CHAPTER 11 Laborte, Siegfred C. Lacuna, Dominic Eustace C.

The Economy
Economy is one of the social systems in the totality of social organization. This aspect of the social system is important to society and culture. Economic activities influence habits, skills, kno ledge, e!pectations, motivations, aspirations, and ideology. "t also affects social norms, values, and personal relationships ithin the society. #uman economic life influences culture and society.

changes in the structures, and the values and ideologies related to them. "t includes organizational problems, such as orkers+ morale, productivity, turnover rates, and absenteeism.

Structure of Economy
Economic systems move from agrarian to industrial, subsistence to mechanized, underdeveloped to develop. )$n%ustrial Economy $ This is here manufacturing, trade and commerce, and services dominate. )&echani!e% Economy , This employ mechanized po er for the production, processing, and distribution of economic goods. These activities are a comple! of factories for mass production, a net ork of transportation and communications, a chain of banks for the e!change of economic goods and services for money. )Develope% Economy $ "n this economy, there is a high degree of mechanization, industrialization, urbanization, and automation such that a high cost of living e!ists.

Sociology of the Economy

The components of the sociology of the economy are property, technology, division of labor, and organization of work. Property $ %efers to the net ork of &rights and duties of one person as against all other persons and groups ith respect to some scarce goods.' (roperty can be either private or public. )Private $ %elatively free from direct state controls and is generally transferred from the o ners to their chosen heirs. )Public $ Sub*ect to governmental restraints and is controlled by the respective subsystems of government. Technology $ consists of the kno ledge, skills, and attitudes necessary to convert available resources into ob*ects people need or ant. Division of Labor $ %epresents the differentiation of functions performed by the individual member and small groups of the society. rgani!ation of "or# $ Concerned ith the application of sociological principles to the study of economic structures,

Types of Economic Systems

There are three main types of economic systemsCapitalism' Socialism' and Communism. )Capitalism $ This focuses on the right to o n private property, to invest it as capital in productive enterprises, and to obtain profits from each investment. ,.merica, /ganda "celand, (hilippines,

)Socialism $ "t takes on measures such as public o nership of basic utilities and, in some countries, an e!tensive state control over economic planning and direction.

,0ar!ist,Leninist 1 (eople+s %epublic of China, %epublic of Cuba, Lao (eople+s Democratic %epublic, Socialist %epublic of 2ietnam )Communism $ . social, political, and economic system hereby property is publicly o ned. 3arl 0ar!, the leading theorist of communism, supported a classless society. ,China, Cuba, Laos, 4orth 3orea, 2ietnam

+n%erstan%ing Economy

the

,lobal

(unctions of the Economy

.s a social institution, the economy carries out the follo ing important functions5. (rovide physical subsistence necessary for group survival in society. 6. 7enerates social changes for the continuity of society. 8. 0aintains a balance ith the other social systems and its social subsystems in the production, process, distribution, and consumption of economic goods and service. 9. "ndicates the nature of social stratification in the society, social class, and mobility differences. 3arl 0ar! : ;. Engels, Thorstein 2eblen : <illiam =gburn aver that the economic system, especially its technology, is the generator of social change. The economy, in turn, influenced by these changes, as it makes modification in its Technology, division of Labor, organization of "or#, and Property)allocations*

7lobalization is the process by hich money, goods, information, and people move across nations at a pace and on a magnitude made possible by rapid advance in communications and travel. The overriding policy of the la that governs the overseas employment is the protection and promotion of the elfare of the overseas ;ilipino orkers. This is the fundamental policy and thrust of the Department of Labor and Employment >D=LE?.

Lan% Reform in the Philippines