12/18/2019 Economic sector - Wikipedia

Economic sector
One classical breakdown of economic activity distinguishes three sectors:[1]

Primary: involves the retrieval and production of raw materials, such as corn, coal, wood and iron. (A coal miner,
farmer or fisherman would be workers in the primary sector.)
Secondary: involves the transformation of raw or intermediate materials into goods e.g. manufacturing steel into
cars, or textiles into clothing. (A builder and a dressmaker would be workers in the secondary sector.)
Tertiary: involves the supplying of services to consumers and businesses, such as baby-sitting, cinema and
banking. (A shopkeeper and an accountant would be workers in the tertiary sector.)
In the 20th century, economists began to suggest that traditional tertiary services could be further distinguished This figure illustrates the
The primary
from "quaternary" and quinary service sectors. Economic activity in the hypothetical quaternary sector comprises sector of
percentages of the economy
a country's
includes economy made upinvolved
by different in
information- and knowledge-based services, while quinary services include industry related to human services and any industry
sectors. The figure illustrates
hospitality.[2] primary production, that is the
that countries with higher levels
extraction and collection of natural
of socio-economic development
resources; such
tend toas farming,
have forestry,
proportionally less
hunting, fishing and
of their mining. operating in
economies
Contents the primary and secondary
sectors and more emphasis on
Historic evolution
the tertiary sector. The less
By ownership developed countries exhibit the
inverse pattern.
See also
References

Historic evolution
An economy may include several sectors (also called "industries") that evolved in successive phases:

The ancient economy built mainly on the basis of subsistence farming.

The industrial revolution lessened the role of subsistence farming, converting land-use to more extensive and
monocultural forms of agriculture over the last three centuries. Economic growth took place mostly in the Three sectors according to
mining, construction and manufacturing industries. Fourastié
In the economies of modern consumer societies, services, finance, and technology – the knowledge
economy – play an increasingly significant role.
Even in modern times, developing countries tend to rely more on the first two sectors, in contrast to developed
countries.

By ownership
An economy can also be divided along different lines:
Clark's sector model
Public sector or state sector
Private sector or privately run businesses
Voluntary sector

See also
Three-sector theory
Jean Fourastié
Industry classification
International Standard Industrial Classification
North American Industry Classification System – a sample application of sector-oriented analysis
Division of labour
Economic development

References
1. Zoltan Kenessey. "The Primary, Secondary, Tertiary and Quaternary 2. Matt Rosenberg (14 January 2007). "Sectors of the Economy" (http://
Sectors of the Economy" (http://www.roiw.org/1987/359.pdf) (PDF). geography.about.com/od/urbaneconomicgeography/a/sectorseconom
The Review of Income and Wealth. Retrieved 20 April 2012. y.htm). About.com. Retrieved 20 April 2012.
"Regarding the terminology itself Clark informs that "the term tertiary
industries was originated by Professor A. G. B. Fisher in New
Zealand, and became widely known through the publication of his
book, The Clash of Progress and Security, in 1935. It took its origin
from the titles current in Australia and New Zealand of 'primary
industry' for agriculture, grazing, trapping, forestry, fishing and mining,
and 'secondary industry' for manufacture. In Australia and New
Zealand these terms are not only used in statistical reference books
but are widely current in popular discussion. The phrase 'tertiary
industries' therefore immediately carries, in these countries, a
suggestion of those excluded by the official definition of 'secondary
industries.""

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12/18/2019 Primary sector of the economy - Wikipedia

Primary sector of the economy

The primary sector of the economy includes any industry involved in primary production, that is the extraction and collection of natural
resources; such as farming, forestry, hunting, fishing and mining.[1][2][3]

The primary sector tends to make up a larger portion of the economy in developing countries than it does in developed countries. For example, in
2018, agriculture, forestry, and fishing comprised more than 15% of GDP in sub-Saharan Africa[4] but less than 1% of GDP in North America.[5]

Mining in 19th-century South Wales provides a case study of how an economy can come to rely on one form of activity.[6]

In developed countries primary sector has become more technologically advanced - witness for instance the mechanization of farming as opposed to
hand-picking and -planting.[7] More developed economies may invest additional capital in primary means of production. As an example, in the
United States' corn belt, combine harvesters pick the corn, and sprayers spray large amounts of insecticides, herbicides and fungicides, producing a
higher yield than is possible using less capital-intensive techniques. These technological advances and investment allow the primary sector to employ
a smaller workforce - in this way, developed countries tend to have a smaller percentage of their workforce involved in primary activities, instead
having a higher percentage involved in the secondary and tertiary sectors.[8]

Developed countries are allowed to maintain and develop their primary industries even further due to the excess wealth. For instance, European
Union agricultural subsidies provide buffers against fluctuating inflation-rates and prices of agricultural produce. This allows developed countries to
export their agricultural products at extraordinarily low prices. This makes them extremely competitive against those of poor or underdeveloped
countries that maintain free-market policies and low or non-existent tariffs to counter cheap goods.[9][10][11] Such price differences also come about
due to more efficient production in developed economies, given farm machinery, better information available to farmers, and (often) larger scale.

Some economies exhibit a particular emphasis on the basic food-providing parts of the primary sector (farming and fishing), wishing to guarantee via
autarky in food-production that citizens can eat even in extreme circumstances (such as war,[12] blockade,[13] or sanctions). The agricultural
revolution may not have preceded the industrial revolution entirely by chance.

Contents
List of countries by agricultural output
See also
References
Further reading
External links

List of countries by agricultural output

Largest countries by agricultural output (in PPP terms) according to IMF and CIA World Factbook, at peak level as of 2018
Economy Countries by agricultural output (in PPP terms) at peak level as of 2018 (billions in USD)
(01) China 2,101
(02) India 1,602
(03) Indonesia 486
(—) European Union 352
(04) Pakistan 284
(05) Nigeria 253
(06) Brazil 209
(07) Russia 196
(08) United States 185
(09) Iran 162
(10) Turkey 155
(11) Egypt 154
(12) Thailand 109
(13) Vietnam 108
(14) Bangladesh 108
(15) Argentina 101
(16) Mexico 100
(17) Philippines 92
(18) Myanmar 89
(19) Algeria 87
(20) Malaysia 84
The twenty largest countries by agricultural output (in PPP terms) at peak level as of 2018, according to the IMF and CIA World Factbook.

See also
Three-sector hypothesis (Three-sector model)
Resource curse
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12/18/2019 Primary sector of the economy - Wikipedia

References
7. "Employment in agriculture (% of total employment) (modeled ILO
1. Chand, S. N. (2006). Dictionary of economics (https://www.worldcat.o estimate) - Data" (http://data.worldbank.org/indicator/SL.AGR.EMPL.
rg/oclc/297507928). New Delhi: Atlantic Publishers & Distributors.
ZS/countries/1W-US-C5?display=graph). data.worldbank.org.
p. 268. ISBN 81-269-0535-2. OCLC 297507928 (https://www.worldca
t.org/oclc/297507928). 8. H Dwight H. Perkins: Proceedings of the Academy of Political
Science, Vol. 31, No. 1, China's Developmental Experience (Mar.,
2. "Primary producer definition and meaning | Collins English Dictionary" 1973)
(https://www.collinsdictionary.com/dictionary/english/primary-produce
r). www.collinsdictionary.com. Retrieved 2019-12-10. 9. WTO MINISTERIAL OUTCOME IMBALANCED AGAINST
DEVELOPING COUNTRIES (http://www.twnside.org.sg/title2/twninfo
3. Kjeldsen-Kragh, Søren (2007). The Role of Agriculture in Economic 339.htm) Archived (https://web.archive.org/web/20060823085546/htt
Development: The Lessons of History. Copenhagen Business School
p://www.twnside.org.sg/title2/twninfo339.htm) 2006-08-23 at the
Press DK. p. 73. ISBN 978-87-630-0194-6.
Wayback Machine
4. "Agriculture, forestry, and fishing, value added (% of GDP) | Sub- 10. Third World Farmers Hit by Unfair Rules (http://www.twnside.org.sg/tit
Saharan Africa" (https://data.worldbank.org/indicator/NV.AGR.TOTL.Z le2/gtrends6.htm) Archived (https://web.archive.org/web/2006090923
S?locations=ZG). World Bank Open Data. 2018. Retrieved
2153/http://www.twnside.org.sg/title2/gtrends6.htm) 2006-09-09 at the
2019-07-14. Wayback Machine
5. "Agriculture, forestry, and fishing, value added (% of GDP) | North 11. "U.S. subsidies help big business, but crush farmers from developing
America" (https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?loc
countries" (http://www.finalcall.com/international/farmers10-08-2002.h
ations=XU). World Bank Open Data. 2018. Retrieved 2019-07-14.
tm). www.finalcall.com.
6. Mining: it's only a word (http://business.virgin.net/wales.watch/countr 12. See for example Prodrazvyorstka and Dig for victory.
y/farm2.htm) Archived (https://web.archive.org/web/2007012319193
6/http://business.virgin.net/wales.watch/country/farm2.htm) 2007-01- 13. See Blockade of Germany and Blockade of Germany (1939–1945).
23 at the Wayback Machine

Further reading
Dwight H. Perkins: Proceedings of the Academy of Political Science, Vol. 31, No. 1, China's Developmental Experience (Mar., 1973)
Cameron: General Economic and Social History
Historia Económica y Social General, by Maria Inés Barbero, Rubén L. Berenblum, Fernando R. García Molina, Jorge Saborido

External links
Media related to Primary sector of the economy at Wikimedia Commons
Economy101.net: The Nature of Wealth (http://www.economy101.net/)

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12/18/2019 Secondary sector of the economy - Wikipedia

Secondary sector of the economy

The secondary sector of the economy including industries that produce a finished, usable product or are involved in construction.

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 raw materials into goods and products. They also produce waste materials and
waste heat that may cause environmental problems or cause pollution. The secondary sector supports both the primary and tertiary sector.

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 care and 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.

20 largest Countries by Industrial Output (in PPP terms) according to IMF and CIA World Factbook, at peak level as of 2018
Economy Countries by Industrial Output (in PPP terms) at peak level as of 2018 (billions in USD)
(01) China 9,999
(—) European Union 5,442
(02) United States 3,877
(03) India 2,392
(04) Japan 1,673
(05) Indonesia 1,409
(06) Russia 1,354
(07) Germany 1,318
(08) South Korea 841
(09) Saudi Arabia 821
(10) Mexico 814
(11) Turkey 736
(12) Brazil 708
(13) France 597
(14) Iran 593
(15) United Kingdom 576
(16) Italy 576
(17) Canada 521
(18) Poland 483
(19) Thailand 479
(20) Taiwan 450
The twenty largest countries by industrial output (in PPP terms) at peak level as of 2018, according to the IMF and CIA World Factbook.

References
Retrieved from "https://en.wikipedia.org/w/index.php?title=Secondary_sector_of_the_economy&oldid=930758114"

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12/18/2019 Tertiary sector of the economy - Wikipedia

Tertiary sector of the economy

The service sector is the third of the three economic sectors of the three-sector theory. The others are the
secondary sector (approximately the same as manufacturing), and the primary sector (raw materials).

The service sector consists of the production of services instead of end products. Services (also known as
"intangible goods") include attention, advice, access, experience, and affective labor. The production of
information has long been regarded as a service, but some economists now attribute it to a fourth sector, the
quaternary sector.

The tertiary sector of industry involves the provision of services to other businesses as well as final consumers.
Services may involve the transport, distribution and sale of goods from producer to a consumer, as may
happen in wholesaling and retailing, pest control or entertainment. The goods may be transformed in the
process of providing the service, as happens in the restaurant industry. However, the focus is on people Product’s lifecycle
interacting with people and serving the customer rather than transforming physical goods.

Contents
Difficulty of definition
Theory of progression
Issues for service providers
Examples of tertiary sector industries
Ambulance service.
List of countries by tertiary output
See also
References
External links

Difficulty of definition
It is sometimes hard to define whether a given company is part and parcel of the secondary or tertiary sector. And it is
not only companies that have been classified as part of that sector in some schemes; government and its services such as
police or military, and non-profit organizations such as charities or research associations can also be seen as part of that
sector.[1]

In order to classify a business as a service, one can use classification systems such as the United Nations' International
Standard Industrial Classification standard, the United States' Standard Industrial Classification (SIC) code system and
its new replacement, the North American Industrial Classification System (NAICS), the Statistical Classification of Housemaid
Economic Activities in the European Community (NACE) in the EU and similar systems elsewhere. These governmental
classification systems have a first-level hierarchy that reflects whether the economic goods are tangible or
intangible.

For purposes of finance and market research, market-based classification systems such as the Global Industry
Classification Standard and the Industry Classification Benchmark are used to classify businesses that participate
in the service sector. Unlike governmental classification systems, the first level of market-based classification
systems divides the economy into functionally related markets or industries. The second or third level of these
hierarchies then reflects whether goods or services are produced.

Theory of progression Banker at work

For the last 100 years, there has been a substantial shift from the primary and secondary sectors to the tertiary
sector in industrialized countries. This shift is called tertiarisation.[2] The tertiary sector is now the largest sector of the economy in the Western
world, and is also the fastest-growing sector. In examining the growth of the service sector in the early Nineties, the globalist Kenichi Ohmae noted
that:

"In the United States 70 percent of the workforce works in the service sector; in Japan, 60 percent, and in Taiwan, 50 percent. These are not
necessarily busboys and live-in maids. Many of them are in the professional category. They are earning as much as manufacturing workers,
and often more.”[3]

Economies tend to follow a developmental progression that takes them from a heavy reliance on agriculture and mining, toward the development of
manufacturing (e.g. automobiles, textiles, shipbuilding, steel) and finally toward a more service-based structure. The first economy to follow this path
in the modern world was the United Kingdom. The speed at which other economies have made the transition to service-based (or "post-industrial")
economies has increased over time.

Historically, manufacturing tended to be more open to international trade and competition than services. However, with dramatic cost reduction and
speed and reliability improvements in the transportation of people and the communication of information, the service sector now includes some of
the most intensive international competition, despite residual protectionism.

Issues for service providers

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12/18/2019 Tertiary sector of the economy - Wikipedia
Service providers face obstacles selling services that goods-sellers rarely face. Services are intangible, making it
difficult for potential customers to understand what they will receive and what value it will hold for them. Indeed,
some, such as consultants and providers of investment services, offer no guarantees of the value for price paid.

Since the quality of most services depends largely on the quality of the individuals providing the services, "people
costs" are usually a high fraction of service costs. Whereas a manufacturer may use technology, simplification,
and other techniques to lower the cost of goods sold, the service provider often faces an unrelenting pattern of
increasing costs.

Product differentiation is often difficult. For example, how does one choose one investment adviser over another, Surgery team at work
since they are often seen to provide identical services? Charging a premium for services is usually an option only
for the most established firms, who charge extra based upon brand recognition.[4]

Examples of tertiary sector industries

Examples of tertiary industries may include:

Telecommunication
Hospitality industry/tourism
Mass media
Healthcare/hospitals
Public health
Pharmacy
Information technology
Transport service
Waste disposal
Consulting
Gambling
Retail sales
Fast-moving consumer goods (FMCG)
Franchising
Real estate
Education
Financial services
Banking
Insurance
Investment management
Professional services Testing telephone lines in London in
1945.
Accounting
Legal services
Management consulting
Transportation

List of countries by tertiary output

Below is a list of countries by service output at market exchange rates in 2016.

Service output as a percentage of the top

producer (USA) as of 2005

Largest countries by tertiary output in Nominal GDP, according to IMF and CIA World Factbook, 2016
Economy Countries by tertiary output in 2016 (billions in USD)
(01) United States 14,762
(02) China 5,688
(03) Japan 3,511
(04) Germany 2,395
(05) United Kingdom 2,109
(06) France 1,941
(07) Italy 1,366
(08) Brazil 1,295
(09) Canada 1,081
(10) India 1,024
(11) Spain 926
(12) Australia 859
(13) South Korea 850
(14) Russia 797
(15) Mexico 661
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(16) Turkey 551

(17) Netherlands 543
(18) Switzerland 484
(19) Indonesia 429
(20) Belgium 362
The twenty largest countries by tertiary output in 2016, according to the IMF and CIA World Factbook.

See also
Quaternary sector of the economy
Indigo Era (economics)
National Occupational Research Agenda Service Sector Council (https://www.cdc.gov/nora/councils/serv/default.html), USA

References
1. R.P. Mohanty & R.R. Lakhe (1 January 2001). TQM in the Service Sector (https://books.google.com/books?id=ASwLRRY6vIAC&pg=PT33). Jaico
Publishing House. pp. 32–33. ISBN 978-81-7224-953-3. Retrieved 1 May 2013.
2. Definition by the European Foundation for the Improvement of Living and Working Conditions (http://www.eurofound.europa.eu/emire/GREECE/T
ERTIARIZATION-GR.htm) Archived (https://web.archive.org/web/20140720074155/http://www.eurofound.europa.eu/emire/GREECE/TERTIARIZ
ATION-GR.htm) July 20, 2014, at the Wayback Machine
3. The Borderless World: Power and Strategy in the Interlinked Economy.
4. De Soto, Glenn (2006). Fragmented: the Demise of Unionized Construction. Lulu.com. p. 64. ISBN 9781847285775.

External links
Media related to Service industries at Wikimedia Commons

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12/18/2019 Quaternary sector of the economy - Wikipedia

Quaternary sector of the economy

The quaternary sector of any city is a way to describe a knowledge-based[1] part of the economy,
which typically includes knowledge-oriented economic sectors such as information technology,
media, research and development; information-based services such as information-generation and
information-sharing; and knowledge-based services such as consultation, education, financial
planning, blogging, and designing.[2]

The quaternary sector is based on pure knowledge and skill of a person. This skill can help people
get into more advanced jobs than just any normal jobs like mopping the floors. It consists of
intellectual industries providing information services, such as computing and ICT (information
and communication technologies), consultancy (offering advice to businesses) and R&D (research,
particularly in scientific fields). According to some definitions, the Quaternary sector includes
other pure services, such as the entertainment industry, and the term has been used to describe
media, culture, and government.

"Quaternary sector" is a
further delineation of the
three-sector hypothesis of
industry in the sense that the
Quaternary sector refers to a
part of the third or tertiary
sector along with the quinary
economic sector. Intellectual
services are sometimes
regarded as distinct enough
to warrant a separate sector
and not be considered merely
as a part of the tertiary sector.
This sector evolves in well-
Colin Clark's sector model of an economy undergoing technological
developed countries where change. In later stages, the quaternary sector of the economy grows –
the primary and secondary shown in red.
sectors are a minority of the
economy, and requires a
highly educated workforce.[3]

Between them, the tertiary and quaternary sectors form the

largest part of the UK economy, employing 76% of the
workforce. The number of people who earn their living in
these activities is increasing. Companies invest in the
Quaternary sector to promote further expansion. It is seen as a
way to generate higher margins or returns on investment.[4] Producing entertainment television
Research will be directed into cutting costs, tapping into
markets, producing innovative ideas, new production methods
and methods of manufacture, among others. To many industries, such as the pharmaceutical
industry, the sector is the most valuable because it creates future secondary-sector branded
products from which companies may profit.

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12/18/2019 Quaternary sector of the economy - Wikipedia

See also
Indigo Era (economics)
Economic sector
Primary sector
Secondary sector
Tertiary sector

References
1. Tor Selstad (1990). "The rise of the quaternary sector. The regional dimension of wisdom or
knowledge-based services in Norway, 1970–1985 - Norsk Geografisk Tidsskrift - Norwegian
Journal of Geography - Volume 44, Issue 1" (http://www.informaworld.com/smpp/content~db=a
ll~content=a792213401~tab=citations). informaworld. Retrieved 2010-06-17. "... knowledge-
based services ..."
2. Peter Busch (1967). "Tacit Knowledge in Organizational Learning" (https://books.google.com/b
ooks?id=KGd5hL2-rvQC&pg=PT355&lpg=PT355&dq=%22quaternary+sector%22&source=bl&
ots=Nj5PiWaZg-&sig=egbw8NcOG00q99uRyMAwX5zTgOY&hl=en&ei=YjUaTI2zK4P7lwew1t
DRCg&sa=X&oi=book_result&ct=result&resnum=35&ved=0CMABEOgBMCI#v=onepage&q
=%22quaternary%20sector%22&f=false). Tacit Knowledge in Organizational Learning.
Retrieved 2010-06-17. "see page .. The quaternary sector of industry is the sector of industry
that involves the intellectual services. That is research, development, and information."
3. "ICTs, industry and the new teacher model" (https://web.archive.org/web/20120730183257/htt
p://asiancorrespondent.com/30277/icts-industry-and-the-new-teacher-model/). Asian
Correspondent. 2010-06-17. Archived from the original (http://us.asiancorrespondent.com/QU
T/icts-industry-and-the-new-teacher-model) on July 30, 2012. Retrieved 2015-09-09. "In
Australia, the service sector accounts for 70 per cent of the country's economic activity. Within
the service sector, however, more intellectual activities such as government, education, culture
and media, can be further defined as the 'quaternary' sector of the economy. These activities
are typically not measured in monetary value but they significantly contribute to the economy."
4. press release (February 19, 2010). "TEXT-Fitch: Investment to increase in India's healthcare
sector" (http://in.reuters.com/assets/print?aid=INWLB790520100219). Reuters. Retrieved
2015-07-23. "Fitch notes that newly commissioned hospitals and improved occupancy rates at
existing ones will drive revenue growth. Better capacity utilisation and increased focus on
higher-margin tertiary and quaternary healthcare services are expected to boost profitability,
and improve cash flow from operations (CFO)."

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12/18/2019 Three-sector model - Wikipedia

Three-sector model
The three-sector model in economics divides economies
into three sectors of activity: extraction of raw materials
(primary), manufacturing (secondary), and services
(tertiary).[1] According to the model, the main focus of an
economy's activity shifts from the primary, through the
secondary and finally to the tertiary sector. Countries with a Industrial output in 2005
low per capita income are in an early state of development; the
main part of their national income is achieved through
production in the primary sector. Countries in a more
advanced state of development, with a medium national
income, generate their income mostly in the secondary sector.
In highly developed countries with a high income, the tertiary
sector dominates the total output of the economy. The model
was developed by Allan Fisher,[2][3][4] Colin Clark,[5] and Jean Service output in 2005
Fourastié.[6]

Contents
Structural transformation according to Fourastié
First phase: Traditional civilizations
Second phase: Transitional period
Third phase: Tertiary civilization
Extensions to the three-sector model
Quaternary sector
Quinary sector
See also
References
Further reading

Structural transformation according to Fourastié

Fourastié saw the process as essentially positive, and in The
Great Hope of the Twentieth Century he wrote of the increase
in quality of life, social security, blossoming of education and
culture, higher level of qualifications, humanisation of work,
and avoidance of unemployment.[6] The distribution of the
workforce among the three sectors progresses through
different stages as follows, according to Fourastié:

Three sectors according to

First phase: Traditional civilizations Fourastié

Workforce quotas:
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12/18/2019 Three-sector model - Wikipedia

Primary sector: 64.5%

Secondary sector: 20%
Tertiary sector: 15.5%

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
Clark's sector model
the early Middle Ages, or that of a modern-day developing
country.

Second phase: Transitional period

Workforce quotas:

Primary sector: 40%

Secondary sector: 40%
Tertiary sector: 20%
This figure illustrates the
More machinery is deployed in the primary sector, which reduces percentages of a country's
the number of workers needed. As a result, the demand for economy made up by different
machinery production in the secondary sector increases. The sector. The figure illustrates that
transitional way or phase begins with an event which can be countries with higher levels of
socio-economic development
identified with the industrialisation: far-reaching mechanisation
tend to have less of their
(and therefore automation) of manufacture, such as the use of economy made up of primary
conveyor belts. and secondary sectors and more
emphasis in tertiary sectors. The
The tertiary sector begins to develop, as do the financial sector less developed countries exhibit
and the power of the state. the inverse pattern.

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 human services.

Extensions to the three-sector model

Quaternary sector
The quaternary sector comprises mainly intellectual activities and knowledge based activities
aimed at future growth and development. Activities include scientific research, education,
consulting, information management and financial planning.
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Quinary sector
Quinary activities are services that focus on control, such as government, and creation or non-
routine use or creation of information and new technologies.[7]

Sometimes referred to as ‘gold collar’ professions,[8] they represent another subdivision of the
tertiary sector representing special and highly paid skills of senior business executives,
government officials, research scientists, financial and legal consultants, etc. The highest level of
decision makers or policy makers perform quinary activities.[7]

See also
Colin Clark (economist)
Jean Fourastié
Primary sector of the economy
Secondary sector of the economy
Tertiary sector of the economy
Quaternary sector of the economy
Information Revolution
De-industrialization
Private sector

References
1. Kjeldsen-Kragh, Søren (2007). The Role of Agriculture in Economic Development: The
Lessons of History. Copenhagen Business School Press DK. p. 73. ISBN 978-87-630-0194-6.
2. Fisher, Allan G. B. (1935). The Clash of Progress and Security (http://dspace.gipe.ac.in/xmlui/h
andle/10973/24965). London: Macmillan. Retrieved 2019-07-13.
3. Fisher, Allan G. B. (1939). "Production, primary, secondary and tertiary". Economic Record. 15
(1): 24–38. doi:10.1111/j.1475-4932.1939.tb01015.x (https://doi.org/10.1111%2Fj.1475-4932.19
39.tb01015.x). ISSN 1475-4932 (https://www.worldcat.org/issn/1475-4932).
4. Fisher, Allan G. B. (1946). Economic Progress And Social Security (http://archive.org/details/in.
ernet.dli.2015.223593). London: Macmillan. Retrieved 2019-07-14.
5. Colin Clark (1940). The Conditions of Economic Progress (http://archive.org/details/in.ernet.dli.
2015.223779). London: Macmillan. Retrieved 2019-07-13.
6. Fourastié, Jean (1949). Le grand espoir du XXe siècle: Progrès technique, progrès
économique, progrès social. Paris: Presses universitaires de France.
7. Kellerman, Aharon (1985-05-01). "The evolution of service economies: A geographical
perspective 1". The Professional Geographer. 37 (2): 133–143. doi:10.1111/j.0033-
0124.1985.00133.x (https://doi.org/10.1111%2Fj.0033-0124.1985.00133.x). ISSN 0033-0124
(https://www.worldcat.org/issn/0033-0124).
8. "Sectors of Economy: Primary, Secondary, Tertiary, Quaternary and Quinary" (https://www.clea
rias.com/sectors-of-economy-primary-secondary-tertiary-quaternary-quinary/). 2014-10-05.

Further reading
Bernhard Schäfers: Sozialstruktur und sozialer Wandel in Deutschland. ("Social Structure and
Social Change in Germany") Lucius und Lucius, Stuttgart 7th edition 2002
Clark, Colin (1940) Conditions of Economic Progress
Fisher, Allan GB. Production, primary, secondary and tertiary. Economic Record 15.1 (1939):
24-38
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Rainer Geißler: Entwicklung zur Dienstleistungsgesellschaft. In: Informationen zur politischen

Bildung. Nr. 269: Sozialer Wandel in Deutschland, 2000, p. 19f.
Hans Joachim Pohl: Kritik der Drei-Sektoren-Theorie. ("Criticism of the Three Sector Theory")
In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung. Issue 4/Year 03/1970, p. 313-325
Stefan Nährlich: Dritter Sektor: "Organisationen zwischen Markt und Staat." ("Third Sector:
Organizations Between Market and State"). From "Theorie der Bürgergesellschaft" des
Rundbriefes Aktive Bürgerschaft ("Theory of the Civil Society" of the newsletter "Active Civil
Society") 4/2003
Uwe Staroske: Die Drei-Sektoren-Hypothese: Darstellung und kritische Würdigung aus
heutiger Sicht ("The Three-Sector-Hypothesis: Presentation and Critical Appraisal from a
Contemporary View"). Roderer Verlag, Regensburg 1995

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