ECONOMIC GEOGRAPHY
It is the study of the location and distribution of economic activities.
THE STRUCTURE OF THE ECONOMY
Primary Sector: Extracts that harvests raw materials from the Earth/sea
E.g.: farming, mining, forestry, fishing
Secondary Sector: Manufactures finished goods from products produced in the
primary sector. E.g.: construction, engineering, textile production, food processing
Tertiary Sector: The service industry sector, providing services to the general
population and businesses. E.g.: retail, wholesale, tourism, insurance, banking
Quaternary Sector: Provide information and expertise with an emphasis on
information and computer technology. E.g. GIS, research
WHAT ARE THE ECONOMIC SECTORS’ CONTRIBUTIONS TO THE SOUTH
AFRICAN ECONOMY?
GDP: the total value of all goods and services
produced over a specific period.
GDP is the main indicator to measure the size of a
country’s economy.
GDP and development :
Developed countries:
- small % in primary sector.
- Majority are involved in tertiary sector.
Developing countries:
- Majority are involved in
primary activities.
- Small % in tertiary sector.
,AGRICULTURE: WHAT IS THE CONTRIBUTION OF AGRICULTURE TO THE SA
ECONOMY?
Agriculture or farming is the growing of crops and also the rearing of livestock.
Agriculture contributes a small and declining share to SA’s GDP.
Agriculture provides:
- Food for the population.
- Jobs, especially in rural areas
- Earner of foreign trade (SA exports more food than it imports) therefore
contributes to a POSITIVE balance of trade
- Direct contribution to the GDP
1. Direct contribution of agriculture to the GDP
The agriculture sector has grown by 12% per year since 1970, while the total
economy has grown by 15% per year over the same period. This shows that
agricultures contribution to the economy is dropping.
2. Supply of food to the population
SA agriculture is able to provide food for the population. If SA does not continue to
produce enough food the following could occur:
- Food would have to be imported
- If families cannot pay, food insecurity will increase and civil unrest could
follow.
This means: If SA experiences economic growth, demands for agriculture will
increase.
3. Contribution to the country’s Balance Of Trade
25% of SA’s field crops and 34% of horticultural products (garden products) are
exported. Almost the whole wool clip is exported. Agriculture contributes about
10% of SA’s total exports.
, 4. Employment
Like most agricultural countries machines have replaced human labour. The
agriculture employment figure dropped in 2011, with a loss of over 1,2 million
workers.
Agricultures role in the economy also consists of backward and forward linkages.
Backward linkages: The primary industries purchase goods from the manufacturing
industries which include fertilizers, chemicals and agricultural implements.
Forward linkages: When one industry produces the raw materials for another
industry.
What are the roles of small-scale and large-scale farmers?
Large-scale commercial farming: Production of crops for sale in retail outlets such as
shops (to make a profit).
Commercial farming includes livestock production and livestock grazing.
It is most often extensive farming: small amount of agricultural produce is obtained
from a large area E.g. Pastoral Farming.
It can also be intensive farming: Both of crop plants and of animals, with higher
levels of input and output per unit of agricultural land area E.g. Poultry
Small-scale subsistence farming: Usually intensive (work done by the farmer and his
family). Nearly all crops and livestock are used for the farmer and their family
therefore little surplus left to sell. Little technology is used.
Difference between subsistence and commercial farming
It is the study of the location and distribution of economic activities.
THE STRUCTURE OF THE ECONOMY
Primary Sector: Extracts that harvests raw materials from the Earth/sea
E.g.: farming, mining, forestry, fishing
Secondary Sector: Manufactures finished goods from products produced in the
primary sector. E.g.: construction, engineering, textile production, food processing
Tertiary Sector: The service industry sector, providing services to the general
population and businesses. E.g.: retail, wholesale, tourism, insurance, banking
Quaternary Sector: Provide information and expertise with an emphasis on
information and computer technology. E.g. GIS, research
WHAT ARE THE ECONOMIC SECTORS’ CONTRIBUTIONS TO THE SOUTH
AFRICAN ECONOMY?
GDP: the total value of all goods and services
produced over a specific period.
GDP is the main indicator to measure the size of a
country’s economy.
GDP and development :
Developed countries:
- small % in primary sector.
- Majority are involved in tertiary sector.
Developing countries:
- Majority are involved in
primary activities.
- Small % in tertiary sector.
,AGRICULTURE: WHAT IS THE CONTRIBUTION OF AGRICULTURE TO THE SA
ECONOMY?
Agriculture or farming is the growing of crops and also the rearing of livestock.
Agriculture contributes a small and declining share to SA’s GDP.
Agriculture provides:
- Food for the population.
- Jobs, especially in rural areas
- Earner of foreign trade (SA exports more food than it imports) therefore
contributes to a POSITIVE balance of trade
- Direct contribution to the GDP
1. Direct contribution of agriculture to the GDP
The agriculture sector has grown by 12% per year since 1970, while the total
economy has grown by 15% per year over the same period. This shows that
agricultures contribution to the economy is dropping.
2. Supply of food to the population
SA agriculture is able to provide food for the population. If SA does not continue to
produce enough food the following could occur:
- Food would have to be imported
- If families cannot pay, food insecurity will increase and civil unrest could
follow.
This means: If SA experiences economic growth, demands for agriculture will
increase.
3. Contribution to the country’s Balance Of Trade
25% of SA’s field crops and 34% of horticultural products (garden products) are
exported. Almost the whole wool clip is exported. Agriculture contributes about
10% of SA’s total exports.
, 4. Employment
Like most agricultural countries machines have replaced human labour. The
agriculture employment figure dropped in 2011, with a loss of over 1,2 million
workers.
Agricultures role in the economy also consists of backward and forward linkages.
Backward linkages: The primary industries purchase goods from the manufacturing
industries which include fertilizers, chemicals and agricultural implements.
Forward linkages: When one industry produces the raw materials for another
industry.
What are the roles of small-scale and large-scale farmers?
Large-scale commercial farming: Production of crops for sale in retail outlets such as
shops (to make a profit).
Commercial farming includes livestock production and livestock grazing.
It is most often extensive farming: small amount of agricultural produce is obtained
from a large area E.g. Pastoral Farming.
It can also be intensive farming: Both of crop plants and of animals, with higher
levels of input and output per unit of agricultural land area E.g. Poultry
Small-scale subsistence farming: Usually intensive (work done by the farmer and his
family). Nearly all crops and livestock are used for the farmer and their family
therefore little surplus left to sell. Little technology is used.
Difference between subsistence and commercial farming
