Economic

Organization
Module 10:
At the end of this
module I can
Analyze economic organization and its
impact on the lives of people in the
society

Differentiate the types of economic

subsistence
The societal world has been through several changes,
advancements, and innovation since the dawn of the Neolithic
stage. Consequently, these changes have greatly affected the
social, cultural, political, and most especially economic aspect of
societies. Due to various and numerous technological
improvements, the whole economic processes have also been
developed. Form (2014) argued that the shift in the technological
capacity of the societies has allowed for “the formation and
extension of markets, modifications of property relations (such as
the change of from feudal lord-peasant relations to contractual
proprietor-tenant relations), and changes in the organization of
labor (such as the change from independent craftsmen to
factories).”
EVOLUTION OF ECONOMY
Economic Process
Reciprocity
In most situations, when you give something
away, you expect something in return. This kind of
situation reflects the concept of reciprocity. This
economic process entails the exchange of
commodities between parties, often on an individual
basis. It is also a binding method which holds people,
peers, and families together (Anthropology 2008). In
reciprocity, there are no goods and services lost
because it is a particular process wherein you just
receive and return the favor. Barter is the most
common form of reciprocity, as this process includes
the exchanges if commodities between individuals.
According to Marshall Sahlins (1965), there are
three major types of reciprocity. See table 10.1.
 Transfers
When resources from one individual or organization are
given to one another with no expectation of return, an economic
transfer is in place. The type of economic process allows for the
redistribution of resources within an economic system.
Some examples of this process include the transfer of
financial aids, government subsidies, and social security. Due to
the nature of these transfers, individuals and organization tends to
be reliant on these to mitigate their economic problems. To say
that these economic transactions have no immediate bearing on
the participating individuals and organizations is inaccurate. In
fact, some critics claim that such transfer have underlying
agenda, such as when foreign government transfer resources to
financially struggling organization in the form of loans, grants, and
subsidies to promote their organizational policies.
 Redistribution
Economic redistribution occurs
when the resources of one, several
individuals, or groups are collected and
distributed proportionally or equally to
participating members. Two of the best
examples of redistribution are
progressive income tax systems and
charity donations.
 The marriage tradition of
patrilineal societies known as
bride price, or the transferring of
wealth from the man’s family to
the woman’s family as a form of
gift prior to the wedding is an
example of how redistribution
occurs on a micro level. Fig 10.2
shows the type of gifts a bride in
Vanuata usually receives as a gift
from her groom’s family.
 On a community level, an example of redistribution is the
native American practice of potlatch, which is composed of
feasting, speeches, and a gift giving to improve the public
figure of the giver. In these events, the giver provides a feast
wherein his social status is affirmed by the amount of gifts
the participant would give him.
 Market Transactions
Market is referred to as the exchange
of goods and services that involves buying
and selling processes. However, it is a not a
simple process of exchanging materials,
goods, and services. It involves several
elements and transactions. Market is about
making money, capital income, and growth.
(Women and Economy, 2011).
 Human have several needs and wants that are deemed as
bases of market sellers for producing goods and services. After the
production of goods and services, everything is brought to the
market for the purpose of selling. Buyers are expected to purchase
the available market supplies (goods and services) for the purpose
of consumption and satisfying their needs. These markets
transaction will continue to happen as long as there are buyer,
sellers, supplies and demands in society.

The key element that separates market transaction from

reciprocity and redistribution is the use of standardized currency.
This means that you cannot buy a can of soda from the grocery by
giving a chicken that you raised in your backyard.
Market and State
What do you think is the relationship between market and state?
Basically, market involves all the human actions associated with
the economic aspects. On the other hand, the state serves as the
institution that protects and maintains economic balance through
its economic law and policies. Ferraro et al. (2010) argues that
“societies with self-developed market economies have to decide
as to what extent they would allows free markets or the
government to control the economy.” This relates to often
dicholomous perspective on the relation of option, the free hand
of the market, promotes an unbridled economic exchange
between people and organizations in their pursuit of profit and
surplus. The second option, heavy hand of the state, promotes
highly structured and codified economic engagement of
individuals and organizations as mandated by the state-led
procedures. In the most ideal setting the state through its
government, should work hand in hand with the economic sectors
of the society to ensure economic and even political stability
Types of Economic Subsistence
Due to varying environmental conditions and other social factors such as family
organization and gender dynamics, human societies have created numerous ways to
address their economic needs. In the 19th and early 20th centuries, anthropologists
such as Edward B. Taylor and Lewis Morgan created categorizations that were used
to classify human groups that are believed to be following a unilinear evolutionary
pattern that progresses from savagery to civilization. This theory of society has long
been debunked due to its inaccurate and racist provocations. Nevertheless, it has
paved the way for a differentiated analysis of human subsistence patterns.

Modern anthropologists subscribe to four categories of economic subsistence that

accepts the diversity if human population without giving privilege to one category
over the other. These four categories are foraging, horticulture, pastoralism, and
agriculture.
 Foraging
One of the most ancient type of subsistence pattern is
known as foraging. During ancient times, people lived
in the simplest way by being highly dependent on
their environment. Hunting for animals and gathering
wild plants are their most common activities. O’Niel
(2011) further described the group’s activities: “They
do not plant crops and only domesticated animals
that they are usually have are dogs. These useful
animals often have multiple functions for foraging
peoples. They serve as pets, hunting aids, watch-
animals, camo refuse scavengers, and even surplus
food when needed.”
Due to type of activities that they had, their form of technology is also simple-
ranging from digging sticks, to hunting spears, and to other crude forms of hunting
materials. Human power and muscles had been their sources in performing
economic roles. Most tasks and work labor were divided according to gender. There
were specific tasks, and roles that were associated with men and with women.
Hunting wild animals were for men, and gathering plants were for women. In terms
of settlement, the foragers were considered to be the early nomads. Nomads are
individuals or group of people who stay in a place for a short period of time. These
people usually built temporarly dwellings in a certain area for the purpose of
survival. The length of their stay in a specific area is highly dependent on the
availability of resources, such as foods and water, in that area. Climate variability
affected the length of stay of nomads in the area as they adapted to the resource
limitation per season in a region. This implies a more consistent movement
dependent on the type of season.
 In terms of settlement, the foragers were considered to be the early
nomads. Nomads are individuals or group of people who stay in a place for a
short period of time. These people usually built temporary dwellings in a certain
area for the purpose of survival . The length if their stay in a specific area are
highly dependent of the availability of resources, such as food and water, in that
area. Climate variability affected the length of stay of nomads in the area as they
adapted to their resource limitation per season in a region. This implies
consistent movement dependent on type of season.
 PASTORAL
Pastoralism is a subsistence pattern that is primarily focused on
“tending herds of large animals” (O’ Neil, 2011). Various kind of animals available
in their environment became the biggest source of survival of the pastoralist.
These animals eat only plants and grass, so they domesticated herbivores. The
most common animals tended by pastoralist societies are sheep, deer, goat,
cattle, and horse.

Men appear to be more aggressive toward outsiders, but they are

very much cooperative within the group they belong to. These men
often involved in making fast economic decisions, as the survival of the group is
often reliant on external forces such as drought, weather variability, and threat
of other predators.
 There are two classifications of pastoralism: pastoral nomads and
transhumance pastoralists. Pastoral nomads have similarities of with the way of
life of the foragers because of the temporary settlements. However, the only
difference is that early foragers do not focus on tending animals. Therefore, their
search for food and water is for their own personal consumption. On the other
hand, pastoral nomads transfer from one place to another in search of food and
resources that are not just limited for their consumption alone nut also for the
consumption of their animals. Most destinations of pastoral nomads are highly
dependent on the needs of their animals.
O’Neil (2011) described transhumance pastoralists as “following a
cyclical pattern of migration that usually take them to cool highland valleys in
the summer and warmer lowland valleys in the winter. This is seasonal migration
between the same two locations in which they have regular encampments or
stable villages often with permanent houses.
 HORTICULTURE
Horticulture is a combination of small scale farming and domesticating
animals for the purpose of food and prestige. Unlike foraging, this subsistence
pattern allows for the accumulation of food products because horticulture
societies participate in a small surplus or selling in exchange of goods they
cannot produce.

One of the primary characteristics of horticultural societies is their

shifting planting process that entails movement form one cultivated land to
another. Swidden farming is one key example of this pattern, as swiddeners
prepare and plant in one land area for a long period of time and move to
another area after the product is harvested from the first area. In the Philippines
, this takes the form of “kaingin”, a form of slash-and-burn planting method.
 Horticultural societies follow a certain pattern that can shift rapidly,
depending on their situations and conditions. It also has several economic
advantages because of its flexibility and ability to adjust and resolve
circumstances. For instance, when farming lands are depleted of soil,
horticulturists move to another available field using their strategies and
technique.
AGRICULTURE
Most large-scale societies are dependent on agriculture as their primary
mode of economic subsistence. As early as 10,000 years ago, farming methods
and domestication of animals were developed intensively to meet the needs of
population. Improved water managements pave the way for the spread of
agriculture among different societies. The number of large animals for pulling
plow rapidly increased for better soil and agricultural production. This has been
the reason that farming is one of the major sources of living and income in early
societies. Most families are farmers who work together in agricultural lands.
During ancient times, agriculture was highly practiced in the ancient civilization
in Egypt, Mesopotamia (now Iraq and eastern Syria), India, Pakistan, North China,
Mesoamerica, and Western South America (Ferraro and Andretta, 2010). As
farming continued to flourish to the different regions all over the world,
agricultural system changed constantly, especially when agricultural
technologies and inventions were discovered and introduced to different
societies.
Societies viewed farming and agriculture as permanent and sustainable
subsistence pattern for their survival. As a result, permanent settlements in various
areas increased and more buildings and structures were built. Market selling and
trading also started, which brought about an increase in population overtime.
Agriculture resulted in the division of social classes, wherein the farmers who were
working class decreased their power over their goods due to the coming of the
leaders or the upper classes who controlled agricultural services and production.
ESSENTIAL LEARNING
Economic systems and processes are interrelated
with the technology and environment of humans. Due
to the varying environmental conditions that human
societies are experiencing, the economic practices
and behavior that they have are also different. Unlike
earlier perceptions that there is a best type of
economic subsistence pattern, more economist and
anthropologists argue that the variance in subsistence
patterns are mere representation of human adaption
to their environment . This implies that the subsistence
pattern that was beneficia for one society may not be
as workable in another.
Presented by: Aian and Pablo

Thank
you very
much!