SUBSISTENCE ECONOMY: CHARACTERISTICS, ADVANTAGES AND EXAMPLES - CULTURE VOCABULARY - 2024

The subsistence economy is one that is applied to self-consumption societies and in which everything produced is consumed by the producing society itself. It is an economy that combines natural resources and human labor to acquire, produce and distribute subsistence products to a town or community.

This type of economy is usually appreciated in those societies or regions where there are no high economic indices, or in those cultures that develop apart from other more technologically and industrially advanced societies.

The subsistence economy is usually based on agriculture and livestock. Source: pixabay.com

The production that takes place within the community is just what is necessary for the inhabitants of that particular society to survive, and the goods that are consumed are primarily those that the inhabitants themselves produce.

The subsistence economy is usually found in areas where both the climate and the terrain are suitable for livestock and agriculture, since these two activities are the main ones within this economic system.

In this type of economy, there is not a very complex commercial network, nor are there large productions. Usually, the surplus is used as an instrument of barter with other regions or is only traded locally.

characteristics

Self-sufficient

These are varied production systems through which a society can subsist without including other industrial elements. Only with their own production are they able to supply themselves and thus satisfy their own needs.

Similarly, there is no intention of producing on a large scale to distribute to other communities, so the ultimate goal is self-consumption.

This implies that the societies that practice this economy are less dependent on industries and their variations, but at the same time they depend to a great extent on the climatic characteristics of the area in which they live.

Common grounds

The fundamental objective of the subsistence economy is to take advantage of the lands collectively, considering them as a whole.

Given that the final objective is to supply the same population, each piece of land can become an attractive economic reserve that allows the production of what the inhabitants need to develop their lives within the community.

Organized communities

Each member of the community carries out a task that makes up the entire process. As it is a system that seeks self-sufficiency, internal organization is a priority to generate efficient processes and obtain the necessary products for subsistence.

Traditional practices

In this type of economy, there is not much space for technological innovation, since the tasks that allow the production of those elements that will favor the subsistence of the members of the community have priority.

Its main economic sector is the primary one. The agricultural and livestock sectors predominate through which the family's own food is obtained; some communities may also give high importance to the textile field.

Participation of all members

The entire society participates in the production process, taking into account the abilities and skills of each individual to take advantage of them in the best possible way.

It is well taken into account that the work of each member of the community is fundamental for the achievement of the nutritional objectives, so they all focus on fulfilling their responsibilities in order to achieve the common goal: self-sufficiency.

Advantages and disadvantages

Advantage

-The possibility of self-sufficiency allows communities to plan based on their own resources, and thus avoid depending on external elements of the industrial and economic sphere, which in some cases may be more unstable.

-Since the level of production should only meet the needs of individuals in the community, it is not necessary to make large investments in specialized industries and factories.

-It allows a more direct relationship with nature and a more harmonious link with it, avoiding deforestation or other unfavorable environmental consequences that are usually generated when resources are exploited in a more invasive way and with little regard for the environment.

-The consumers of the products, which have been harvested by themselves, have the certainty that they are not contaminated with harmful elements such as insecticides or other chemicals that are sometimes incorporated into industrialized foods: they have the possibility of consuming unprocessed foods, in a fairly pure state.

Disadvantages

-It is considered an underdeveloped economy in which in many cases a great effort must be made to be able to cover the needs of the members of the community.

-The production is based on agricultural activities and they are generally seasonal agriculture, so the crops depend on the rains and other meteorological phenomena.

-It can generate poverty, since one lives with little economic income that results in very low levels of quality of life.

-In the event of any inconvenience in the production process, a severe shortage of food can be generated that results in significant nutritional deficiencies in society.

Examples of activities in the subsistence economy

Cattle raising

Under the context of subsistence, through livestock farming communities can have access to basic necessities such as meat and milk. Since the production needs are small, it is not necessary to raise a large number of animals.

farming

Agriculture is arguably the quintessential activity of a subsistence economy. The size of the crops will depend on the number of people to be provided with food, but they tend to be small gardens.

Each orchard is specialized and it seeks to know in depth the characteristics of the available spaces, in order to cultivate in each area what is most convenient. Within a subsistence economy, correct planning is essential so that the results of the crops are as expected.

Barter

Those products that have been grown and that have generated certain surpluses are usually exchanged in neighboring communities for others that are in need.

It is important to note that production under a subsistence economy system does not seek to produce more than is fair to live on, but if more production is generated than is necessary to cover its own needs, a community can implement barter and benefit from these surpluses.

References

1. José Palanca "The Subsistence economy" in Digital Magazine LC Historia. Retrieved on March 19, 2019 from LC Historia: lacrisisdelahistoria.com
2. Archetti, E. and Stolen, K. (1975). "Family exploitation and capital accumulation in the Argentine countryside" in Open Editions Journals. Retrieved on March 19, 2019 from Open Editions Journals: journals.openedition.org
3. "Fundamentals of the economy" of the Institute of Economic Research of the National Autonomous University of Mexico. Retrieved on March 19, 2019 from the Institute of Economic Research of the National Autonomous University of Mexico: iiec.unam.mx
4. Luis Daniel Hocsman "Peasant territoriality and subsistence economy" in Dialnet. Retrieved on March 19, 2019 from Dialnet: dialnet.unirioja.es
5. "From the Subsistence Economy to the Productive Economy (Nicaragua)" in Fundación Universitaria Iberoamericana. Retrieved on March 19, 2019 from Fundación Universitaria Iberoamericana: funiber.org