E CONOMIC G EOGRAPHY

1. ECONOMICGEOGRAPHY • Economy and geography • Economy, space and time • A) Economic spatial theories • B) Growth and development theories • Economy and ecology • Globalization as a consequence of technological change • Summary and discussion

2. Economic Geography 1 Economy and geography

3. What is “economy”? • Oikos = house, household • Provisions for the house • Related to goods, objects (especially material) • Cycle of materials (from raw materials to a finished product) • Profit

4. Elements of definitions • Production and distribution of goods • Production in order to satisfy a demand • Balancing the demand for goods with the supply from a limited stock of resources • Produce for one‘s own needs (subsistence) • Produce for the needs of others (surplus)

5. What is “geography“ • Spatial science • Structures and processes • SPACE and TIME

6. Economic geography is ... … a geography of man's struggle to make a living. As such it should concern itself with the production, use and reproduction of the social and material conditions of man's existence. In fact economic geography is firmly asocial. Emphasis has traditionally been placed upon the production and the use of the environmental and man-made material conditions of existence.(Lee, Dict. Human Geography)

7. Environmental science Economics Cultural geography Social sciences, humanities Where do we place economic geography ?

8. Work – work? • Associated with the economy • Activity • Remunerated? • Pleasure and satisfaction? • A chore?

9. A typology of work Activities Free time Work Unremunerated Remunerated Household Voluntary ‘economy’ ‘Grey’ economy Formal economy Illegal activities Legal activities

10. Views of the economy • Investor: profit, shareholder value • Entrepreneur: a challenge • Employee: a job, a salary • Citizen: almighty power • Politician: source of income and influence • Geographer ?  see next

11. A modern view of the economy • A complex system • Human activities, based on rational and irrational decisions • Limited predictability • Embedded in the natural environment • Part of the social environment • Directed by changing perceptions

12. Soft technologies Solidarity Egoism ? Hard technologies The future economy in a twofold dilemma

13. The future economy and sustainable development • Sustainable development means to guarantee that future generations can continue to live on this earth. • This implies that we take care of the basic requirements of the ecosystem (the basis for all human existence on the planet). • Which way leads to an economy that has the potential to guarantee the survival of mankind over a long period? • Can technology alone achieve this goal?

14. The 3 economic sectors Classification of the economic activities: • Primary sector: preparing the raw materials • Secondary sector: transforming the raw materials into manufactured products • Tertiary sector: ensuring the functioning of the economy

15. Tertiary % Secondary Primary time The dynamics of the three sectors (Fourastié model)

16. Characteristics of the sectors • Primary sector: agriculture, forestry, hunting, gathering, fishing, mining • Secondary sector: manufacturing, construction work • Tertiary sector: ‘all the rest’ – but in a highly differentiated way

17. The tertiary sector • Always present, but in 20th century growth in importance and differentiation • Comprises a variety of activities that demand different skills, are of unequal importance for various human groups and has both a public and a private side • Can be classed according to a choice of perspectives

18. Public, non competitive Private, competitive Archaic/traditional Modern Common Rare Production-oriented Consumer-oriented Management Service Possible definitions of the tertiary sector (A. Bailly)

19. General comment • The T-sector is more complex than the P- and the S-sectors as it finds itself in a mediating position: both P and S require services • We use all forms of the T-sector, but at different times and with varying frequencies

20. Specific comment • Public/private: self-explaining • Archaic/modern: bound to history (pre-industrial vs. post-industrial) • Common/rare: self-explaining • Production/consumer-oriented: services for firms vs. services for households • Management/service: self-explaining; service = executing, not directing

21. Dimensions of the T-sector • The Bailly classification shows the breadth of the service domain • Traditional classifications use six groups of activities: administration, trade, finances, education, communication, health • They have to be confronted with the entire breadth to show a clear picture of this field • This yields 60 combinations – clearly too much for a simple classification!

22. 2-dimensional T-sector

23. Informal economy • Activities that are legal as such but not bound to formal places and installations (street vendors, street musicians) • They offer a service close to the passer-by who is a potential customer (e.g. the hairdresser or the dentist on the roadside in India)

24. Illegal (‘black’) economy • Activities that are forbidden by law (drug dealing) • Activities that are legal as such but are exercised under specific conditions: - illegal workers (low salaries, no social security, exploitation) - Saturday and Sunday work for friends that are not declared (no taxes and social security premium paid) • Such activities are pursued by the state

25. The clandestine economy • Being an ‘underground‘ field, there are no official figures on its share of the GDI • Estimates (1980s): - US 13-14 % - Italy 10-25 % - England 7-8 % - Switzerland 3-5 % • Figures are subject to change according to knowledge and investigation