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 the locality 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.