All activities that do not produce tangible goods are grouped into non-productive sectors, which are also called the tertiary sector of the economy, the first two are mining and processing. Until the mid-90s in the world, and in Russia and before the transition to capitalism in the mid-90s, the sector was considered auxiliary, since it did not produce a significant social product. Now it is a full and increasingly significant sector of the economy. It is believed that the development of the non-manufacturing sector is the main catalyst for economic growth.
The main difference
The main difference between the goods of the manufacturing sector and the non-manufacturing sector is that the goods of the first can be produced in one place and consumed in another, while the goods of the second can be produced and consumed in one place. If the same consumer goods from China are bought all over the world, then you can participate in the tea ceremony only directly in the Chinese or Japanese teahouse. And it’s hard to imagine where, except in a fire, the work of firefighters may be necessary, in some countries the fire department provided paid services for which it was necessary to pay directly, and not through taxes.
True, with the development of non-production sectors, especially those related to information services, not everything is so straightforward, and some services are already provided regardless of distance.
Farther from nature
For simplicity, the first researchers in the non-production sector of the economy included everything that does not apply to the extraction and processing of natural resources. These are all human activities that produce intangible goods and services aimed at directly satisfying material, spiritual, social and other needs. That is, the non-production sphere does not have a direct connection with nature and serves to organize human consumption and maintain its habitat and basically redistributes what is mined and processed in the first two sectors of the economy.
What other features
Simplification does not always help, therefore, the definition that all industries that produce something intangible belong to the non-production sphere had to be supplemented. Highlighted a number of features characteristic of the non-productive sector of the economy. The most obvious - there should be a direct relationship between the manufacturer and the consumer of the product, which also often implies an individual approach. It is hard to imagine that the same hairdressing or translation services can be provided differently. But with the development of information technology, everything is not so clear, the same transfer can occur without direct contact between the consumer and the service provider, and by 2024, according to the UN forecast, artificial intelligence will be able to do this.
Another feature of the non-productive sphere is that the final product is often not materialized. When you listen to music, travel by public transport, then your consumption will end there, although the consequences can be felt for a long time. Now we can safely call a feature of the industry a significant share of intellectual and creative work, which is associated with the digital revolution, the emergence of a large number of new types of services using high technology and artificial intelligence.Even in the largest branch of the non-production sphere - trade, where a lot of low-skilled labor is used, online platforms and offline stores play an increasingly important role. In China, Japan, Korea, whole chain of stores began to work, in which people do not work.
Which industries are included
From the beginning of time, when the rudiments of public consciousness appeared in people, certain types of activity appeared, which were subsequently assigned to the non-production sector. The first leaders, warriors, shamans, if we draw an analogy with the current terminology, are government, security, social services and, partly, healthcare, which are in demand in modern conditions.
Non-productive sectors include: all types of trade, management and security, healthcare and education, science and consulting, transport and public services, domestic and hotel services, financial and information services, art and culture.
Non-productive products
To begin with, when economists realized that non-productive industries are a serious and independent area of the economy, all products of the sector were divided into tangible and intangible services. Material industries included all sectors that provide for the consumption of material goods: hotel services or, if wider, the hospitality service, trade, and now added electronic commerce, domestic and transportation services. Intangible services included all types related to the satisfaction of cultural, religious, spiritual needs and activities related to the creation of the external environment for human life, from security, environmental protection to religious cults, health care, education and art.
Recently, products of non-productive industries have also begun to be divided into services and intellectual products. The products of creative and intellectual activity have been valued at all times, but in a post-industrial society, where almost all activities are based on knowledge, the value of intellectual products increases in an avalanche-like manner, as does its share in the non-production sector. Because of this, they now propose to allocate all the activities for the production of knowledge into the Quaternary sector - the intellectual one.
There will be more
In developed countries, non-productive sectors already occupy up to 80 percent of the economy, and more than two thirds of the employed population work there. In developing countries, including Russia, about 50 percent. Not only is the sector's share in the economy increasing, but also new types of services are appearing, especially in industries related to digital technologies. Products also acquire new qualitative characteristics, such as the ability to be stored, accumulate, and transmitted over distances. Very soon it will be necessary to give new definitions to the non-productive sphere, its features and characteristics.