The Global Service Economy: Structure and Growth Drivers

The Tertiary Sector: Definition and Scope

The tertiary sector is the economic sector that includes activities that do not produce tangible goods, but provide services to the population.

Superior (Quaternary) Activities

These activities are related to high technology and science, often involving specialized knowledge (e.g., business management, research, and development).

Banal Activities (Low-Skill Services)

This sub-sector is devoted to jobs that require little academic preparation and are usually poorly paid.

Drivers of Tertiary Sector Growth and Social Change

• Increased Life Expectancy: Leading to greater demand for elderly or dependent care services.
• Inclusion of Women in the Workforce: Increasing demand for services previously performed domestically (e.g., childcare, specialized domestic work).
• Reduction in Working Hours and Paid Leave: Providing more time off and increasing the importance of the tourism sector.

Characteristics of Service Activities

• Heterogeneous: Services show great diversity in type, staff qualifications, and organizational dimensions.
• Intangible: Services cannot be physically held or stored.
• Unable to Store: Supply and demand must be coordinated simultaneously.
• Proximity to the Consumer: Services are often provided near the consumer level.
• Uneven Distribution: Services are relatively unevenly distributed geographically.

Classification of Tertiary Services

Services are typically classified into four main categories:

1. Social Services

   Provided for people to meet their most basic needs (e.g., health, education, justice).

2. Distribution Services

   Used to transport and exchange goods, information, and people (e.g., transportation, communications).

3. Business Services (Services to Companies)

   Provide specialized services directly to companies (e.g., research, advertising, corporate management).

4. Consumer Services

   Provided directly to people, though not all are considered basic necessities (e.g., leisure, tourism, retail trade).

Global Health and Life Expectancy

Factors Improving Life Expectancy

Life expectancy has improved significantly due to:

• Improved Nutrition: Thanks to progress in new crops and agricultural techniques.
• Hygiene and Sanitation Progress: Including the development of sewage systems, regular garbage collection, reliable water supply to homes, and the widespread use of soap.

Health Challenges in Developing Nations

Poor nations often lack basic health services and suffer the ravages of infectious diseases. While preventable with vaccines and drugs on the market, these nations often cannot afford them. Common issues include:

• Tuberculosis (TB)
• Diarrheal illnesses
• AIDS
• Other infectious diseases (e.g., those preventable by vaccination)

Health Trends in Developed Nations

Rich countries have increasingly advanced scientific and technological means to combat diseases. However, these nations face increasing rates of certain diseases resulting from unhealthy lifestyles, such as:

• Cardiovascular disease
• Diabetes
• Cancer

The Rise of Tourism

Drivers of Tourism Growth

Increased tourism is driven by:

• Increased leisure time.
• A welfare society that covers basic needs.
• Widespread use of personal automobiles.

Classification of Tourist Emitting Centers

Tourist resorts are classified based on their distance from the emitting centers:

• Nearby: Up to 200 km radius.
• Intermediate Mass: Up to 2,000 km radius.
• Distant: Over 2,000 km radius.