102 -
the economy does not (or should not) affect the social or political person who is equal to everyone else on a one-man one-vote basis. income can be smoothed out over time by means of savings, credit, which are commercially available in the market. Ideally, the State of largely regulatory nature and keeps order.
standing of a Fluctuations in
and insurances only makes laws
The ideal type of a fully capitalist economy is not even an approximation of realities anywhere. Neither can one be sure that the actual course of sccic- economic evolution is in that direction." Nor does the ideal type of a fully traditonal society exist anywhere in the real world. 2 All societies in the world are touched in varying degrees by the expanding markets on a global scale. This means that socio-economic dislocations and political disturbances are going on all the time throughout the world with no signs for a durable equilibrium while the economic role of the State continues to expand.
By a drastic simplification, the socio-economic evolution may be schematised with special emphasis on economic security as follows:
1.
2.
3.
The initial stage
This is the ideal type of a traditional society where there is no autonomous economy and where everyone is completely secure by virtue of customary rights and duties within the social structure of ascribed roles.
An early development stage
The traditional society remains strong and dominant, but the capitalist economy has acquired its Own strength. A dichotomy of the capitalist and traditional sectors becomes meaningful. A high degree of insecurity governs the life of those who participate in the activities of the capitalist sector. Many of them are temporary migrants to this sector from the traditional sector where they still retain claims to customary protection by frequent visits and remittances to their kin groups. These remittances are almost like insurance premiums (though for unspecified contingencies) SO that during periods of disablement, sickness, and unemployment the "insured" can expect protective benefits in the traditional sector.
An intermediate development stage
The capitalist sector is dominant now, though there is still a substantial residual of the traditional sector. Many of the capitalist sector participants have no claims to security
and protection in the traditional sector. Their payment of "premiums" has long since ceased, and they only have very remote cousins in the traditional sector who might as well be considered strangers. The State has begun to pay attention to the capitalist-sector
workers' well-being.
A high development stage
There is no more traditional sector. The market system, though imperfect in many respects, has conquered the traditional society. The imperfections in the supposedly self-regulating market system have given rise to corrective and remedial activities on the part of the State.
5.
The final stage
The ideal type of a self-regulating market economy where individuals are fully capable of providing for their Own economic security through Commercial arrangements.
1 The
present-day United States economy is the best example of how capitalist a real economy can be, although hardly an approximation to the ideal type discussed here yet. The United States experience indicates what happens to people and their habitats (communities) when they willingly become human resources moved and shuffleð by the labour market forces. See Vance Packard, A Nation of Strangers (New York: Pocket Books, 1974).
2 For
an illuminating discussion of traditional society, see E. E. Hagen, On the Theory of Social Change (Homewood, Ill.: Dorsey Press, 1962).
E-1195-2E:5
No comments yet.
Private notes are available after approval.