The growth and decline of different economic sectors has resulted in a range of impacts and possible resource issues

What you'll learn

• How economies shift between primary, secondary, tertiary and quaternary sectors as they develop.
• The positive and negative impacts of sector change in the UK and China.
• Why informal employment grows in megacities such as Lagos, Nigeria.
• How Malthus and Boserup explain the relationship between population and resources.

1. The basic building blocks: economic sectors

Economic activity means work that produces goods or services. Geographers divide this activity into sectors so we can compare how economies change over time.

The four main sectors

• Primary sector: extracting raw materials from the natural environment, such as farming, fishing, forestry and mining.
• Secondary sector: making or processing goods, such as manufacturing, construction and steel-making.
• Tertiary sector: providing services, such as retail, healthcare, tourism, education and transport.
• Quaternary sector: high-level knowledge and information work, such as research, ICT, design and some finance or data-based services.

The diagram below shows the general pattern: countries often move from primary-dominated economies, to industrial manufacturing, and then towards services and knowledge-based work.

Why do sector shifts happen?

Sector shifts are linked to several processes:

• Mechanisation: machines replace human labour, especially in farming and manufacturing.
• Industrialisation: a country increases manufacturing and factory production.
• Deindustrialisation: manufacturing declines in importance, often because factories close, automate or move abroad.
• Globalisation: countries become more connected through trade, investment, migration and technology.
• Rising incomes: people spend more on services such as education, leisure, healthcare and finance.

2. Sector shifts in a named developed country: the UK

The United Kingdom is a developed, high-income country in north-west Europe, with a population of about 67 million. Its economy is now dominated by services, especially finance, retail, education, healthcare, tourism, creative industries and ICT.

Positive impacts in the UK

The growth of tertiary and quaternary sectors has created many higher-paid jobs, especially in places such as London, Cambridge, Manchester and the M4 corridor. These areas have benefited from universities, skilled workers, transport links and investment.

Old industrial areas have also been regenerated. For example, parts of London Docklands changed from derelict docks and warehouses into offices, housing, shopping and leisure areas.

There have also been environmental improvements in some places. The closure of heavy industries such as coal mining and steel-making reduced local smoke, waste and river pollution, although this does not mean the UK has no environmental impact.

Negative impacts in the UK

Deindustrialisation caused serious problems in former industrial areas such as South Wales, north-east England, parts of northern England and the Scottish Central Belt. Factory and mine closures led to unemployment, lower incomes, out-migration and derelict land.

There is also a regional inequality issue. London and the South East have attracted more high-value service jobs, while some post-industrial towns have struggled to replace lost manufacturing work.

The UK also imports many manufactured goods and raw materials. This can hide environmental impacts abroad, because pollution and resource use may occur in the countries producing the goods.

3. Sector shifts in a named emerging country: China

China is an emerging economy in East Asia with a population of around 1.4 billion. Since economic reforms began in 1978, China has shifted from a mainly agricultural economy towards manufacturing, construction, services and high-tech industries.

Positive impacts in China

Manufacturing growth created millions of jobs in coastal cities and special economic zones, such as Shenzhen, which grew rapidly from a small town into a major technology and manufacturing city.

Export-led growth increased national income, improved infrastructure and helped reduce extreme poverty. China invested heavily in roads, ports, high-speed rail, housing, factories and energy supply.

The growth of tertiary and quaternary work is now creating more jobs in banking, e-commerce, education, tourism, ICT and research.

Negative impacts in China

Rapid industrialisation has increased demand for energy, water, land and raw materials. China still uses large amounts of coal, which contributes to air pollution and greenhouse gas emissions.

There are also social impacts. Many rural migrants moved to cities for factory and construction work, but some faced long hours, poor conditions and limited access to urban services because of the household registration system known as hukou.

Growth has been uneven. Coastal cities such as Shanghai, Shenzhen and Guangzhou became much richer than many inland rural areas.

4. Informal employment in a named megacity: Lagos, Nigeria

A megacity is a city with more than 10 million people. Lagos, in south-west Nigeria, is one of Africa’s largest megacities and Nigeria’s main economic centre.

Informal work includes street vending, market trading, waste picking, domestic work, motorcycle taxis, small repairs, casual construction and food selling.

Causes of informal employment in Lagos

One major cause is rural-urban migration, which means people move from the countryside to the city. Migrants may be pushed by low farm incomes, poor rural services or lack of opportunities, and pulled by the hope of jobs, education and healthcare in Lagos.

Another cause is uneven economic development. Lagos has more businesses and investment than many rural areas, so it attracts workers. However, formal jobs do not grow fast enough for all new arrivals, and some migrants lack the qualifications, money or contacts needed for formal employment.

Characteristics: advantages and disadvantages

Informal employment can be useful. It provides income quickly, has low start-up costs and offers flexible work. It also supplies cheap goods and services to millions of city residents.

However, it has serious disadvantages. Workers may have low and irregular wages, no sick pay, no pension, unsafe working conditions and little legal protection. City authorities may also lose tax revenue and sometimes remove informal traders from streets or markets.

5. Population and resources: the key debate

Population growth can increase pressure on resources such as food, water, energy and land. Geographers use theories to explain whether this pressure leads mainly to crisis or innovation.

6. Malthus: population can outgrow resources

Thomas Malthus argued in 1798 that population grows faster than food supply. He believed population could increase very rapidly, while food production increased more slowly.

If population rises above carrying capacity, Malthus argued that shortages would lead to positive checks, such as famine, disease and conflict, which increase death rates. He also described preventative checks, such as later marriage and fewer births, which reduce birth rates.

Malthus is useful because he reminds us that resources are not unlimited. However, his theory is often criticised because he underestimated technological change, global trade, contraception and improvements in farming.

7. Boserup: population pressure can cause innovation

Ester Boserup argued that population growth can encourage people to develop new ways of producing food and using resources. Her view is sometimes summarised as “necessity is the mother of invention”.

When food demand rises, societies may respond with irrigation, terracing, fertilisers, high-yield seeds, mechanisation and multiple cropping. This can increase output and raise carrying capacity.

Boserup is useful because it explains why many countries have increased food production despite rapid population growth. However, innovation needs money, education, infrastructure and stable government, and it can also cause environmental damage.

The diagram below compares the two theories: Malthus focuses on shortage and checks, while Boserup focuses on pressure leading to innovation.

8. Bringing the topic together

Sector shifts change jobs, incomes, landscapes and resource demand. In developed countries such as the UK, the shift towards services has brought high-value jobs but also deindustrialisation and regional inequality. In emerging countries such as China, industrialisation has reduced poverty and increased national income, but it has also increased pollution, energy demand and resource pressure.

Informal employment shows that economic growth does not automatically create secure jobs for everyone. In fast-growing megacities such as Lagos, informal work helps people survive, but it often leaves them vulnerable.

Malthus and Boserup help you think about resource pressure. Malthus warns that population can outstrip resources; Boserup argues that population pressure can stimulate innovation.