Primary Economic Activity

Primary economic activities involve extracting raw materials from the Earth, for example, mining for mineral ores, extracting and planting crops. Caribbean countries have various primary economic activities such as oil and gas extraction in Trinidad and Tobago, sugarcane production in Guyana.

Secondary Economic Activity

Secondary economic activities involve taking raw materials extracted in primary economic activities and refining them or manufacturing them into a new product adding value and use, for example, refining oil into petrol for cars or bottling water.

Tertiary Economic Activity

Tertiary economic activities refers to activities that offer services, for example, transportation, education, healthcare, etc. Tourism is a major part of the economy of Caribbean islands such as Barbados, St. Lucia, Jamaica and more, offering various hospitality services like hotels, restaurants, entertainment and more.

Quaternary Economic Activity

Quaternary economic activities involves the use and development of information technology for example, online banking, scientific research, software development and use of media. Professions in this sector often requires highly skilled/educated persons.

Role In Development

Less developed countries usually start off with predominantly primary economic activity which provides raw material, however, this makes the economy vulnerable to fluctuations in the market. For example, sugar cane revenues vary based on the export market and pests. This is why it's important to diversify the economy.

As countries develop, secondary industries are set up which involve manufacturing raw materials into new finished products. This is known as industrialization and often provides jobs for more skilled persons as well as higher income for both individuals and the country. Despite the benefits, industries often increase pollution.

When countries become developed there is often a plethora of tertiary activities, that is, the provision of services which increases quality of life and aids in economic diversification. Quaternary involves a lot of research and development promotes sustainability and growth in the country. A mix of all 4 makes for a perfectly diverse economy.