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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)