The economy is the basis for the development of countries, states, businesses and people. It may seem that it is something whole, but in reality it is not. In reality, the economy is heterogeneous, because it consists of sectors. Within the framework of the economy, it is customary to allocate 5 sectors: primary, secondary, tertiary, quaternary and quintuple. In some countries, all sectors are present in the economy, including the post-industrial economy, and in other countries only some.
But that’s not all, because the economy has levels that are related to the levels of development of civilization. To date, it is customary to distinguish 7 levels of the economy on this basis: Neolithic, early class, ancient, medieval, early industrial, industrial and post-industrial. In one form or another, the global economy as a whole is represented by both different sectors and different levels.
In some places, such as in remote Amazonian tribes, there is still a Neolithic economy, and in some places, such as in developed countries, there is already a post-industrial economy. Some countries have a clearly defined level of economy, and some are in a transitional phase. Hence the difference in the amount of GDP that can be created in a particular economy.
Why was it necessary to divide the economy into sectors and levels? It was necessary to divide in order to see the opportunities and abilities of the economy of a particular country in the world, as well as business opportunities within the economy of a given country. Thanks to this division, it is clear what the economy of a particular country is, at what level it is, which sectors are developed in it and which are not, and what kind of business is possible in such a country.
As for the sectors, many countries have different sectors in their economic structure. But as for the levels, the situation is very interesting here, because there are countries where there is only one level of the economy, but there are also countries in which several levels of the economy coexist simultaneously. Accordingly, businesses representing different sectors coexist at the same time.
Today we have 5 sectors and 7 levels of economy
In such countries, some companies operate as if they are still in the Neolithic, while other companies already understand that a post-industrial economy has come, and work at this level. However, the first reason why the economy should be divided into sectors is that at different times, the basis, in other words, the locomotive that pulled the world economy as a whole and the economy of different countries were different sectors and levels. This is a very important point.
Today we have 5 sectors and 7 levels of the economy, which means 35 segments of the economy. In each of them, a business can try itself with a different probability of success. The probability of success increases if a business tries itself in the sector and at the level that is available in the country.
However, the volume of success increases, on the contrary, if you do business within a new level, which is not yet in the country. For example, if you need guarantees of success, then it is very stupid to offer products of the post-industrial economy within the Neolithic, because no one will need them, you will have to try very hard to create demand for them. Only Neolithic products will be needed.
It is very difficult to create a new level and those sectors that do not exist, but at the same time it is very interesting, and maybe very profitable if you are lucky. As a rule, the one who creates a business in some sector of a new level of economy becomes a billionaire. There are many examples, starting from John Rockefeller, continuing with Bill Gates and ending with Mark Zuckerberg. All these people were at the origins of new businesses at new levels of the economy
The world economy began with the Neolithic level and the primary sector. Once it was the main sector of the world economy, once work in this sector and investments in it were the most profitable and profitable. At that time, it was a progressive economy, but compared to the modern economy, it was a primitive economy. For a long time, humanity lived primitively, which means that its representatives hunted and collected all kinds of plants.
At that time, nature itself was the basis, in other words, it was possible to consume everything that is available in nature. At the same time, the technologies were also primitive – the ability to hunt and the ability to collect all sorts of plants. Then various tools were invented that made it possible to massively cultivate the land, and this led to the formation of a new level of economy, which became its basis. It was in this new sector at that time that the main product was produced.