Comparative Case Study of Sector Shift in HIC vs LIC

UK

Description

10% employed in primary sector

24% in secondary

56% in tertiary

10% in quaternary

·       Had relatively large primary and secondary sectors due to industrialisation in mining, shipbuilding and heaving industry in the mid-1900s however in the past 50 years employment in them has been decreasing, especially due to deindustrialisation and comparative advantage abroad. (London Docklands were replaced with Canary Wharf)

·       Quaternary sector has started to become larger in the last 30 years and is the fastest growing

·       Tertiary has been continually growing for the last few centuries and is the largest sector.

Explanation 

·       There was a large amount of industrial production during WWII.

·       Once war was over, Germany and Japan, whose industry had mainly been destroyed in the war, invested money in new methods of manufacture, creating a comparative advantage.

·       The raw materials such as coal and lead started to run out so the primary sector decreased.

·       Margret Thatcher’s policies in the 1970s caused a lot of damage to the secondary sector.

·       Less labour intensive work in the tertiary sector seen as better paid and easier.

·       A lot of specialised industry has remained in England (secondary-quaternary connection) such as aerospace in Bristol.

·       Improved efficiency within factories means that fewer workers are required.

·       Large firms can afford to invest in R&D (Pharmaceuticals)

India (LIC)

Describe

52% employed in primary

14% in secondary

34% in tertiary

Percentage share in GDP	Primary	Secondary	Tertiary
2008-09	15.7	28.1	56.2
2009-10	14.6	28.1	57.3
2010-11	14.4	27.9	57.7

·       Primary is the largest in employment but lowest in share of GDP, both of which are decreasing.

·       Secondary has the lowest number of employed, though is worth more than primary, staying relatively constant (not following traditional sector shift).

·       Tertiary employs the middle number and has the largest share of GDP

·       Informal sector is very important in India.

Explanation

·       Mechanisation, as well ass urbanisation, is leading to reductions in employment in primary and increase in tertiary.

·       The wealthiest are entering into a cycle of growth, though this wealth is yet to trickle down.

·       Global economic shift has made India a target for cost-minimising businesses (primarily tertiary) due to its cheap labour and land

·       Education is improving so the next generation of Indians can get work in the secondary, tertiary and quaternary sectors easier.

·       High population but low amounts of employment (unemployment). People forces into informal and primary sectors.

·       Tertiary employment (over $3 billion a year) from tourism.