Singapore, Hong Kong, Luxembourg, Switzerland, Iceland, Netherlands Antilles, the Bahamas, are

successful without any major manufacturing sectors. It is all about balancing national budgets. Tourism,
banking, insurance, internet services, trade, air transport, shipping, fishing, construction ... those are major
sectors that can provide work for tens of millions of people. Perhaps not for 300 million ( US ). But surely a
medium sized / pop country can survive without manufacturing exports. Business skills are most important.
manufacturing's long run viability, as defined by its ability to innovate, increase productivity and efficiency,
rely upon services
We need to first clarify what we mean by succeeding. I think success of an economy should be measured by
(i) sustainable growth, (ii) low unemployment, (iii) high living standards and (iv) a fair income distribution.
What I mean by high living standards: (i)Providing the basic needs to the whole population, (ii) a fair
technological development level compared to the rest of the world and (iii) security.
Which of these goals need a big manufacturing base? I think none of them. Under a healthy global economic
environment, a stable national economy based on services sector can achieve all these goals. There might
be two exceptions: technology and security. These goals might need a manufacturing base if the nation does
not want to be dependent on foreign countries.
Besides, under times of crisis, the economy might face external demand and supply strains and might not
be able to provide basic needs and also might fail to sustain growth and employment.
In this regard, an economy needs a fair level of production at those areas in order to be independent and
prosper: (i) agriculture and (ii) technology..
hybrid corn, the green revolution and genetic modification are reminders that "we
cannot afford to think only of manufacturing as the key to prosperity".
For instance, a major growth
sector today is medical tourism where the user goes to the provider. In all four modes of services
that are now embodied in GATS (the General Agreement on Trade in Services), there is
enormous potential and a growing trend.
medical services promise enough savings to America to eliminate the need for President Obama to
increase taxes to finance Obamacare.
the retail sector which are way behind the curve. For instance, many of us today buy online, which offers
a huge variety of products that even the large stores cannot carry and also prompt service. Mr Chang's
complaints about fewer shop assistants and longer drives to the supermarket are increasingly matters
that are
behind us as the retail sector embraces modern technology.
y. According to UNCTAD figures for 2008, the share of manufacturing in GDP
was 23% in Germany, 21% in Japan and 18% in Italy, while America, Britain and France were
clustered around 13-14%.But it is hard to argue that the Italian economy, despite its
relatively large commitment to manufacturing, is performing better than that of Britain or
France, and the same is true of Japan. The prosperity of a country does not depend on the size of
its manufacturing sector. What matters most is productivity growth in the economy as a whole,
and that depends at least as much on the efficiency and progressiveness of the service sector as
on manufacturing.
According to the Bureau of Labor Statistics, the overall number of jobs
in the U.S. has been flat since 2000, and the number of manufacturing
jobs is down. But contrast, jobs in the service sector are up.



service sector consists of the "soft" parts of the economy, i.e. activities where people
offer their knowledge and time to improve productivity, performance, potential, and
sustainability. The basic characteristic of this sector is the production of services
instead of end products. Services (also known as "intangible goods") include
attention, advice, experience, and discussion. Services may involve the transport,
distribution and sale of goods from producer to a consumer, as may happen in
wholesaling and retailing, or may involve the provision of a service, such as in pest
control or entertainment. The goods may be transformed in the process of providing
the service, as happens in the restaurant industry.
The various sectors that combine together to constitute service industry in India are:
Trade
Hotels and Restaurants
Railways
Other Transport & Storage
Communication (Post, Telecom)
Banking
Insurance
Dwellings, Real Estate
Business Services
Public Administration; Defence
Personal Services
Community Services
Other Services