1. The Tertiary sector and its activities.
1.1. Evolution of the service economy
The tertiary sector includes a wide range of Activities. These include facilitating the flow of goods, people, services and Information, financing economic activities, training and educating workers, Providing healthcare and supplying leisure products.
This sector has grown considerably for a number of reasons. Changes in Industrialised societies over the past fifty years made it possible to shift Labour from the farming and manufacturing industries to the tertiary sector. This has been accompanied by an increased standard of living for the general Population and a greater demand for services by businesses. The growth and Predominance of the tertiary sector is known as the tertiarisation of the economy or the service economy.
This sector plays an increasingly Important role in the global economy.However, Its relative weight depends on a Country’s level of economic development. There are Significant differences between developed and developing countries in terms of The quantity and quality of the services provided.
In developed countries, which rank high on the HDI, services Tend to be located in large Urban areas and tourist areas. They employ more than 60% of the working Population. In major cities, like Madrid and Paris, the percentage employed by This sector is over 80%. The quality of the different services available gives The population a significant level of well-being.
In developing Countries, The number Of people who work in the tertiary sector is less than 30%. The majority of people working in this sector are employed by the Government or are engaged in lowproductivity Activities, such as street vending. Social services are of a poor quality and most People do not have access to healthcare or education.
GDP AND HDI
Gross domestic product (GDP) is the Total value of all the goods and services a country produces during a given Period.The Human Development Index (HDI) is an indicator that measures life expectancy, health, Education and standard of living.
1.2. Public And private activities
One of the most common ways of classifying tertiary Sector activities is according to ownership:
·Public services: created and Managed by the governmentto guarantee certain basic services to the General population, Including the civil services, defence, these are the services which are part of what is Known as the welfare state or social welfare.
·Private services:created And managed by private companies aim of obtaining financial benefits, such As a newspaper. Private companies may produce services that are also provided To the public sector, although this is normally regulated by the state.
1.3. Financialisation of the economy
Banking And finance. Some Of the services they provide include a secure system for storing money, providing loans So people can do business and generate more money. These activities do not employ Many people, but the rest of the economy depends on them. The Value generated by financial services is greater than the value of all Non-financial activities put together. This Is why, in addition to the tertiarisation of the economy, we also say that the economy has been financialised.
The growth of Financial activities is the result of their internationalisation And the disappearance of regulations governing operations in financial markets That accompanied globalisation. This has led to Significant economic instability and a succession of economic crises since 1990. 2007 was the beginning of the greatest financial crisis since 1929, which Caused a global economic depression.