Subsistence economy

Definition

A subsistence economy is an economic system where communities rely on natural resources to meet their basic needs for food, shelter, and clothing, primarily through methods like hunting, gathering, farming, or herding. This type of economy emphasizes local production and consumption, with minimal surplus and trade, fostering a close relationship between people and their environment. In today's context, it highlights the differences in resource use and cultural practices in relation to global economic changes and pressures.

5 Must Know Facts For Your Next Test

1. Subsistence economies can be classified into different types based on their methods of resource acquisition: foraging, horticulture, pastoralism, and agriculture.
2. In a subsistence economy, communities usually produce just enough to meet their daily needs, leading to very little surplus that could be traded or sold.
3. Subsistence economies often have strong social structures that are tightly knit, with community cooperation being vital for survival and resource sharing.
4. Globalization has significantly impacted subsistence economies by introducing market dynamics that can threaten traditional practices and resource availability.
5. As globalization progresses, many subsistence economies face challenges such as land appropriation, climate change, and the loss of cultural identity due to outside economic pressures.

Review Questions

• Compare different types of subsistence economies and how they adapt to their environments.
  • Different types of subsistence economies include foraging, horticulture, pastoralism, and agriculture. Foragers rely on wild resources available in their environment, adapting to seasonal changes. Horticulturalists cultivate small plots of land while relying on natural resources for additional food. Pastoralists move with their herds to find grazing areas, showing adaptability to fluctuating conditions. Agricultural societies focus on large-scale farming, often leading to settled communities but may struggle with soil depletion if not managed sustainably.
• Discuss how globalization has influenced traditional subsistence economies in various regions.
  • Globalization has introduced market forces that challenge traditional subsistence economies by pushing communities towards cash crop production instead of sustainable practices. This shift can lead to over-exploitation of local resources and environmental degradation. Additionally, the influx of foreign goods may diminish the value placed on local products and traditions. Many communities face pressure to conform to global market demands while struggling to maintain their cultural practices and identity amid these changes.
• Evaluate the long-term sustainability of subsistence economies in light of modern economic pressures and environmental challenges.
  • The long-term sustainability of subsistence economies is increasingly threatened by modern economic pressures like globalization and environmental challenges such as climate change. These economies typically depend on stable ecosystems for their survival. As climate change affects weather patterns and resource availability, traditional methods may become less viable. Furthermore, encroachment by industrial agriculture or urban development can lead to loss of land and resources. To sustain these economies, it’s crucial to integrate traditional knowledge with sustainable practices while advocating for the rights of these communities against external pressures.

Related terms

Foraging: The act of searching for and gathering wild food resources, such as plants and animals, typically associated with hunter-gatherer societies.

Pastoralism: A subsistence strategy focused on raising and herding livestock for food, which provides communities with mobility and adaptability to environmental conditions.

Agricultural Society: A society that primarily relies on farming and cultivation of crops as a means of subsistence, often leading to more permanent settlements and trade networks.