Introduction

First phase: Traditional civilizations

Workforce quotas:

 Primary sector: 70%

 Secondary sector: 20%

 Tertiary sector: 10%

This phase represents a society which is scientifically not yet very developed, with a negligible use
of machinery. The state of development corresponds to that of European countries in the early Middle
Ages, or that of a modern-day developing country.
[edit]Second phase: Transitional period
Workforce quotas:

 Primary sector: 20%

 Secondary sector: 50%

 Tertiary sector: 30%

More machinery is deployed in the primary sector, which reduces the number of workers needed. As a
result, the demand for machinery production in the secondary sector increases. The transitional phase
begins with an event which can be identified with industrialisation: far-reaching mechanisation (and
therefore automation) of manufacture, such as the use of conveyor belts.

The tertiary sector begins to develop, as do the financial sector and the power of the state.
[edit]Third phase: Tertiary civilization
Workforce quotas:

 Primary sector: 10%

 Secondary sector: 20%

 Tertiary sector: 70%

The primary and secondary sectors are increasingly dominated by automation, and the demand for
workforce numbers falls in these sectors. It is replaced by the growing demands of the tertiary sector. The
situation now corresponds to modern-day industrial societies and the society of the future, the service
or post-industrial society. Today the tertiary sector has grown to such an enormous size that it is
sometimes further divided into an information-based quaternary sector, and even a quinary sector based
on non-profit services.
Primary

Definition:

The primary sector of the economy involves changing natural resources into primary products. Most
products from this sector are considered raw materials for other industries. Major businesses in this
sector include agriculture, agribusiness, fishing, forestry and allmining and quarrying industries.

The manufacturing industries that aggregate, pack, package, purify or process the raw materials close to
the primary producers are normally considered part of this sector, especially if the raw material is
unsuitable for sale or difficult to transport long distances.[1]

Primary industry is a larger sector in developing countries; for instance, animal husbandry is more
common in Africa than in Japan.[2]Mining in 19th century South Wales is a case study of how an economy
can come to rely on one form of business.[3]

Canada is unusual among developed countries in the importance of the primary sector, with
the logging and oil industries being two of Canada's most important.
Agriculture

In developed countries primary industry becomes more technologically advanced, for instance the
mechanization of farming as opposed to hand picking and planting. In more developed economies
additional capital is invested in primary means of production. As an example, in the United States corn
belt, combine harvesters pick the corn, and spray systems distribute large amounts
of insecticides, herbicides and fungicides, producing a higher yield than is possible using less capital-
intensive techniques.

Agriculture, forestry, and fishing form the primary sector of industry of the Japanese economy,
together with the Japanese mining industry, but together they account for only 1.3% of gross national
product. Only 15% of Japan's land is suitable for cultivation, but the agricultural economy is highly
subsidized and protected. Agriculture, forestry, and fishing dominated the Japanese economy until the
1940s, but thereafter declined into relative unimportance (see Japanese agriculture before WWII). In the
late 19th century (Meiji period), these sectors had accounted for more than 80 % of employment.
Employment in agriculture declined in the prewar period, but the sector was still the largest employer
(about 50 % of the work force) by the end of World War II. It was further declined to 23.5 % in 1965,
11.9 % in 1977, and to 7.2 % in 1988. The importance of agriculture in the national economy later
continued its rapid decline, with the share of net agricultural production in GNP finally reduced between
1975 and 1989 from 4.1 to 3 % In the late 1980s, 85.5 % of Japan's farmers were also engaged in
occupations outside of farming, and most of these part-time farmers earned most of their income from
nonfarming activities.
Japan's economic boom that began in the 1950s left farmers far behind in both income and agricultural
technology. They were attracted to the government's food control policy under which high rice prices were
guaranteed and farmers were encouraged to increase the output of any crops of their own choice.
Farmers became mass producers of rice, even turning their own vegetable gardens into rice fields. Their
output swelled to over 14 million metric tons in the late 1960s, a direct result of greater cultivated area
and increased yield per unit area, owing to improved cultivation techniques.

Three types of farm households developed: those engaging exclusively in agriculture (14.5 % of the 4.2
million farm households in 1988, down from 21.5 % in 1965); those deriving more than half their income
from the farm (14.2 % down from 36.7 % in 1965); and those mainly engaged in jobs other than farming
(71.3 % up from 41.8 % in 1965). As more and more farm families turned to nonfarming activities, the
farm population declined (down from 4.9 million in 1975 to 4.8 million in 1988). The rate of decrease
slowed in the late 1970s and 1980s, but the average age of farmers rose to 51 years by 1980, twelve
years older than the average industrial employee.

Secondary

Definition :
The secondary sector, whose goods are sold in consumer, capital and industrialmarkets,
forms a significant part of many developed economies (such as the USA, Germany and
France). In recent decades the secondary sector has declined in importance for many
developed economies.

The secondary sector of the economy includes those economic sectors that create a finished, usable
product: production and construction. This was the primary economic sector in America from the 1820s-
1940's

This sector generally takes the output of the primary sector and manufactures finished goods or where
they are suitable for use by other businesses, for export, or sale to domestic consumers. This sector is
often divided into light industry and heavy industry. Many of these industries consume large quantities of
energy and require factories and machinery to convert the raw materials into goods and products. They
also produce waste materials and waste heat that may pose environmental problems or cause pollution.

Some economists contrast wealth-producing sectors in an economy such as manufacturing with

the service sector which tends to be wealth-consuming.[1]Examples of service may include retail,
insurance, and government. These economists contend that an economy begins to decline as its wealth-
producing sector shrinks.[2] Manufacturing is an important activity to promote economic growth and
development. Nations that export manufactured products tend to generate higher marginal GDP growth
which supports higher incomes and marginal tax revenue needed to fund the quality of life initiatives such
as health careand infrastructure in the economy. The field is an important source for engineering job
opportunities. Among developed countries, it is an important source of well paying jobs for the middle
class to facilitate greater social mobility for successive generations on the economy

Divisions of this sector include:

 Aerospace manufacturing

 Automobile industry

 Brewing industry

 Chemical industry

 Textile industry

 Consumer electronics

 Energy industry

 Steel production

 Tobacco industry
Tertiary

The tertiary sector of the economy (also known as the service sector or the service industry) is one
of the three economic sectors, the others being the secondary sector(approximately manufacturing) and
the primary sector (extraction such as mining, agriculture and fishing). The general definition of the
tertiary sector is producing a serviceinstead of just an end product, in the case of the secondary sector.
Although the sharing of information is generally put in the tertiary sector, some economists define a fourth
sector, the quaternary sector

Increasingly service sector businesses are focusing on the idea of the “knowledge economy,” by
understanding what their customers want and how to deliver it quickly and efficiently.

One good example of this is the banking industry which has gone through enormous changes in recent
years. Using information and communication technology, banks have vastly reduced the number of staff
they need. Many banks and building societies have merged to form much “leaner” businesses capable of
extracting more profit from a wider customer base. Key to this process has been gaining information
about customers and constantly providing them with new products.

The tertiary sector of the economy includes elements of the public, private, and voluntary sectors,
according to some economists
Service sector
The service sector, also called the tertiary sector, is one of the three parts of the economy in the Three-
sector hypothesis. This hypothesis breaks the economy into three main areas so it can be better
understood. The other two are the primary sector, which covers areas such
as farming, mining and fishing; and the secondary sector which covers manufacturing and making things.
The service sector provides a service, not an actual product that could be held in your hand. Activities in
the service sector include retail, banks, hotels, real estate, education, health, social
work, transport, computer services, recreation, media, communications, electricity, gas and water supply.
[1]

The service sector is an important part of the economy. For example, in Australia in 2007, 85% of all
businesses were in the service sector.[1]. In 2009 there were more than nine million people employed in
the service sector in Australia, which was 86% of all jobs.[1] In India, there has been a huge growth in
service sector businesses which made up 55% of India's GDP in 2006—2007.[2] Computer software
businesses in India are increasing at a rate of 35% per year.[2]

Increasingly service sector businesses need to focus on what is now being called the “knowledge
economy”.[3] They need to keep ahead of other businesses by understanding what it is their customers
want and be in a position to give it to them quickly and and at low cost. One good example of this
are banks which have gone through enormous changes in recent years.
Using information and communication technology, banks have vastly reduced the number of people they
need to employ, and lowered the cost of providing bank service. For example, an automated teller
machine is able to provide basic banking services 24 hours a day, 7 days a week, in many different
places. Before this, banking services were only available from the bank when it was open. Many banks
and building societies have joined together to form much lower cost businesses that can make more
money from a wider customer base. The key to this process is gaining information about their customers
and constantly coming up with new services for them. An example of a company trying to come up with a
new service for customers is iCard, which is looking at ways to link mobile phones to computers
and social networking.