Change in primary secondary and tertiary industries in France

In this Essay we are asked to pick a country in the European Union & analyse the change in one industry each of all 3 industries (primary, secondary & tertiary) since 1980-2010(30 years) In terms of Gross Value Added & Employment.

Our Group Picked France a pivotal member of the European Union and 3 industries Primary; Agriculture, Secondary; Energy, Tertiary; Tourism.

Overview

France is the world’s 5 largest & wealthiest economy. It is the second largest economy in Europe in Nominal terms as of 2010. It also entered the 2008-2009 recessions later and left it earlier than most comparable economies, only enduring four quarters of contraction. As of September 2010 France Economy has been growing continuously since the second quarter 2009.

In the French Primary sector the Agricultural Industry will be treated France has been one of the Most Dominant agricultural centres of Europe for centuries. Currently France still leads Europe (representing alone 20% of the EU’s agricultural production) with about 730,000 farms; approximately 3.5% of the workforce is employed in agriculture the total agric-food industry made up 4.2% of French Gross Domestic Product in 2005. However according to the French ministry of agriculture the share of population involved in farming is decreasing. In the post World War II era, government has made a significant effort to modernize French agricultural production by switching to more scientific methods and modern equipment. The size of irrigated land in 1977 is twice that in 1980.France also ranks second in the EU in milk production, totalling 23.3million metric tons. It’s also the major source of meat and veal in the EU with 1,815,000 metric tons. France also leads the EU in cereal production with 4.1 million metric tons of production; France also holds the leading position in oilseeds in the EU.

The GVA(Gross Value Added) for Agriculture in France in 1980 accounted for 4.67% of the total Gross Value Added with 18,530,438,485Euros it never went a lot higher than this because of the intense competition from rival Markets e.g. (Netherlands, United States & Germany). In 1986 the GVA began to drop as a result of the American Farming crisis and a drop in the Demand for exported Agricultural Products. Farms in France began to shutdown and farmers couldn’t pay up loans & as a result of the Harsh Economic times Demand dropped the GVA in 1986 accounted for 4.19% of the total GVA with 30,030,711,895Euros by 1989 demand went up and Farms were recovered back with government loans and the GVA for 1989 accounted for 4.02% with 35,195,176,952Euros and in 1990 the GVA accounted for 4.01% of the total Gross value added with 37,069,487,524Euros it stagnated a little in the 90’s as a result of farmers loan default and some farms were seized the intensity of the overall competition contributed also to this fall in GVA then by the new millennium 2000 the GVA accounted for 2.73% of the total Gross value added with 35,242,000,000Euros. The GVA fell a little in 2006 as a result of the recession and a fall in demand from international community but by 2010 it accounted for 3.35% of the total Gross value added with 34,456,734,000Euros.

GVA from France Agriculture From 1980-2010

Employment in the French Agricultural Industry in 1980 Accounted for 8.38% of the total number of people employed that year it continued to drop with time as most farms opted for modern Agricultural Machinery to work on their Farms & replace Human Labour e.g. Instead of threshing grain by beating with sticks Threshing machines separates the seeds Stalk and head. By 1990 employment in agriculture accounted for just 5.57% of the total number of people employed a decrease by 2.82% from 1980 and by 2000 Agriculture accounted for just 3.83% of the total number of people employed and kept dropping as new Agricultural Technologies came in place by 2010 Agriculture accounted for just 3.50% of the total people employed. See Figure 1.2

fig 1.2

Employment in France’s Agriculture 1980-2010

In the Secondary Industry the Energy Industry will be treated this Industry includes all industries that are involved in the production process and sale of energy. This also includes the Extraction of fuel, refining of Fuel & the Manufacturing &Ditribution.IN the France today consumption of energy is very large making the Energy industry play a pivotal role in the Economy. In France Nuclear Power is the main source of Electricity research shows that in 2004 nuclear power accounted for 78% of the country’s total electricity production Hydro Electricity 16.2%, Thermal 9.2%wind power and other recyclables 0.1%. France’s Nuclear Energy possesses the highest percentage in the world (with 75%). The decision to lunch a larger nuclear program started in 1973 because of the doubling of prices by Opec Countries because at 1973 most of France’s Electricity came from oil burning plants It then Introduced History’s most comprehensive national nuclear energy program and within 15 years was supplying nuclear energy to some European countries. Program. Also as of 1982 France was the world’s largest net exporter of electric power accounting for 18% of its Total Production also having one of the lowest electric costs in the world.

Electricity Production in France from 1980-2010

The Gross Value added from the French energy industry in 1980 accounted for 23.8% of the total GVA for that year it continued to rise by 1990 the French Energy GVA accounted for 20.46% of the total

Tertiary (Tourism)

In the French Tertiary sector the tourism Industry will be treated. Paris the capital city has since the 1980’s been the most visited city in the world attracting well over 15,000 tourists a day with museums such as the louvre, Musee d’Orsay also popular tourist attractions such as the Eiffel tower, Cathedral of Notre-Dame & Disneyland Paris. Tourism is accountable for 6% of France’s National Income, France attracting well over 81.9 million tourists in 2007 (surpassing its population), a 3.8% increase compared to 2006, making it the the world’s most popular tourist destination. France also home to the world’s largest museum & the most visited museum in the world which was opened on 10 August 1793 is operated by the French government. In 1987 the Maison de la France was set up & was put in charge of promoting France as a tourist destination. Although France has often maintained its leading position since the end of the 1980s with over 70million tourist, the number of arrivals stagnated significantly by 15% in the first half of the 1990’s. However, from 1996 the number of arrivals to France rose significantly, to get back to its top position in 1998 with 70 million Tourists. Compared with Spain (47.7 million) & the United States (47.7 million), it is the world’s greatest tourist receptor country, with 11.2% of the Total Global arrivals.

Tourism in France grew rapidly with a significant arrival of mass tourists in the 1960’s & 70’s. This however resulted in a lift in the economy and the creation of employment in regions which had been bypassed by economic development.

The most popular tourist sites include: (according to a 1982 ranking visitors per year):

Eiffel Tower (6.2 million),

Louvre Museum (5.7 million),

Palace of Versailles (2.8 million),

Musée d’Orsay (2.1 million),

Arc de Triomphe (1.2 million),

Centre Pompidou (1.2 million),

Mont-Saint-Michel(1 million),

Château de Chambord (711,000),

Sainte-Chapelle (683,000),

Château du Haut-KÅ“nigsbourg (549,000),

Puy de Dôme (500,000),

Musée Picasso (441,000),

Carcassonne (362,000).

France is by far the world’s greatest tourist receptor country, with 11.2% of the total world arrivals.

The World Tourism Organisation Surveys shows that France received $29.7 billion from tourism in 1998 a 6% rise from 1997. It also shows that employment rates in all Tourism related sectors accounts for more than one million jobs by 2010,75% of which a permanent jobs. Employment in the French Tourism Industry consists of employment in all French Tourism related sectors. Which include Hotels, Restaurants, Museums, Public Houses, Bars, Clubs Travel agents, & Tour Operators. In 1996 the Hotel capacity in France Consisted of 20,000 hotels and more than 600,000 rooms.

From the 1990’s up until 1996 the number of international arrivals hadn’t moved and stayed at approximately 60 million Tourists a year meaning France was losing its market share in the early 90’s. However in 1998 as a result of France Hosting the 16th Fifa world cup Arrivals Rose substantially according to the World Tourism Organisation Statistics show that international Tourist Arrivals to France increased by a substantial 4.7% from 1998 on.

Employment in all Tourism related industries in the 1980’s totalled 589,500 people employed accounting for 2.66% of the country’s total Employment and went up significantly through the decade with an extra 167,728 people employed making it 757,228 in 1990 accounting for 3.31% of the total employment. However in the next 7years the employment rate stayed low with a little over 36,975 people employed over 7years, but as a result of the France 98 Fifa world cup 143,313 new jobs were created in 1998. By the New millennium 2000 the employment in all Tourism related Sectors accounted for 3.55% of the Total employment with 864,144 people employed & it stayed relatively high through the decade with the creation of new Hotels, Restaurant & resorts 1,146,345 people employed by 2010. See figure 3.1

fig 3.1

Employment in all Tourism related sectors fromm 1980-2010

Gross Value added(GVA) from all Tourism related sectors in 1980 was 6,141,910,000Euros accounting for 1.54% of the total Gross Value Added, and continued to rise significantly by the end of the decade in 1990 it accounted for approximately 2.12% of the Total Gross Value added with well over 19,558,970,000Euros. However within the next 7 years the Tourism Industry didn’t meet the forecast by the WTO the numbers stagnated & stayed between a certain range accounting for 2.19% of the total GVA by 1997, However by 1998 as a result of the France 98 Fifa World cup the GVA in all tourism Related Sectors went up significantly accounting for 2.25% of the Total GVA with 26,499,190,000Euros & it stayed high by the year 2000 the GVA accounted for 2.34% of the total GVA with 30,229,000,000Euros,(2007-2009)it Stagnated a little During the recession ,but as mentioned earlier France got back on its feet quick & the GVA for all tourism related sectors by 2010(OECD stats shows) accounted for 2.56% of the Total GVA. See figure 3.2

fig.3.2

GVA in all Tourism Related Sectors From 1980-2010.

Conclusion.

The French Agricultural,Energy & Tourism Industries are very Dominant in their Respective markets and play very pivotal roles in the French Economy. Since the 1980’s France has been know in the EU and around the world for it’s Agricultural Products & Exports,it’s Nuclear Energy & as the number 1 Tourist destination in the world.