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The Sectoral Shift: What is it?


Economic activity is a term used to describe any type of undertaking within the broad range of enterprises essential to our lives. Specifically,this includes producing food, making goods from raw materials and the provision of services, information and expertise. In order for an economy to be quantified as ‘active’ it must create jobs, generate income, and produce something for sale or consumption. How these characteristics are thus divided up is due to the state of development each respective country is in and its socio-political nature.


An example of this is notably developed countries, which tend to be mechanised and therefore have more systems in place that negate the need for mass amounts of primary industry production. Furthermore, developed countries are industrialised and additionally have economies mainly based on secondary/tertiary industry, hence the lack of primary industry. Automation of agriculture and manufacturing has, at various points, decreased the need for labour. As well as this, advancements in technology, including computers and machinery, have accelerated and enhanced manufacturing processes. The technological progress has also significantly transformed transportation, markedly reducing the obstacles of distance. Presently, the movement of people and commodities can occur swiftly and inexpensively. For instance, containerization, involving the standardisation of containers for transporting goods via road, rail, or sea, exemplifies this phenomenon. Additionally, contemporary communication systems enable instantaneous global information exchange. Overall, these developments have brought about increased proximity and connectivity among different locations.


However, globalisation isn't the sole contributor to the shifts in sector employment. Governmental policy also holds a key role within this as involvement in economies ranges from minimal in capitalist nations to total control in Communist ones. In the UK, policies support agriculture and services to counterbalance manufacturing job losses. Conversely, China focuses on expanding its secondary sector, producing goods for the global market. Furthermore, Population typically increases over time, leading to higher demand for various goods and services like food, household items, education, and healthcare. This growth affects economic sectors differently. Additionally, a larger population means more potential workers, which can drive growth in labour-intensive economic activities. On a positive note, the tertiary sector expands, it creates increased opportunities for better jobs, resulting in more individuals earning personal income. This surplus income fosters greater personal spending, driving up demand for goods and services, consequently fueling further growth in the tertiary sector. But of course this can also be countered as when the market declines, industries close which means people lose jobs which means that there is less money to spend in local shops and services which means that the local economy declines which means that there is no new investment in an area.

A large concern that weighs heavily upon the minds of many is the impacts of deindustrialisation. The rising numbers of unemployment can be extremely concerning as it can lead to a rise in the informal sector. However this can be countered through government help, allowing for new industries to be encouraged to locate in the area which creates jobs. This means that people have more disposable income which means that the local economy grows which means that more people move to the region/ state. 


The problems associated with such were also debated by the likes of Boserup and Malthus. In fact,the potential of the population exceeds the Earth's capacity to sustainably provide resources for humanity. This situation would lead to catastrophic consequences if population growth remained unchecked, as Malthus warned. Whereas, Boserup's theory, it suggests that cultural and technological advancements can overcome environmental constraints. With increased necessity, innovation flourishes. A growing population drives economic expansion, facilitating greater food production capabilities. From what we can observe, Boserup's has turned out to be correct as mankind has mechanised and industrialised to increase heavily the production of food - to an extent that meets the requirements of the global population.However Malthus' theory is applicable to an industrialised countries who are unable to increase the production of food efficiently enough to meet the demands of their population. Those syrups theory is applicable to industrialised countries.


In conclusion, the issues associated with the sectoral shift and rising populations are deeply significant, however they are not catastrophic in the way Malthus presents them to be. Through government intervention and the promotion of sustainable schemes, there is a way for a globalised, shifted world to align with the premises which are so instrumental to our modern world.



Written by Aurore Lebrun








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Guest
Aug 21

Informative stuff, lovely writing style

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Guest
Aug 07

Riveting 🧐

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