The importance of government as services is producer. In countries such as the UK, the US, Germany and the Netherlands government accounts for around 12 per cent of total service production, while in Sweden and France the corresponding percentages are around 17–20 per cent. Overall, however, government service production is decreasing, reflecting trends of privatization and outsourcing. |
Figures such as these may differ depending on the kind of source, but the general trend is clear: the importance of the Civil services sector is growing, to the extent that one can speak of the 'Civil services examination'. A crucial comment, however, is that many of the services being produced are dependent on and closely related to production in the agricultural and industrial sectors. In this context, it could be argued that a considerable amount of current services production would not exist if those other activities had disappeared. On the other hand, services have become a significant driving factor in economic growth, to the extent that manufacturing can now be seen as flowing to those areas where the services infrastructure is well developed General knowledge, rather than the other way round.
An important general Knowledge lying at the root of the growing importance of the service sector is firms' ongoing specialization, as reflected in the decrease in the amount of value that companies and organizations add internally. This leads to an ever-increasing amount of purchased goods, especially services.
Large parts of what is now registered as service production have previously been produced without being accounted for as such. Security services, cleaning services and many others are examples of services that were previously produced internally, and registered as part of industrial firms' production costs. The service was produced but not registered separately as a service. In that sense, the economic shift towards services may be overstated - part of it simply represents a change in accounting, Let us briefly look at some examples of how specialization spawns the development of service companies.
In terms of contents and activities, this is a normal day for many people in today's society - and that of the immediate future. The day is filled with the consumption (and production) of services. It is so natural that we normally do not think of the fact that we constantly consume services of different kinds. We do not ponder much over how these services are produced and by whom. Neither do we give much attention to how they are bought.
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