The document discusses different types of economies including subsistence, raw material exporting, industrializing, and industrial economies. It analyzes each economy type and discusses implications for income distribution. For subsistence economies like Gambia, income distribution is relatively equal due to reliance on own agriculture, though external shocks can increase disparities. Gambia is not classified as a raw material exporter or industrial economy. It has made efforts towards industrialization but remains primarily agrarian and service-based.

1. MARKETING
PRESENTATION
CONTENTS
SUBSISTANCE ECONOMICS
RAW MATERIALS EXPORTING ECONOMICS
INDUSTRIALISING ECONOMICS
INDUSTRIAL ECONOMICS

2. MARKETING
PRESENTATION
GROUP 2
BINTA SAHO 22224066
BABOUCARR SARR 22224042
AUGUSTUS JOHN SANYANG 22314067
BINTOU GASSAMA 22224379
CHERNO M SALLAH 22314121
EBRIMA BAYO

3. SUBSISTANCY ECONOMICS
Subsistence economies are characterized by a focus on basic survival and self-
sufficiency. In these economies, the majority of the population engages in
agricultural or primary activities to meet their own needs. Surplus production
and trade beyond local markets are limited. Income distribution tends to be
relatively equal in subsistence economies due to the reliance on own
agricultural production for sustenance (Hunt, 2008).
In the case of the Gambia, it is primarily an agrarian country with a significant
rural population engaged in subsistence agriculture (World Bank, 2021). The
majority of the population relies on small-scale farming for their own
consumption and local markets. This aligns with the characteristics of a
subsistence economy.
Regarding income distribution, the reliance on subsistence agriculture can
have both positive and negative effects. On the positive side, it can contribute
to relatively equal income distribution as most people are engaged in
agricultural activities and directly benefit from their own production. This can
mitigate income inequalities to some extent.
However, variations in agricultural productivity, access to resources, and
external factors such as climate change and market fluctuations can affect
income distribution within the population. Unequal access to land, capital,
and technology can lead to disparities in productivity and income levels
among farmers. External shocks such as droughts, floods, or pest outbreaks
can disproportionately impact certain regions or communities, further
affecting income distribution (Datt & Ravallion, 1998).

4. RAW MATERIALS EXPERTING ECONMICS
Raw material exporting economies rely heavily on the
extraction and exportation of natural resources, such as
minerals, oil, or agricultural products. These economies
often face challenges due to their dependence on global
commodity prices and fluctuations in market demand.
Income distribution in raw material exporting economies
can be influenced by various factors, including resource
ownership, government policies, and the effectiveness of
revenue distribution mechanisms.
The Gambia is not typically classified as a raw material
exporting economy. It does not possess significant natural
resource reserves, such as large-scale mineral deposits or
extensive oil reserves (World Bank, 2021). The country's
economy is primarily based on agriculture and services,
with limited exports of agricultural products such as
peanuts, fish, and horticultural products (World Bank,
2021).

5. Implications for income distribution:
Since the Gambia is not classified as a raw material
exporting economy, the implications for income
distribution within this specific structure are not
directly applicable. However, it is worth considering the
broader impact of raw material exports on income
distribution in other countries.
1. Income Disparities: Raw material exports can
generate significant revenue, but the benefits may not
be equally distributed among the population. Income
disparities can arise due to limited job opportunities in
the resource sector, unequal access to resource wealth,
and potential concentration of wealth among small elite
(Lederman & Maloney, 2012).
2. Vulnerability to Price Volatility: Raw material
exporting economies are highly dependent on global
commodity prices, which can be volatile. Fluctuations in
prices can impact government revenue, investment
levels, and economic stability, which in turn can affect
income distribution (Gylfason, 2001).

6. INDUSTRIALISING ECONMICS
Industrializing economies are in the process of transitioning
from primarily agrarian-based economies to those that
increasingly focus on industrial production and
manufacturing. These economies typically experience rapid
urbanization, growth in manufacturing sectors, and
adoption of modern technologies. The transition to
industrialization involves structural changes in the economy,
such as a shift from traditional agriculture to more capital-
intensive industries.
Classification of the Gambia:
The Gambia is still considered a developing country with
limited industrial development. While efforts have been
made to promote industrialization and economic
diversification, the industrial sector in the Gambia remains
relatively small and undeveloped (World Bank, 2021). Thus,
it is not primarily classified as an industrializing economy.

7. Implications for income distribution:
The process of industrialization can have implications for
income distribution within the population of an
industrializing economy:
1. Employment Opportunities: Industrialization can create
new job opportunities, particularly in the manufacturing
and industrial sectors. This can potentially contribute to
income growth and poverty reduction by providing more
formal employment and higher wages (Nayyar, 2006).
2. Structural Changes: The shift from agriculture to industry
can lead to structural changes in the economy and
employment patterns. This may affect income distribution,
as individuals with skills and education suited for the new
industries may benefit more, while those with limited skills
or in declining sectors may face challenges (Nayyar, 2006).

8. 3. Urban-Rural Divide: Industrialization often leads to
urbanization as industrial centers concentrate in specific
regions. This can create an urban-rural divide in income
distribution, with urban areas benefiting from industrial
employment opportunities and higher wages, while rural
areas may have limited access to such opportunities (Nayyar,
2006).

9. INDUSTRIAL ECONOMICS
Industrial economies are characterized by a mature and
diversified industrial sector, with a substantial portion of the
population employed in manufacturing and services. These
economies have advanced infrastructure, technological
capabilities, and often export a wide range of manufactured
goods. They experience higher levels of industrialization and
economic development compared to industrializing
economies

10. Classification of the Gambia:
The Gambia is not typically classified as an industrial
economy. While it may have some limited industrial
activities, the manufacturing sector in the Gambia is
relatively small and undeveloped (World Bank, 2021). The
economy of the Gambia is primarily based on agriculture
and services, with limited industrialization and a lower
contribution of manufacturing to the overall GDP.
1. Income Disparities: Industrial economies often have
higher income disparities compared to subsistence or
agrarian economies. Wage differentials, ownership of capital,
and access to opportunities for economic advancement can
contribute to income inequality (Milanovic, 2016).

11. 2. Skill Premium: In industrial economies, there is typically a
higher demand for skilled labour due to the technological
nature of industrial production. This can lead to a "skill
premium" where individuals with higher levels of education
and technical skills tend to earn higher wages, while those
with lower skills face limited employment prospects and
lower incomes (Milanovic, 2016).
3. Urban-Rural Divide: Industrialization often leads to
urbanization as industrial centres concentrate in specific
regions. This can create an urban-rural divide in income
distribution, with urban areas benefiting from industrial
employment opportunities and higher wages, while rural
areas may have limited access to such opportunities (Nayyar,
2006).