What are quaternary activities? Advantages and Disadvantages

A major aspect that determines the economy of any country is its industry or the sectors into which the country is divided. This is because the industry comprises the systematic production of services and goods for sale. The Indian Industry is divided into three major sectors- primary, secondary, and tertiary. Here we will talk about the subdivision of the tertiary sector, i.e., quaternary activities. The activities which are knowledge-oriented are called quaternary activities. These mainly include the collection, production, and circulation of information. The quaternary activities may be seen as advanced services involving specialised technical skills and knowledge. 

What are the sectors of the economy?

Economic activities are human activities that generate some revenue or income. These can be broadly grouped into primary, secondary, and tertiary activities. The tertiary sector is further divided into quinary and quaternary activities. The services which require specialised knowledge or skills under the tertiary sector are called quaternary activities. 

What are quaternary activities?

The quaternary services have a different classification under the tertiary sector because these include specialised activities in the ‘knowledge sector’. This sector has been very high in growth, from software statisticians and developers to mutual fund managers and tax consultants. These activities can also be outsourced like many other tertiary activities. They are not affected by the environment, tied to resources, or necessarily localised by the market. 

Examples of quaternary activities are-  

1. Accounting and brokerage firms
2. Personnel working in office buildings
3. Hospitals and doctors’ offices
4. Theatres
5. Elementary schools and university classrooms

Difference between tertiary and quaternary sectors:

Tertiary activities include transport services, banks, lawyers, doctors, teachers, etc. They provide services to the people. This sector includes both the production and the exchange of services and goods.

The quaternary sector involves knowledge-oriented activities such as administrative competence, technical skills, research and development, and practising specialised knowledge. 

The quaternary and tertiary sectors have replaced secondary and primary employment in many countries. These sectors have become the basis for economic growth in modern times. The reason behind the upcoming growth of these sectors is that many developed economies have experienced a high demand for information-based services. 

Although both the sectors provide services, the main difference between the tertiary and quaternary sectors is that the services provided in the quaternary sector are intellectual rather than repetitive activities. This difference gives a notion of what the sector is about. However, this difference is difficult to establish in the real world. 

Characteristics of the quaternary sector:

• Since quaternary services involve highly-skilled people, these are led by big companies and developed countries
• This sector is highly capital and research-intensive.
• The quaternary sector focuses on building itself more and collectively works with other sectors of the economy and enhances their position in the economy. 
• The quaternary sector is believed to disturb the working of many labour markets.

Examples of quaternary industry or sector:

Financial planning, information generation, consultancy, information technologies, designing, and research and development are some industries in the quaternary sector. Other activities that belong to this sector, according to some interpretations, are- government, culture, media, and entertainment industry. 

Some examples of quaternary services or products are- autonomous vehicles, artificial intelligence, 3D printing, big data, the internet of things, quantum computing, robotics, and nanotechnology. 

People involved in quaternary activities:

In the modern economy, the analysis and dissemination of information are important enough to demand a different sector and differently skilled people. The people involved in the quaternary activities are often referred to as the “GOLD COLLARS”. This is so because this sector includes highly paid and skilled people in various activities. 

These activities consist of-

• People in information-based services such as information-generation and information-sharing
• People in information technology such as research and development and media
• People in knowledge-based services such as financial planning, designing, consultation, education, blogging, etc. 

Also, some other definitions of quaternary activities mention them as “pure services”. So they also include the entertainment sector, for example, to describe government, culture, and media. 

Advantages of the quaternary sector:

• The quaternary sector’s presence helps the country develop new ways of supporting the other sectors. 

• The major role of the quaternary sector in any economy is to enhance existing-knowledge systems in the information technology surrounding. 

• Producing and providing quaternary services is not that simple. It involves a specialised space in which entrepreneurial thinking is a must.

• The skills of the people employed in this sector advance with time. They are exposed to new things and learn regularly. 

Disadvantages of the quaternary sector:

• Till now, we have seen mentioned so many examples of quaternary activities and have understood that they require a highly skilled workforce. This is the major drawback of this sector, limiting employment opportunities here. 

• Since the quaternary sector involves high-paying jobs, a significant investment is to be made by the people or organisations hiring highly-skilled people.

Conclusion:

With vast diversity and very different people, a country like India depends on all three sectors vitally. The different industries in India are primary, secondary, and tertiary. The contribution of all three sectors to the nation’s gross domestic product (GDP) is significant, and the role played by each one of them is important for the economy. The quaternary activities have been allotted a different division under the tertiary sector because it includes those specialised activities under the ‘knowledge sector’ that differentiates it from the quinary activities. The people engaged in this sector are usually referred to as ‘gold collars’ because of their special and highly paid skills.