key term - Subsistence economy

Definition

A subsistence economy is an economic system where communities primarily produce enough goods and services to meet their own basic needs, rather than for trade or profit. This type of economy often relies on agriculture, hunting, and gathering, with families or small groups managing resources sustainably to ensure survival. The focus is on self-sufficiency and local consumption rather than engaging in extensive trade networks or market-oriented practices.

5 Must Know Facts For Your Next Test

1. Subsistence economies are often found in rural areas where people depend on local resources for survival, leading to a close-knit community structure.
2. These economies can be more resilient to global economic fluctuations since they focus on local production and consumption.
3. In subsistence economies, agricultural practices are typically diverse and based on crop rotation, permaculture, or polyculture to maintain soil health.
4. The social organization within subsistence economies is usually communal, with shared responsibilities for food production and distribution among members.
5. Subsistence economies have been increasingly threatened by globalization, industrialization, and climate change, which can disrupt traditional ways of life.

Review Questions

• How does a subsistence economy influence the social structure within communities?
  • In a subsistence economy, the social structure tends to be communal and collaborative, as individuals rely on one another for support in food production and resource management. This interdependence fosters strong community bonds and collective responsibility, where tasks such as farming or hunting are often shared among members. As a result, social ties are reinforced through cooperative efforts, creating a sense of belonging and mutual aid that is essential for survival in these economies.
• Discuss the impact of traditional ecological knowledge on subsistence economies.
  • Traditional ecological knowledge plays a vital role in subsistence economies by guiding sustainable practices based on centuries of experience with local ecosystems. This knowledge helps communities make informed decisions about resource use, including what crops to plant or when to hunt certain animals. By integrating this wisdom into their daily lives, individuals in subsistence economies can ensure the sustainability of their resources while maintaining cultural practices that are deeply connected to their environment.
• Evaluate the challenges facing subsistence economies in the context of modern globalization.
  • Subsistence economies face significant challenges due to modern globalization, which often prioritizes market-driven approaches over local needs. As industrial agriculture expands and global trade networks become more dominant, traditional methods of production can be undermined or replaced by unsustainable practices. Additionally, climate change poses threats to the natural resources that subsistence communities depend upon, disrupting food systems and leading to resource scarcity. These factors force many subsistence communities to adapt or risk losing their way of life entirely.

Related terms

Barter system: A method of exchange where goods and services are traded directly for other goods and services without using money.

Traditional ecological knowledge: The understanding and skills developed by indigenous peoples over generations regarding the relationships between living beings and their environment.

Sustainable practices: Methods that promote the use of resources in a way that meets current needs without compromising the ability of future generations to meet their own needs.