As a country develops, the share of the workforce in each industry type changes. The table shows the typical pattern for the three World Bank income groups.
Income group
Primary % of employment
Secondary % of employment
Tertiary % of employment
Quaternary % of employment
Low‑income countries (LICs)
≈ 70 %
≈ 20 %
≈ 10 %
≈ 0 %
Middle‑income countries (MICs)
≈ 30 %
≈ 30 %
≈ 35 %
≈ 5 %
High‑income countries (HICs)
≈ 5 %
≈ 20 %
≈ 70 %
≈ 5 %
Why the shift occurs (linking drivers to the percentages)
Industrialisation: Investment in factories creates secondary‑sector jobs, raising the secondary share from ~20 % in LICs to ~30 % in MICs.
Mechanisation (technological change): Machines replace labour in agriculture, causing primary‑sector employment to fall from ~70 % to ~5 % in HICs.
Urbanisation: Growing cities concentrate markets and services, expanding tertiary employment to ~70 % in HICs.
Rising incomes: Higher disposable income fuels demand for services (finance, health, education) and for knowledge‑intensive activities, giving rise to a quaternary sector (≈5 % in MICs and HICs).
DSE‑style examples
LIC – Ethiopia: ≈ 80 % of the workforce in agriculture (coffee, cereals).
MIC – Vietnam: Rapid growth of garment manufacturing (secondary) and export‑oriented factories.
HIC – United Kingdom: Predominantly service‑based economy; finance and professional services dominate employment.
3. Factors Influencing Industrial Location
Factor
How it influences location (cause‑effect)
Illustrative example
Primary importance for …
Natural resources
Proximity reduces extraction and transport costs → lower production cost.
Aluminium smelters near bauxite deposits in Western Australia.
Reliable electricity, water, broadband are essential for continuous production and service delivery.
Industrial parks in Malaysia with dedicated power supply and high‑speed internet.
Secondary (manufacturing) / Quaternary (IT, R&D)
Environmental & social factors
Community opposition, strict environmental legislation or a “green” corporate image can steer firms away from sensitive areas.
Wind‑farm siting after public consultation in Denmark; relocation of a steel plant from a flood‑prone zone.
All sectors (increasingly important for secondary and quaternary)
Sustainability note: Environmental regulations and corporate social responsibility are now a key part of location decisions. Firms increasingly choose sites with lower carbon footprints, access to renewable energy, or where they can demonstrate “green” credentials to meet market expectations.
Definition of globalisation – the increasing integration of world economies through rapid movement of goods, services, capital, people, information and ideas.
Key drivers – advances in transport (container shipping, low‑cost airlines), communications (internet, satellite), and liberal trade policies (e.g., WTO agreements).
Impacts of globalisation (scale)
Local: New factories create jobs but may also cause environmental pressure.
Regional: Improved transport corridors stimulate intra‑regional trade.
National: Higher export earnings; policy challenges over profit repatriation.
Global: Diffusion of technology; increased competition for local firms.
Regional offices – coordination of production, marketing and R&D across a group of countries.
Subsidiaries/plant locations – actual manufacturing, sales or service provision.
DSE‑style case study: Samsung (South Korea)
Positive impacts: Massive job creation (≈ 300 000 direct jobs worldwide), technology transfer to host countries, major contribution to South Korea’s export earnings (≈ US$ 70 billion annually).
Negative impacts: Occasional labour disputes in overseas factories, environmental concerns (e.g., waste water from semiconductor plants), profit repatriation that limits reinvestment in host economies.
Evaluation of TNC impacts
Strengths: Access to capital, advanced technology, global market reach – can accelerate industrialisation in host countries.
Limitations: Dependence on foreign ownership, potential crowding‑out of local firms, profit repatriation reduces long‑term benefits.
Overall judgement: Net benefit depends on the host‑country’s policy framework (e.g., local‑content requirements, environmental standards) and the extent to which skills and technology are transferred to the local economy.
5. Tourism – A Growing Industry
Butler’s tourism‑development model (5 stages)
Exploration – small numbers of adventurous tourists.
Involvement – local people begin to provide basic services.
Development – rapid growth of facilities and visitor numbers.
Consolidation – growth slows; the destination becomes well‑known.
Stagnation (or decline) – over‑crowding, environmental degradation, loss of authenticity.
Typical benefits (linked to scale)
Local: Direct employment in hotels, guides, restaurants; improved local infrastructure (roads, water supply).
Regional: Increased demand for regional transport services; spill‑over benefits for neighbouring attractions.
National: Foreign‑exchange earnings that can support other sectors (e.g., education, health).
Global: Cultural exchange and the promotion of a country’s heritage on the world stage.
Typical problems (linked to scale)
Local: Environmental pressure (waste, water use), rising property prices that displace residents.
Regional: Uneven development – some areas prosper while others are neglected.
National: Over‑reliance on tourism revenues makes the economy vulnerable to global shocks (e.g., pandemics, economic recessions).
Global: Cultural commodification and loss of authenticity as destinations cater to international expectations.
Sustainable management suggestions
Implement visitor‑cap or zoning policies to protect sensitive sites.
Promote community‑based tourism that keeps profits within local economies.
Adopt eco‑certification schemes for hotels, tour operators and attractions.
Reinvest a proportion of tourism revenue into conservation, waste‑management and local services.
Evaluation of a visitor‑cap strategy (e.g., Machu Picchu, Peru)
Advantages: Reduces environmental degradation, preserves cultural heritage, improves visitor experience, and can allow higher ticket prices to offset reduced numbers.
Disadvantages: Limits income for local businesses that rely on high visitor numbers; may create illegal “tourist‑splitting” or encourage overcrowding at alternative sites.
Overall judgement: When combined with effective monitoring, diversified tourism products and fair distribution of revenues, a visitor‑cap can deliver net sustainable benefits, especially for World Heritage sites under severe pressure.
Suggested diagram: A map showing the spatial distribution of primary, secondary, tertiary and quaternary industries across a country, overlaid with major transport routes, resource locations, and a tourism corridor. Include symbols for SEZs, major ports and a visitor‑cap zone.
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