Services around the world

1. SERVICES AROUND THE WORLD -

THE GROWTH OF THE SERVICE SECTOR The tertiary sector is made up o activities that provide public and private services.

At the beginning of the 20 th century a great amount of workers started moving into the service industry.

The growth of the tertiary sector (or service sector) has resulted in what we call the tertiarisation of the economy.

The tertiarisation is typical of post-industrial societies, where the economy is based on science, technology and innovation.

The tertiarisation has been more intense in developed countries .

This is the result of some factors: 1. Higher incomes and better living standards because when people earn more money, they spend more on services.

2. The spread of the welfare state, where the government is responsible for basic services (education, healthcare‌), which it pays for with taxes.

3. The use of new technologies in industry. (including new forms of engineering, information technology, design, advertsing and marketing services).

4. The development of financial capital markets, (which has increased the number of companies, banks and insurance companies).

1. SERVICES AROUND THE WORLD REGIONAL DIFFERENCES IN TERTIARISATION

- The growth of the service sector is due to the modernisation of the economy.

- According to the Human Development Index (HDI), there are four groups of countries: 1.

Countries with very high HDI: - Services occupy a great part of the economy.

- More than 75% of workers in western European countris, The United States and Australia are employed in tertiary sector.

- The process is less marked in Germany, Italy and Japan, where industry is extremely important.

2.

Countries with high HDI: - Tertiarisation is intense due to the rapid increase in the urban population , especially in Latin America, Eastern Europe and Russia.

3.

Countries with medium HDI: - The growth of services is due to the presence of social groups with a lot of purchaising power.

- It is also due to the need to employ large numbers of workers with little education or training.

-For that reasons, services become a refuge industry: poorly- paid, low- productivity jobs in he govenment, miltry, domestic service‌ 4.

Countries with low HDI: - Fewer than 25% of jobs are in the tertiary sector.

- the percentage is higher if we include the millions of people who wor in the informal or underground economy, which is not regulated by law.