In market
economies economic systems are typically subdivided into three sectors. This
subdivision (is based) in part on economic activities pursued and in part on
the type of wants satisfied. The primary sector comprises basic activities, the
extraction of economic goods from nature: agriculture, forestry, hunting and
fishing, though the extraction of minerals (is frequently assigned) to the
secondary sector which comprises handicrafts and industrial manufacturing of
goods and certain material services such as fuel and power and the provision of
water. Lastly, the tertiary sector (consists of) all final services: trade,
transport, banking and insurance, public services, etc.
In this context it is worth analysing the development of British economy since
the British were Europe's first industrial
nation.
Anyone who (studies) economics knows that in every country the first resource
is land. Densely-populated Britain
has not much of it, but until the 18th century England's economy (had been based)
on agriculture and the manufacture of woolen cloth. In the late 18th century,
the Industrial Revolution (allowed) Britain to become the first
industrialized trading nation.
For 200 years manufacturing has been more important, but by the 1970s it (had
been) clear the Britain's
old manufacturing industries were less progressive than the same industries in
other Western European countries. Newer industries, such as car manufacture,
were no better than the older ones like textiles. In general, the value of
goods produced by a hundred workers had for many years increased much less than
in West Germany.
In some factories there (was) not enough new equipment; in others, new
equipment was not being used efficiently. Many of the old industries (were owned)
by the state.
After 1979, when Mrs. Thatcher's government (came) to power the nationalization
process (was reversed), many enterprises (were sold) off to the private sector.
Many plants (were closed) and in a few years those which survived were no
longer needing subsidies. New "high-tech" industries developed.
Although manufacturing continues to play an important role, the number of
people employed in manufacturing (fell) by a quarter in 1979-84.
Contrary to the secondary sector, the service industries expanded. More than
half of all working people, whether employees or self-employed, are now
providing services, working for schools, hospitals, social services, in public
administration, in finance, banking, insurance, advertising, catering and
entertainment.
Another recent change has been in the growth of self-employment. During the
1980s, the number of people working for themselves, and not as employees, (has
risen) by half, from two million to almost three million, or more than
one-tenth of the whole working population. This development (is encouraged) by
the government through training courses and tax incentives.