We explain what the quinary sector or fifth sector of the economy is, its characteristics and examples. In addition, the other economic sectors.
What is the quinary sector?
The quinary sector or fifth sector of the economy is the division of human productive activity in which all non-profit services and other non-profit activities (or even unpaid) that, however, are essential for the support of society.
Many of the activities that are part of the quinary sector can also be classified into the secondary and tertiary sectors of the economy, but with the exception that These are not productive activities intended to generate wealth, but rather to sustain the functioning of society and, with it, the other economic sectors. For this reason, these activities have often been made invisible when thinking about the economy and production of societies.
It is important to mention that there is disagreement, among scholars and specialists, about the definition of the quinary sector of the economy. Some authors define the quinary sector as the sector of knowledge and innovation, and the quaternary sector as the sector in charge of information management.
See also: Economic sectors
Characteristics of the quinary sector
The quinary sector is characterized by the following:
- It is a non-profitable or non-profit economic sector whose purpose is to provide stability to society and allow the environment conducive to economic activity. Therefore, it does not usually generate economic profits.
- Requires other sectors to finance itself since it usually depends on taxes or contributions from productive activities for profit.
- Many of the activities in this sector could fit into other sectors like the tertiary (services).
Importance of the quinary sector
The quinary sector It is essential for certain minimum conditions of society to be maintained so that other sectors can operate without interruptions. For example, fire departments must be able to combat fires and other accidents so that they do not impede the normal exercise of work and the normal production of goods and services.
Examples from the quinary sector
Services such as security and public health provide stability to society. Examples of activities in the quinary sector are:
- The security forces and State attention, such as the police, firefighters and border guards.
- Public health organizations such as hospitals, outpatient care rooms and ambulances.
- public education primary, secondary and university.
- The tasks of unpaid domestic work.
- The participation of the Non-Governmental Organizations (NGO) and other forms of political, social and ecological activism.
Other economic sectors
In addition to the quinary sector, the economy includes the following sectors:
- Primary sector. Also called the first sector or productive sector, it is responsible for extracting and processing raw materials from nature so that it can feed the secondary sector, that is, so that it can be transformed into consumer goods. For example: A mining company.
- Secondary sector. Also called the second sector or manufacturing sector, it is responsible for transforming the raw materials received from the primary sector into manufactured or consumer goods, that is, into products ready for the consumer to obtain and use, or into intermediate goods that feed other manufacturing industries. For example: A company that makes nails from iron sheets.
- Tertiary sector. Also called the third sector or service sector, it is responsible for providing other sectors and consumers with some type of profitable service of a defined duration, whether maintenance, information, customer service, among others. For example: Transportation companies or internet providers.
- Quaternary sector. Also called the fourth sector or research sector, it is responsible for innovating and producing new technologies that serve the rest of the sectors to produce more and better, or the consumer to improve their quality of life. It is the sector of knowledge accumulation. For example: Universities and applied technological innovation companies.
Continue with: Public sector
References
- “quinary sector” on Wikipedia.
- “What are the economic sectors into which the activity is divided?” in Creditea.
- “Characteristics of Industry” on BBC Bitesize.
