What is the role of the primary sector in the economic development of developing countries in West Africa and the rest of the world? The primary sector helps the general population in many ways. It also contributes to the development of the secondary and tertiary sectors of the economies of developing countries. Overall, the primary sector is a major contributor to the Gross Domestic Product or national income of developing countries in West Africa, for example.
In this tutorial, I will show you the details of the role of the primary sector to economic development. Are you studying Economics for your WAEC or NECO examination? Economics is a key subject in the General Arts programme in most senior high schools. So, if you’re about to sit for the WASSCE/SSCE Economics paper, you must be prepared to answer a question on the contribution of the primary sector to the economy.
First, take a look at a summary of the role of the primary sector in the economic development of countries in West Africa, Asia and South America.
You must also be aware that the primary sector is variously referred to as “natural resources”, “agriculture” and “extractive industries”. This is because, these sectors of economic activity are closely linked to the primary sector.
Summary of the Role of the Primary Sector
- Provision of food
- Source of raw materials for local industries
- Provision of foreign currency
- Source of employment
- Source of capital
- Market for manufactured or industrial goods from the secondary sector
- Market for services from the tertiary sector
- Source of medicine or drugs
- Contribution to gross domestic product (GDP)
Now, let’s have some details on the role of the primary sector in economic development.
1. Provision of food
One key role of the primary sector in many developing economies is that it provides food to feed the population. A direct benefit is that the labour force gets the energy and strength from food from the primary sector. Maize, cassava, plantain, yam, vegetables are a source of much needed carbohydrates for the population. Meat and fish, for example, come from the primary sector to meet the protein needs of the people. This enables the working population to be highly productive and thereby, contribute to the growth of the economy.
2. Source of Raw Materials
Secondly, the primary sector provides raw materials to feed the industries in the secondary sector of the economy. Thus, the secondary sector is able to develop with the support of the raw materials coming from such extractive economic activities as agriculture or farming, lumbering, mining and the like.
3. Provision of Foreign Currency
A third contribution of the primary sector to economic development is that it helps developing countries such as The Gambia, Sierra Leone, Liberia, Nigeria and Ghana to obtain much needed foreign currency. This comes in the form of export revenue. Developing countries export such primary commodities as groundnut, coffee, fish, cocoa, timber, gold, diamond, copper and petroleum in order to obtain such high value currencies as the US dollar and the Euro. It is this export revenue that enables West African countries to finance their imports and also to implement infrastructural development projects.
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4. Source of Employment
According to recent statistics, a fairly large segment of the working population are in the primary sector. This is primarily due to the fact that West African countries and other less developed economies have not been able to expand the secondary sector significantly enough. Peasant farming, livestock production, traditional methods of mining and fishing have therefore continued to be a major source of jobs and household income for many.
5. Source of Capital
Incomes from the primary sector also make it possible for developing economies to create capital for investment. This often comes from savings that farmers and other primary sector workers are able to make with the banks and other financial institutions. Again, export revenue provides capital for investment in other productive sectors of developing economies.
6. Market for Manufactured Goods
Furthermore, the primary sector serves as a large market for goods that are produced in the industrial sector of the economy. The high demand for processed commodities in most developing economies is quite high. Farmers, fishermen and miners use their incomes to buy such manufactured products as clothing, medicine, and all forms of building materials. This is how the primary sector plays a major role in helping to support the growth of the secondary sector.
7. Ready Market for the Tertiary Sector
Just like the secondary sector, the tertiary sector also benefits from the primary sector’s ever increasing demand for services. For example, many farmers and fishermen use part of their earnings to pay for the services of schools and teachers (for their children), health care providers, banks, insurance companies, mobile telecommunication service providers, tailors, and other utility providers.
8. Source of Medicine
The role of the primary sector in economic development relates to health care as well. In most developing countries, in particular, herbal medicine originating from the primary sector has continued to contribute to the health needs of the populations. Compared to orthodox medicine, herbal medicine is a cheaper way of treating many diseases. Thus, the primary sector has helped in no small way to keep the working population healthy. It has also helped governments to push their import substitution policies forward. This is because, traditional herbal medicine has proven to be a good alternative for imported drugs. We must also not forget that, as a result, import expenditure is scaled down thereby helping to deal with the problem of persistent balance of payment deficits.
9. Contribution to Gross Domestic Product
Finally, the primary sector is the single most important contributor to the GDP of most developing economies. The national income statistics of these countries have always shown the huge role the primary sector plays in producing the bulk of the wealth of these countries.
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Final thoughts
As you can see, the role of the primary sector in economic development in West Africa is big. The primary sector is in the forefront of providing jobs, food, medical care and infrastructure to the billions in developing countries across the globe.
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