which then encourages private industries to invest. •Investment in arts and culture (Burrell collection – art museum), architecture (Charles Rennie Mackintosh).
•Old docks – private property developers built shops, restaurants and riverside flats along the Clyde = creation of jobs in building, services, retail.
Outskirts of Birmingham
West Midlands Regional Development Agency regenerate areas hit by decline and dereliction.
12,000 people worked here. Tyretown – entire village built to suit workers’ needs, including cinema, concert hall, sports club.
Factory closed 1980s (moved overseas).
Derelict for 20 years, then 2002 planning permission to create 24hour sustainable community. 100 bed hotel, business park, retail, eat and drink.
Urban Heat Island
Urban areas become warmer because buildings sore heat and car fumes and factories and heating systems and people all add to the heat. This causes the city to become 1 to 4 degrees warmer than the surrounding landscapes.
Gov. encouraged competition in railways, telecommunications, electricity generation, natural gas distribution, and seaports.
1950's, manufacturing overtook agriculture as largest contributor to Mexico's wealth. Manufactured goods: vehicles, chemicals, machinery and equippment. Exported & create more than 70% of Mexico's foreign earnings.
Manufacturers have been drawn to the capital for a number of reasons:
- a large and highly skilled workforce
- a large consumer market
- low distribution costs and is close to Government decision-makers
Recent years, manufacturing increasingly based on chemical production and food processing.
Employment has grown in the re-export processing industry. (These foreign owned corporations sent goods from the USA, assemble or process them and then re-export them back to USA. Duty free meaning company's save money).
Now competition from countries e.g China. So Mexican Gov. encouraged tertiary activities including tourism and retailing.
Today Germany has 4th largest economy in the world. However hasn't always been like that.
Deindustrialisation during the 1970's and 1980's forced economic change in Germany. Manufacturing moved to lower-cost sites (including overseas) and, in its place, service sector and financial services jobs grew in urban areas.
As industry changed, there was a corresponding shift in employment patterns.
Although Germany suffered deindustrialisation, it acted to save its economy by setting up many small and medium sized manufacturing businesses. In the UK only 22% of people are employed in manufacturing but in Germany the figure is 31%.
Germany has also refocused activities so that many people are involved in knowledge-based industries and research & development associated with manufacturing high-end goods, such as cars.
Increase in wealth from manufacturing, increasing gap in wealth
Become employement magnet/industrial hub/education centre/trade core of India.
Attracted migrants-leads to overpopulation and poverty causing environmental problems like water/air pollution and lack of sanitation.
- 4% of country’s GDP
- 40% of all income tax collections
- 40% of India’s foreign trade
- Average income = £500/person/year (3x national average).
- Big companies – Tata group, Reliance and State bank of India.
- Diversified economy – engineering, diamond polishing, Bhabha Atomic research centre, Bollywood.
- Closure of textile mills, but air pollution is still high because of chemical and pharmaceutical industry.
- Eastern suburbs – burning rubbish and increasing emissions from cars and lorries.
- Demand for electricity is higher with 3rd and 4th.
- Lots of fossil fuel usage.
Making 'green' products - from natural renewable materials, or from recycled goods
Constructing green buildings that use less energy, recycle water, and built from natural materials.
Quaternary services e.g. architects (designing 'green' buildings)
Boris bikes, reduce emissions
Offering 'green' services e.g. eco-tourism.
High-cost low volume
Most tourists arrive by air defeating purpose.
Materials have to be brought in by road.
Recycling in Curitiba
2/3 of daily waste is processed.
Creates employment with people sorting organic and inorganic waste.
Unemployed including homeless.
Proceeds used to fund social programmes.
Green employment is employment that helps the environment in some way. An example would be people who work in jobs like designing wind turbines, Because this is a renewable source of energy it is sustainable as it won't run out therefore helping the environment.
- The Broadband Revolution - the growth of telecommunications such as broadband internet and mobile technology has meant many people can work from home so why not do it from a beautiful, peaceful location?
- Influx of newcomers - many retired and some wealthy young, seeking a 'better' lifestyle with clean fresh air and a stronger sense of community.
- Governments supporting new firms with grants, loans and new factories.
- Growth of new activities based on scenery/natural resources (mountain climbing /canoeing)
- The popularity of supermarkets has led to farm produce being driven down in price.
- Farm diversification - farmers have to change what they do and may open B&B's, campsites, film, maize maze
- Lower wages, mechanisation, cheaper imports and diseases such as foot and mouth.
- Many key rural job sectors such as farming, fishing and forestry could see job losses.
- Local village festivals - celebrating local culture / food. These attract lots of visitors during the festival.