Types of economy
In cultural terms, there are two fundamental types of economic systems, those in which
a family or
individual literally "makes" its own living, and those in which it "earns" its living.
The first is classed
as a subsistence economy, the second an exchange economy.
All human economic life is always in some degree social. That is, at least one social
agency is
concerned in the economic life of any individual. The social unit of economic organization is not
necessarily coterminous with other social groups, and that affiliations of varying scope are formed
for different purposes and by different mechanisms. Among many peoples, the ceremonial and
political activity of a community is the affair of a large part of the population, but economic
processes are carried on in parallel but separate small household units. Bearing this in mind, we
may say that in a subsistence economy, a single social unit performs the economic functions
relating to production and distribution as well as consumption; and that in an exchange economy,
more than one social unit is engaged in these functions as they concern any single individual.
Within the subsistence system, the small family unit is usually organized as both the unit of
production and the unit of consumption, and itself effects the distribution of goods and services
among its members. The family unit acts as both household and firm, and therefore also as the
economy. All or practically all of the goods produced by its members are consumed by them, and
little goes to outsiders; similarly, all of the goods consumed, or almost all of them, are produced
within the unit. The individual consumer has usually had some part in the actual production of the
goods he uses.
Under an exchange economy goods and services are transferred from one social group
to another
by one or more of several mechanisms embodied in the larger social unit bound together by the
economy, which mediates among these lesser groups. The producers of goods and services
exchange them, directly or through intermediaries, with their consumers. They also receive goods
for consumption from other producers.
Primitive social and economic systems
There are great varieties of primitive cultures, but they fall into four basic types.
The most
fundamental division is between those which produce no surplus or a very small surplus, living from
hand to mouth— a bare subsistence economy—and those with a reasonable or large
surplus. Only
with the latter shall we find permanent settlement and complex social organization. Surplus
determines many things:
1. The density of
population.
2. The degree of
specialization.
3. The forms of
ownership, exchange, and inheritance.
4. The amount of
leisure available for arts, crafts, and ceremonies.
Simple Food-gathering Systems.
We find this level of attainment among the Australians, the Eskimos, the South African
Bushmen,
the Shoshones, the African Pygmies, the Veddas of Ceylon, and some South American Indians.
There is no future for any of these groups—they must either perish or be absorbed
into higher forms
of civilization. These groups are of special interest because they give some indication of the mode
of life that our most primitive ancestors lived.
Some of these groups fish, some gather wild plants; all engage in hunting. Some cattle-herding
tribes which practise no agriculture do not rise above a subsistence economy.
Such communities stake out and roam over strategic fishing areas, hunting districts.and
wild-plant
collecting sites. These territories are not owned by individuals, families, or tribes, but the particular
group knows them, exploits them, and moves over them.
First we have a certain division of labour as between men and women. Among the Australians
the
women dig for roots and witchetty grubs, the men hunt kangaroos. Then we find work parties. A
squad or group of men sets off to hunt or fish.
Population groups, of course, are small, the self-sufficient unit consisting of 40-80
persons. The
entire community makes seasonal moves for the sake of food.
Distribution is generally shared. There are no significant surplus products and no
inequalities in
ownership of wealth.
More advanced hunting and good-gathering systems
These were probably widespread in prehistoric times, and were most recently found
in the lower
coastal river and tidewater villages of Northern native Americans —from northwestern
California to
Alaska.
There is now a surplus and the headman or chief organizes the tribal activities and
work parties and
receives a larger share of the product. Class distinctions now emerge between the rich and the
poor. Once we reach this level, we find that there are even slaves who do the menial work, such as
carvers, canoe- makers, and basket-makers. There is also some trading.
Populations are much larger. Self-sufficient village communities contain about 50
persons, and
market villages of many hundreds appear.
Predatory activities now appear. Distant villages are raided for slaves and booty.
This is possible
once there is a surplus for which to fight.
At this stage the warrior caste emerges—the hunter-fighters, who tend
to despise routine labour in
favour of exploits which testify to personal prowess. Scalps, trophies, and booty are evidence of
this and are more worthy than goods obtained by labour.
There may even come a time when indignity is imputed to hard work, which therefore
becomes
irksome. A radical distinction develops between work, which is ignoble, and non-productive
activities such as raiding and fighting.
In so far as slaves or women can be compelled to do the work, the warriors can free
themselves
from productive labour to employ themselves in more dignified and meritorious ways.
In some Indian communities, status and importance were determined by the amount of
conspicuous waste which chiefs and aspirants to social honour could demonstrate. This is seen
today among the Kwakiutl Indians of British Columbia. The potlatch is a great and expensive feast
requiring the accumulation of considerable wealth and bringing great glory to those who give it. The
aim is rivalry, a contest to see who can give the biggest feast. Honour comes from giving away,
even from destroying wealth. The gifts include paddles, mats, dishes, canoes, blankets, and
engraved copper shields. During the feast thousands of valuable blankets may be burned, canoes
broken, and copper shields smashed.
Rivalry between chiefs and clans finds its strongest expression in the destruction
of property. A
chief will burn blankets or break a copper shield, thus indicating his disregard of the amount of
property destroyed and showing that his mind is stronger, his power greater, than that of his rival.
If
the latter is not able to destroy an equal amount of property without much delay, his name is
'broken'. He is vanquished by his rival and his influence with his tribe is lost, while the name of
the
other chief gains correspondingly in renown.
Agriculture with a small surplus
This form of economy is found everywhere in the Pacific Islands, in the north-eastern
portions of
North America, along the upper Missouri, in Arizona and New Mexico, and in Brazil. It is also found
in Africa. Probably a few million persons all over the world lived in such economic systems 300
years ago.
Population groups are larger than such groups would be in advanced food-gathering
societies.
Villages contain hundreds of persons. The basic type of agriculture is the garden, which can be run
by a family, with communal help to clear the ground to get it started and for harvests. Work parties
fish, hunt, or collect wild plants.
The gardens are worked, if not owned, by families. But control and assignment remains
with the
community. Produce is kept by individual producers and shared only in time of community need.
There is now enough surplus to permit a certain amount of leisure from subsistence
work;
individuals are released for specialized work or crafts such as pottery, weaving, carving, or for
ceremonial activities. Surplus may also be given away or bartered from community to community.
The existence of this surplus does not yet result in important inequalities of ownership, hereditary
nobles, or taxation.
Advanced agricultural and pastoral systems
Most of the living peoples studied by anthropologists organize their production by
these methods.
The villages are not only more populated but are grouped in larger areas, welded together
by trade
and for defence. Hence the appearance of the tribe—a cluster of economically interdependent
village communities sharing a common territory, language, and culture. Specialization may now
exist between villages. Intercommunity barter becomes important. This is not only agricultural but
pastoral—that is to say, cattle- and sheep- owning communities now appear and, in the north,
reindeer- owning groups. Strategic resources are privately owned and may include land, herds, and
slaves. Production is by individuals, and sometimes by slaves owned by the rich. There is definite
production for market needs, and villages begin to specialize.
Ecumenes
Ecumene is the term used to describe a geographically distinct community
where all families are
tied into the utilisation of a single natural resource. A coastal fishing community is a good example
where there is an economic web of interdependency of families from shipbuilding and catching,
through marketing, transporting, to local retailing of specialised gear and clothing. At the extreme,
They are closed and largely autonomous communities based on kinship, common language and
tradition that lie within a sphere claimed by national state
Countryfolk
Rural communities were noted for their interdependence of farmer, cottage and craftsman.
The
significance of mutual aid, the ties of kinship, neighbourhood work groups, religion and language
gave small communities a strong sense of cohesion. Families developed a persistent attitude of
being as self- sufficient as possible, producing everything needed at home. The compulsion to go to
market was in order to obtain money for rent, tithes and labourer's wages. Produce obtained from
thelocality such as grain or skins were processed locally and often the product of craftsmen such
as tanners or weavers could be used by other local craftsmen. Prices were adjusted to permit a
reasonable living for the craftsmen while taking into account the economic problems of his
customer. |
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