Dependance On Primary Sector

There are many factors that add up to an economic crisis. One of these factors is the dependence on the primary sector. Third world countries like Pakistan and Sri Lanka are prime examples. Their economies are agricultural based. Even though it might be more feasible for them to continue to operate in this sector, it has many disadvantages which can lead to deterrence in economy’s welfare when facing a period of recession, further degrading the standard of life of the general public.

In current times, the world is under a severe period of recession and has been witness to a rising trend in inflation. In a country like Pakistan, everything is becoming more expensive as time progresses. In the primary sector, harvesting of crops and other raw materials have seen an increase in price. This includes fertilizers and seeds. As the cost of growing crops increases, the common farmer would, as a result, increase the price at which he sells these crops to wholesalers. This would explain why even basic necessities like food and clothing is getting more expensive. Due to the recession in the country, wages of people have not increased. People who do not make a steady income are faced with heavy borrowing in order to fulfill basic needs.

Shifting from the primary sector to the industrial sector requires a lot of progress and economic growth. Due to the recession and rising inflation, the government itself is under a lot of stress. Continued borrowing from developed countries in order to stabilize the economy only increases foreign debt. In order to increase revenue, the government increases taxes further worsening the position of the common man. People living in rural areas can not even afford to educate their children due to the high cost of living. The government lacking money cannot afford to build proper schools or hospitals, which as a result further degrades the living standards of people because of high illiteracy and death rates.

Dependence on the primary sector, in today’s world, does not satisfy the need of a country in terms of revenue and the welfare of the people living in it. Massive borrowing and constant inflation are only one of the few after effects of it.