o When you start to think about that critically we can’t all just provide services to each other o Some of them don’t even want to anymore - Exceptions: o China has specifically gone out of its way to hold roughly a third or half in the primary industry Isn’t this counter intuitive? You’re going to force it? China thinks this is a very good idea They have a billion people, they need a lot of food, they don’t need a billion lawyers They need people to stay and be farmers They are holding people in the primary sector to be producers They have become a manufacturing hub of the planet That’s how they’re making all the money, they have cheaper labor they are continuing to grow the manufacturing sectors they are increasing the service sectors but are keeping it in check they don’t have any desire to have 80% of their workforce in services they are intentionally forcing diversification which goes against the evolution o India: They do have 60% in primary
September 14, 2016 They are taking a different tactic They’re not going to compete with China in the manufacturing sector So they have gone out of their way to try to expand it’s tertiary and quaternary sectors They are investing in the service industry and research When your computer is broken you call someone in india They see their future as high end technology and high tech By passing the whole manufacturing sector Differnet focus than china and differnet results o Costa Rica: They have so many people in tertiary!! The service of note is tourism Overwhelmingly they focus on tourism Tourism does not create the same levels of wealth and the same levels of jobs as the other places They are very service sector oriented but lower wage jobs o Saudi Arabia: They are a very rich country High levels of wealth per capita They only do one thing! It’s oil They make almost 100% of their wealth off of oil They have a ton of it (the most of the world) This is how they get so rich BUT they are undiversified because they have nothing else going on in their country What happens when oil prices go down or when there are alternative resources take over and people use those more than oil The government knows this! As opposed to neighbors United Arab Emirates? They have been much more forward thinking than their neighbors They have gone out of their way to create manufacturing sectors and service structures UAE is now the Microsoft hub
September 14, 2016 They have really pushed tourism and international trade and business and finance connections They have the production but they have diversification! - All of which create wealth for the state / society as a whole - How much wealth? How do we know who is doing the best off? GDP
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- Spring '08
- sectors, Service Sector