A subsistence economy is a non-monetary economy which relies on natural resources to provide for basic needs, through hunting, gathering, and subsistence agriculture. "Subsistence" means supporting oneself at a minimum level; in a subsistence economy, economic surplus is minimal and only used to trade for basic goods, and there is no industrialization.
In the history of the world, before the first cities, all humans lived in a subsistence economy. As urbanization, civilization, and division of labor spread, various societies moved to other economic systems at various times. Some remain relatively unchanged, ranging from uncontacted peoples, to poor areas of developing countries, to some cultures that choose to retain a traditional economy.
Capital can be generally defined as assets invested with the expectation that their value will increase, usually because there is the expectation of profit, rent, interest, royalties, capital gain or some other kind of return. However, this type of economy cannot usually become wealthy by virtue of the system, and instead requires further investments to stimulate economic growth. In other words, a subsistence economy only possesses enough goods to be used by a particular nation to maintain its existence and provides little to no surplus for other investments. Therefore, this type of economy aims to create economic stability so that capital can be accumulated and the inevitable economic surplus can be invested in other potentially lucrative business ventures.
- Pastoralism, the raising of grazing animals:
- Pastoral nomadism — all members of the pastoral society follow the herd throughout the year.
- Transhumance or agro-pastoralism — part of the society follows the herd, while the other part maintains a home village.
- Ranch agriculture — non-nomadic pastoralism with a defined territory.
- Distribution and Exchange:
- Reciprocity — exchange between social equals.
- Potlatching — a widely studied ritual in which sponsors (helped by their entourages) gave away resources and manufactured wealth while generating prestige for themselves.
- LETS — Local Exchange Trading Systems.
- A parasitical society, subsisting on the produce of a separate host society
- ^ http://www.businessdictionary.com/definition/subsistence-economy.html
- ^ http://www1.umn.edu/humanrts/edumat/sustecon/others/subsistence.htm Chief Seattle to President Pierce regarding sale of land
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Thu, 06 Mar 2014 07:33:45 -0800
They processed the milk, cheese and meat which formed the basic Mongolian diet. Usually each adult woman had her own herd of sheep to tend. As a result of women's abilities to maintain the Mongolian subsistence economy, the entire male population was ...
Sat, 08 Mar 2014 01:22:30 -0800
... since the days when few islanders could read and only the very rich had maps (and those very inaccurate), everyone had to carry several thousand place-names in his or her head, a mental gazetteer that enabled them to take part in a subsistence ...
Trinidad & Tobago Express
Sat, 22 Feb 2014 15:49:11 -0800
All remain trapped in a subsistence economy, what Lloyd Best calls the maroon economy, with little room to manoeuvre because of a system designed to keep them there. What change can we boast about when the Government could spend $8.2 million a ...
Wed, 05 Mar 2014 02:41:15 -0800
... disturbing, futuristic -- but on the other hand, they're simply the latest in a long line of "labour-saving" technologies that have impacted the relationship between humans and wage-work since the shift from a subsistence economy to a consumer economy.
Wed, 26 Feb 2014 10:57:25 -0800
untll cuba relies on private enterprise as the engine of growth it will continue to be a subsistence economy for most of its people. china learned this; cuba hasnt thus far. and it appears venezuela is on the same road as cuba. Terry Downey ...
Tue, 11 Feb 2014 21:16:09 -0800
According to Kwesiga, a country needs appropriate technology, strong skills base especially technical skills and affordable financing to move from a subsistence economy to industrialisation. “Skills have been created but the only missing link now is ...
The Observer (blog)
Sun, 16 Feb 2014 06:21:00 -0800
This little enclave modern economy was, however, surrounded by a sea of backwardness in the form of the subsistence economy (non-monetary GDP). When that little enclave economy collapsed, the tax collection also collapsed. By 1986, only 4% of GDP ...
The Voice of Russia
Fri, 14 Feb 2014 19:56:15 -0800
I think what we can observe, and this is the issue which makes many people scared about Afghanistan's future, is that we've got a country in which we've got a subsistence economy and besides that the only booming economy in Afghanistan is the drug ...
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