Notes on Services and Settlements in Human Geography

Understanding Services and Settlements in Human Geography

Definitions and Key Concepts

  • Service: Any activity that fulfills a human want or need and returns money to those who provide it.
    • Service Sector: Referred to as the tertiary sector of the economy.
  • Types of Services:
    1. Consumer Services: Services provided to individual buyers.
    • Make up approximately 50% of all jobs in the U.S.
    • Main types include retail, education, health care, and leisure.
    • Most rapid growth areas: health care, education, entertainment, and recreation (linked to demographic and economic changes such as an aging population).
    1. Business Services: Services provided to businesses.
    • Account for about 25% of all jobs in the U.S.
    • Main types include professional, financial, informational, and transportation services.
    • Rapid growth in professional services, slower in finance and transportation due to efficiency improvements.
    1. Public Services: Services provided by the government.
    • Comprises about 8% of all jobs.
    • Jobs are distributed across levels of government: federal, state, and local.

Consumer Services and Central Place Theory

  • Settlement Definition: A permanent collection of buildings where people reside.
  • Service Location: Closely related to settlements since they are areas where customers are clustered.
  • Profitability in Consumer Services: Proximity to market is crucial.
    • Central Place Theory (Walter Christaller, 1930s): Explains profitable locations for services.
      • Central Place: A market center for the exchange of goods and services.
      • Market Area (or hinterland): Surrounds a service, attracting customers.
    • Service Range: Maximum distance customers will travel for a service.
      • Relationship between range and level of service: Short trips for everyday items, longer for specialized services.
    • Service Threshold: Minimum number of customers needed to support a service.
    • Market Area Geometry: Hexagons are used for market areas for efficiency in distribution.

Market Area Hierarchy

  • Different levels of market area: hamlet, village, town, and city.
  • Larger settlements can provide both high-order (more specialized) and lower-order (basic) services.
  • Market Area Analysis helps businesses decide locations and services to offer.

Hierarchies of Services and the Rank-Size Rule

  • Rank-Size Rule: In a country, the nth largest settlement is 1/n the population of the largest settlement; indicates economic diversity.
    • Absence of this rule suggests a primate city hierarchy where one city dominates and requires long travel for services.
  • Periodic Markets: Individual vendors offering goods/services at specific times; common in developing countries.

Characteristics of Global Cities

  • Global City Definition: Major centers for service provision in the global economy.
    • Concentration of financial institutions, corporate headquarters, and professional services.
    • Attract a wealthy populace, leading to luxury and specialized service markets. Includes NYC, London, and Tokyo as dominant Alpha++ cities.

Business Services in LDCs

  • Specialization in offshore financial services and business process outsourcing, attracting firms due to lower costs and the ability to communicate in English.

Economic Specialization and Growth

  • Basic vs. Nonbasic Businesses:
    • Basic: Exports outside the settlement (economic base).
    • Nonbasic: Services primarily for local residents.
  • Talented Individuals: Cities aim to attract them through cultural amenities and quality of life factors rather than economic incentives alone.

Urbanization Trends

  • Urbanization: Increase in the population living in urban settlements (currently 55% globally).
  • Migration and industrialization have driven urban growth, with the highest urbanization found in Latin America.
  • Megacities: Urban areas with populations over 10 million (37 globally); the largest is currently Tokyo, expected to be surpassed by Jakarta by 2030.

Urban Structures and Models

  • Modern Urban Structures: Central Business Districts (CBD) dominate with high-value services, often leading to urban decay in areas outside the CBD and prompting urban renewal and gentrification efforts.