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In this section you'll contrast different employment and
working conditions in Vietnam and Malawi.
Welcome to Vietnam!
it's July and the monsoon season in Ho Chi Minh City, Vietnam.
That means a wet motorbike ride to work for Dang Thu Hoan,
one of the city's many textile workers (see the photo). She
works in a huge clothing factory there.
Ho Chi Minh City is booming- its population of 6 million
in 2004 rose to nearly 8 million by 2012 (nearly the size of
London). In the monsoon season , traffic gets clogged up in this
busy city as the roads flood.
.A Dang Thu Hoan in a clothing factory in
Ho Chi Minh City.
Vietnam is typical of many Asian countries,
with growing cities full of people who have left
traditional rural lives. Manufacturing jobs are
increasing, so people are moving to urban
areas where these jobs are located. Dang
Thu Hoan's factory pays her US$8 a day for a
nine-hour shift- double Vietnam's minimum
wage. She works a six-day week, but it's easier
than for many of her family in the countryside.
In some rural areas there is now a shortage of
young people, with only older family members
left to farm . As industry expands in the cities,
fewer people work as farmers.
.A A modern textile factory in Ho Chi Minh City, Vietnam.
Why is Vietnam booming?
Vietnam plays its part in an increasingly
globalised world -one in which large companies
in the world's High Income Countries make
production to Vietnam, contracting Vietnamese
factories to manufacture products for them . In
California, the minimum wage is US$8 per hournine times higher than in Vietnam.
products in countries where wages are low. In
Few companies are as good as the one that Dang
Dang Thu Hoan's factory--.- one of Vietnam's
Thu Hoan works for. Many Vietnamese workers
best for pay and conditions - a wage of US$8 a
work long hours, in sweatshops, for far lower
day means that labour is much cheaper than in
wages. They produce goods that are exported
the USA Companies making clothes (e.g. Gap)
(sold overseas) which increases Vietnam's Gross
and sportswear (e.g. Nike), out-source their
Domestic Product (GDP) - or its income.
Welcome to Malawi!
Meanwhile, in Malawi (eastern Africa), Liena sets out to
work on her smallholding. Like half of Malawi's farmers,
Liena has about 1 hectare of land, which she cultivates
to provide almost all of her family 's food. She is a
subsistence farmer- producing just about enough to
feed her family, plus some tobacco and groundnuts to sell.
Nearly 85% of Malawi's population lives in the
countryside. Liena uses hand tools and relies heavily on
family labour. If she had more produce to sell , she'd have
more income - and with more income she could afford
fertiliser or better tools. Until this happens, her income is
unlikely to increase.
A
Traditional farming methods in Malawi
Industrialisation
Vietnam
900
Since 1990, Vietnam has seen rapid industrial growth,
known as industrialisation - an economic and social
Agriculture: 22.0
Industry: 40.3
process:
• Economically, it involves using money (or capital) to set
up factories, turning raw materials (or primary products)
into manufactured goods (or secondary products). This
adds value to raw materials. A piece of furniture, for
Malawi
I
~~~~~= Agriculture:
Services: 37.7
48.0
Agriculture: 30.3
Industry: 16.7
Services: 53.0
Industry: 22.4
Services: 29.6
Agriculture: 90.0
Industry and
Services: 10.0
95.32 billion
0.91 billion
clothing, shoes,
electronics,
wooden
products,
machinery, rice
tobacco (53%
of the total), tea,
sugar, cotton,
coffee, peanuts,
wood products,
clothing
example, is worth more than a block of wood .
•
Socially, it relies on workers who are prepared to move
from rural areas (the countryside) to urban areas (or
cities) . Most secondary jobs are in urban factories.
Because manufactured goods are worth more than raw
materials, urban wages are often higher than rural.
Many factory goods are made for sale overseas (export), which A comparing the economies of Vietnam and Malawi (2011).
adds to a country's earnings (its Gross Domestic Product).
Countries with more industry tend to have a higher GDP.
your questions
1· Copy and complete the table about the advantages
and disadvantages of Dang Thu Hoan's life and
working conditions in Vietnam, compared with
Liena's in Malawi.
Dang Thu Hoan
(Vietnam)
I
Advantages of her life and
working conditions
Disadvantages of her life
and working conditions
I
Liena (Malawi)
2 Explain how industrialisation has given Vietnam a
higher GDP per person than Malawi.
3 Exam-style question
a Study the table comparing the economies
of Vietnam and Malawi. Identify four pieces
of evidence to show that Vietnam is a moreindustrialised country than Malawi. (4 marks)
b Outline one benefit and one problem that
industrialisation can bring to a country. (4 marks)
+
In this section you'll learn about how employment changes, and
how the Clark Fisher model can explain this.
Employment and industry
Industry provides employment. Employment and industry can be
classified into four main groups, or sectors:
Primary
employment:
1.4%
• Primary industry - the extraction of raw materials
from the land or sea, e.g. farming , fishing ,
Secondary
employment:
18.2%
quarrying, mining.
• Secondary industry- manufacturing, where raw
materials are converted into a finished product, e.g.
house bui lding, car making, steel processing, food
Tertiary and
Quaternary
employment:
80.4%
processing.
• Tertiary industries - or services. There is a wide
range of service industries associated with both
manufacturing (e.g. distribution, retailing) and
A. The UK's employment structure in 2011.
people (e.g. education, nursing).
• Quaternary industries - provide information and expert help.
They are often associated with creative or knowledge- based
industries, especially IT, biosciences, media, etc.
Together, the balance of these is known as
a country's employment structure (see the
pie chart).
100
A company can employ people in different
ways. Someone whose job is manufacturing
cars is part of the secondary sector. But the
sales people for the same company are in
the tertiary sector.
90
80
70
~ 60
50
.In the UK, there has been a major change
40
in the types of jobs that people have been
doing over the past 40 years, as the graph
shows. There has been a drop in primary
and secondary employment, and an increase
in the tertiary and quaternary sectors
(which now account for about 80% of all
UK employment). So the UK's employment
structure has changed - but why?
30
-
%agriculture (primary)
-
% manufacturing (secondary)
-
% service and expertise
(tertiary and quarternary)
-----~----
-----------
20
-----
10
0
CX)
('-.
())
0
CX)
())
N
CX)
())
'<t
CX)
())
,...-
(!)
CX)
())
CX)
CX)
())
0
())
())
N
())
())
'<t
())
())
Year
A. Changing employment in the UK, 1978-2006.
(!)
())
())
CX)
())
())
,...-
0
0
0
N
0
0
N
'<t
(!)
N
N
0
0
0
0
80
The Clark Fisher
model
70
Two economists, Clark and
1J
Fisher, produced a theory- or
0
model -that helps to explain
changes in employment
tertiary
(services)
60
Q)
>- 50
Q.
40
E
Q)
~
30
structure over time. As
20
countries develop their
10
economies, Clark and Fisher
0
Pre-industrial
Industrial
said that they go through
three stages (see the graph):
Post-industrial
Time
.&. The Clark Fisher model.
A Low-income countries are dominated by
the primary sector (pre-industrial).
B Middle-income countries are
tertiary sector develops as people start to
use more services, -leisure, banking and
insurance. Finally, the quaternary sector
dominated by the secondary sector
develops as tertiary services become more
(industrial). As economies develop and
specialised , such as IT, legal or medical
incomes rise, the demand for agricultural
services, the media. Many countries in this
and manufactured goods increases.
category have lost their manufacturing -to
C High-income countries are dominated by
the tertiary and quaternary sectors (post-
countries like Vietnam, where wages are
lower (see Section 11 .1 ).
industrial). As incomes continue to rise the
Welcome to France!
France
Like many high-income countries, the French economy is
changing. it has very healthy quaternary employment in
GDP per person
(in US$)
35 600
cities, but it's also kept much of its manufacturing industry
Where France's
GDP comes from
(%)
Agriculture: 1.8
Industry: 18.8
SeNices: 79.4
Percentage
of people by
occupation
Agriculture: 3.8
Industry: 24.4
SeNices: 71.8
(Peugeot, Citroen and Renault are three of the world's largest
car companies). However, unlike Vietnamese factories, most
French factories rely on technology, rather than people, to
produce goods like cars.
French farming is also healthy, but a lot of
the work is now automated. Many French
farmers rent out their land to larger farms
with more machinery, or they convert
their farmhouses to rent out as 'gites' for
tourists. So rural primary employment has
declined, whi le the tertiary economy is
growing.
your questions
1 Make a copy of the Cl ark Fisher model and annotate it
with the current position for a Vietnam b UK c France.
Give evidence to show why this is the case for each
country.
2 Research ten job vacancies in your local area and an
overseas city of your choice. Classify them into primary,
secondary, tertiary, and quaternary. What do you find?
3 Exam-style question Study the table above. Identify
three pieces of evidence to show that France is a highincome country. (3 marks)