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C H A P T E R 12
Sectors of the Economy
12.1 FIVE SECTORS OF THE ECONOMY
Economists define sectors of the economy (Table 12.1).
Table 12.1: Five sectors of the economy
Sector Activities
5. Quinary Sector Decision making
4. Q
uarternary Sector Knowledge and ICT industry
3. Tertiary Sector Service industry
2. Secondary Sector Transforms raw materials into products—manufacturing, etc.
1. Primary Sector Extracts raw materials from nature—agriculture, fi shing, etc.
e primary sector is agriculture, fishing, etc.; they extract raw materials or basic food from
nature. e secondary sector is manufacturing, etc.; they transform raw materials into products.
e tertiary sector is the service industry. ese three sectors are well known. e quaternary
sector is knowledge and ICT industries.
But, I don’t believe many readers have heard about the quinary sector. is sector is as-
sociated with decision making. Economists point out that after the quaternary sector, decision
making will play a crucial role in the economy.
12.2 QUINARY SECTOR
We have discussed earlier that there are two kinds of rationalities. One is tactics-based. e other
is strategy-based. We further pointed out that strategy is quickly changing from long-term to
short-term and its role is changing from providing a goal to tactics to decision making as to how
we can adapt to the frequent and extensive changes.
us, the new quinary sector which economists proposed sounds very adequate and to the
point. We are moving from a tactics-oriented strategy to adaptability-centric strategy. us, the
role of decision making is increasing in importance.
68 12. SECTORS OF THE ECONOMY
12.3 DECISION MAKING: YESTERDAY AND TODAY
Decision making which economists take up is that of the highest level in the society. ey discuss
decision making in the producer-centric frame of mind and their discussion is based on a tree
structure society. But, as pointed out many times earlier, society is changing rapidly from a tree
structure to a network to respond to the rapidly changing situations.
Indeed, decision making becomes crucially important. But it is decision making in a net-
work environment. And as decision is called for every minute to cope with the rapid changes.
Only players know how the game is going on. us, decisions must be made by a playing man-
ager on the pitch, not the manager off the pitch.
Again, we must remember decision making yesterday was to establish a goal for tactical
operations, and it does not change over time. However, decision making today is to find ways
to adapt to the changing situations.
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