Types of economy

Economic Sectors

• Economic Sectors
• Economic sectors vary. This reflects the different economic processes that have affected a place over time. The four economic sectors are primary, secondary, tertiary and quaternary. The relative importance of these economic sectors changes based on each place's level of development and role in their respective local and global economy.
• The primary economic sector is based on the extraction of raw, natural resources. This includes mining and farming. Places such as Plympton, Dartmoor, and southwest England are characterised by the sector.
• The secondary economic sectors are based on the manufacturing and processing of raw resources. This includes iron and steel processing or car manufacturing. The secondary sector has shaped places such as Scunthorpe, Sunderland, and northeast England.
• The tertiary economic sector is the service sector and includes industries such as tourism and banking. The tertiary sector supports places such as Aylesbury and southeast England.
• The quaternary economic sector deals with research and development (R&D), education, business, and consulting services. Examples are Cambridge and east England.

Clark Fisher Model

• Clark Fisher Model
• The Clark Fisher model was created by Colin Clark and Alan Fisher and showed their three-sector theory of economic activity in the 1930s. The theory envisaged a positive model of change where the countries move from a focus in the primary to the secondary to the tertiary sector alongside development. As the access to education improved and led to higher qualifications, this enabled higher paid employment.
• The Clark Fisher model shows how countries move through three phases: pre-industrial, industrial and post-industrial.
• During the pre-industrial phase, most of the population works in the primary sector, with only a few people working in the secondary sector.
• During the industrial stage, fewer workers are in the primary sector as land is being taken over by manufacturing and imports are becoming more common. There is internal rural-to-urban migration, with workers looking for secondary sector employment for a better quality of life.
• During the post-industrial stage, when the country has industrialised, there is a decrease in primary and secondary sector workers but a large increase in tertiary sector workers. There is a demand for entertainment, holidays, and technologies as disposable income grows. The UK is an example of a post-industrial society.