Characteristics of Countries at Different Levels of Development: Economic Structure

This section explores the economic structure of countries categorized into different levels of development, focusing on employment composition and the relative importance of the primary, secondary, and tertiary sectors.

Levels of Development

Countries are typically classified into three main levels of development:

• Less Developed Countries (LDCs): Characterized by low income per capita, limited industrialization, and a predominantly agricultural economy.
• Newly Industrialized Countries (NICs): Experiencing rapid industrial growth and rising income levels. Often transitioning from a predominantly agricultural to an industrial economy.
• High-Income Countries (HICs): Possess high levels of economic development, high income per capita, and a highly developed service sector.

Employment Composition: Sectoral Shifts

The composition of employment within an economy provides a key indicator of its level of development. As countries develop, there is a characteristic shift in the proportion of the workforce employed in different sectors.

Less Developed Countries (LDCs)

In LDCs, the majority of the workforce is employed in the primary sector.

Sector	Percentage of Workforce
Primary	High (e.g., 70-80%)
Secondary	Low (e.g., 10-20%)
Tertiary	Very Low (e.g., 5-10%)

Characteristics of the Primary Sector in LDCs:

• Subsistence farming is common.
• Low productivity per worker.
• Vulnerability to weather conditions and commodity price fluctuations.
• Limited investment in agricultural technology.

Newly Industrialized Countries (NICs)

NICs exhibit a transition in their employment composition. The proportion of the workforce in the secondary sector begins to increase, while the proportion in the primary sector declines.

Sector	Percentage of Workforce
Primary	Declining (e.g., 20-40%)
Secondary	Increasing (e.g., 30-50%)
Tertiary	Growing (e.g., 10-30%)

Characteristics of the Secondary Sector in NICs:

• Growth of manufacturing industries.
• Increased investment in factories and infrastructure.
• Migration from rural to urban areas in search of work.
• Often reliant on imported technology and capital.

High-Income Countries (HICs)

HICs have a predominantly tertiary sector.

Sector	Percentage of Workforce
Primary	Very Low (e.g., 1-5%)
Secondary	Low (e.g., 10-20%)
Tertiary	High (e.g., 70-85%)

Characteristics of the Tertiary Sector in HICs:

• Dominance of services such as finance, healthcare, education, and tourism.
• High levels of skill and specialization.
• Significant investment in technology and innovation.
• Often characterized by high productivity per worker.

Diagrammatic Representation

Factors Influencing Sectoral Shifts

Several factors contribute to the observed sectoral shifts:

• Technological Advancements: Innovations in agriculture and manufacturing lead to increased productivity and a reduction in the number of workers required.
• Capital Accumulation: Investment in factories and infrastructure drives the growth of the secondary sector.
• Urbanization: The movement of people from rural areas to cities provides a larger workforce for the secondary and tertiary sectors.
• Globalization: Increased international trade and investment can lead to the growth of export-oriented industries and service sectors.

Conclusion

The sectoral composition of employment is a crucial indicator of a country's level of economic development. The shift from a primary-based economy in LDCs to a tertiary-based economy in HICs reflects the ongoing process of economic transformation and industrialization.