Assignment Code: BSOC-108/ASST/TMA/2023-24

Course Code: BSOC-108

Assignment Name: Economic Sociology

Year: 2023-24

Verification Status: Verified by Professor

Assignment - I

Answer the following in about 500 words each.

Q1) How is economics and sociology related with each other? Discuss.

Ans) By studying sociology and economics, two fields that are distinct from one another but are intricately connected to one another, one can acquire an understanding of human behaviour, societal structures, and the distribution of resources. This understanding can be gained through the study of different disciplines. As a result of the fact that they have similar interests in understanding social phenomena and human connections, their interconnection is demonstrated in a number of various ways because of their shared interests.

Focus on Human Behaviour That Is In Common:

The study of economics focuses on the decisions that individuals and groups make in relation to the distribution of limited resources in order to satisfy a limitless number of desires. An examination of social behaviour, interactions, and the institutions that shape individuals and groups within society is what sociology is all about.

An Examination of Institutions:

 The study of economics involves the examination of economic institutions such as markets, corporations, and governments that have an impact on the distribution of resources. The field of sociology is concerned with the study of social institutions that have an impact on social life, such as the family, education, and government.

Aspects of Distribution and Inequality:

The field of economics examines the distribution of wealth and income, with a focus on addressing issues of inequality. The field of sociology investigates social stratification by investigating the ways in which characteristics such as class, race, and gender influence access to services and resources.

Labor and Hard Work:

In economics, the labour market, productivity, and the economic value of employment are the primary areas of scrutiny. An examination of the social elements of work, labour relations, and the influence that vocations have on both individuals and communities is the focus of sociology.

Globalization:

An examination of international commerce, financial markets, and the interdependence of economies. The field of sociology is concerned with the study of the social effects of globalisation, which include cultural exchange, migration, and inequality amongst people.

Policy in the public sector and social welfare:

Economics evaluates the economic repercussions of a number of different activities in order to provide direction for policy decisions. The study of sociology takes into account issues of social welfare and justice, as well as the influence of policies on various groups within society.

Economics based on behaviour:

The study of economics incorporates sociological and psychological ideas in order to get an understanding of the ways in which psychological elements influence economic decisions. To contribute to the field of behavioural economics, sociology investigates the societal influences that have an effect on individual behaviour.

Biological Sociology of the Environment and Ecological Economics:

Through the study of economics, one can establish theories and policies about sustainable development and the management of resources. Exploring the attitudes, behaviours, and structures of society that have an impact on environmental problems is the focus of sociology.

Capital for Society:

This school encourages multidisciplinary research in economic sociology, institutional economics, and social economics.

Studies that span multiple disciplines:

This school encourages multidisciplinary research in economic sociology, institutional economics, and social economics.

Q2)Describe the concept of economy described by the classical thinkers like Karl Marx, Max Weber and E. Durkheim.

Ans) The classical theorists Karl Marx, Max Weber, and Emile Durkheim each offered distinctive viewpoints on the structure, operation, and role of the economy within society. As a result, they had a considerable impact on the understanding of the economy because of their contributions.

Karl Marx:

Among the most influential figures in the fields of economics and sociopolitical philosophy, Karl Marx is credited with laying the groundwork for the critique of capitalism. The fundamental text that he wrote, "Das Kapital," is where the majority of his economic concepts are laid out. Among Marx's most important ideas are:

Historical Materialism:

The assertion that the economic structure of a society influences its social and political institutions is at the core of Marx's economic thinking, which is founded on the historical materialism school of thought. On the basis of the main form of production, he distinguished between various historical epochs, such as feudalism and capitalism.

Labor Theory of Value:

Marx proposed the labour theory of value, arguing that the value of a commodity is determined by the socially necessary labour time required for its production.

He highlighted the exploitation inherent in capitalism, where surplus value (profit) is extracted from the labour of workers.

Class Struggle:

Marx placed a strong emphasis on the class struggle as the primary impetus behind historical events. Under the capitalist system, he envisioned a proletarian revolution that would ultimately result in the construction of a communist society without social classes.

Max Weber:

Max Weber, a pioneer in the field of sociology, investigated the connection that exists between economic institutions and cultural ideals. Among his most important contributions to the field of economic sociology are:

Protestant Ethic and the Spirit of Capitalism:

Weber explored the connection between Protestantism, particularly Calvinism, and the rise of capitalism. He argued that the Protestant work ethic, emphasizing diligence, frugality, and rationalization, contributed to the development of capitalist values.

Bureaucracy and Rationalization:

Weber analysed the emergence of bureaucratic structures in the modern economy.

He identified the rationalization process, where traditional and charismatic forms of authority were replaced by bureaucratic, rule-based systems.

Types of Authority:

Weber classified authority into three types: traditional, charismatic, and legal-rational. In economic organizations, legal-rational authority, characterized by rules and regulations, became dominant.

Emile Durkheim:

Emile Durkheim, a key figure in the development of sociology, focused on the relationship between economic activities and social solidarity. His contributions include:

Division of Labor:

Durkheim studied the division of labour, emphasizing its positive and negative consequences.

While specialization enhances productivity, excessive division of labour can lead to anomie (a state of normlessness) and social disintegration.

Mechanical and Organic Solidarity:

Durkheim distinguished between mechanical solidarity (typical of traditional, pre-industrial societies) and organic solidarity (characteristic of industrial societies).

In organic solidarity, interdependence arises from the specialization of tasks, fostering social cohesion.

Social Integration:

Within the context of fostering social integration, Durkheim investigated the function that economic institutions play. His contention was that the operations of the economy make a contribution to the moral order and collective conscience of the society.

Assignment – II

Answer the following questions in about 250 words each.

Q3) What is the Washington Consensus? Explain.

Ans) Neoliberal economic policies and reforms were popular in the late 20th century, particularly in the 1980s and 1990s, as the Washington Consensus. International financial institutions like the IMF, World Bank, and U.S. Treasury supported these policy proposals, which were generally linked to free-market liberalism. Economist John Williamson coined "Washington Consensus" in 1989.

Macroeconomic Stability:

Emphasis on maintaining low inflation rates and fiscal discipline to achieve overall economic stability.

Trade Liberalization:

Advocacy for reducing barriers to international trade, including tariff and non-tariff barriers, to foster economic openness and globalization.

Deregulation:

Calls for reducing government intervention in markets, including the removal of regulations that may impede private sector activities.

Privatization:

Encouragement of privatizing state-owned enterprises to enhance efficiency and promote competition in various sectors.

Market-Oriented Reforms:

Support for market-oriented policies, such as encouraging private investment, liberalizing capital markets, and reducing restrictions on foreign direct investment.

Fiscal Responsibility:

Promoting sound fiscal policies, including minimizing budget deficits and maintaining sustainable public finances.

Property Rights and Rule of Law:

Emphasis on establishing and protecting property rights, as well as strengthening the rule of law, to create an environment conducive to investment.

Social Safety Nets:

Acknowledgment of the need for social safety nets to mitigate the potential negative consequences of economic reforms on vulnerable populations.

While the Washington Consensus was presented as a one-size-fits-all approach to economic development, it faced criticism for its potential negative social impacts, such as income inequality and social unrest. Critics argued that the emphasis on market-oriented reforms often neglected the importance of social and institutional contexts in different countries.

Q4)What did Karl Polanyi mean by the concept of embeddedness of economy?

Ans) In 1944's "The Great Transformation," Hungarian economic historian and social theorist Karl Polanyi established the "embeddedness of the economy" notion. Polanyi's explanation of market societies' social and economic transformations centres on this idea.

The embeddedness of the economy refers to the idea that economic activities are not separate or isolated from the broader social and cultural context in which they occur. In traditional, pre-market societies, economic processes were deeply embedded within social relations, cultural norms, and political structures. Economic transactions were governed by social obligations, reciprocity, and community norms rather than by impersonal market forces.

According to Polanyi, the process of "disembodying" began with the emergence of market economies in the 19th century. In these market-driven systems, economic activities started to operate outside their traditional social embeddedness. The rise of the self-regulating market, characterized by the commodification of land, labour, and money, led to a separation of economic processes from their societal embeddedness.

Polanyi argued that this disembeddedness created social dislocation and upheaval, as market forces began to challenge and undermine traditional social institutions. The consequences included social unrest, labour exploitation, and environmental degradation. To counteract the negative impacts of an unregulated market, Polanyi advocated for a "double movement" — a societal response that seeks to re-embed the economy within social and political institutions.

The embeddedness thesis highlights the interconnectedness of economic, social, and cultural dimensions, emphasizing that economic activities cannot be fully understood or analysed in isolation from their social context. Later scientists in economic sociology, anthropology, and political economy have adopted this perspective to analyse economic events in their broader social contexts.

Q5)Describe the different forms of pastoralism.

Ans) The rearing and herding of animals, most commonly livestock, is the primary economic activity that constitutes the practise of pastoralism. Different ecological and cultural circumstances have resulted in the development of a variety of pastoralism, including the following:

Nomadic Pastoralism:

Nomadic pastoralists are people who move with their livestock in search of fresh grazing lands. They have no permanent settlements and follow a cyclical migration pattern. Nomadic pastoralism is common in arid and semi-arid regions where vegetation is sparse.

Transhumant Pastoralism:

Transhumant pastoralists also move with their livestock, but their migration is seasonal. They have a home base or settlement but move to higher altitudes in summers and lower altitudes in winters, seeking suitable pastures.

Sedentary Pastoralism:

Sedentary pastoralists have a fixed or permanent residence. They practice livestock rearing but do not engage in regular migrations. Instead, they may cultivate crops alongside their pastoral activities.

Agro pastoralism:

Agro pastoralists combine both agriculture and pastoralism. They engage in crop cultivation and livestock herding, integrating these activities to maximize resource use efficiency.

Commercial Pastoralism:

In this form, pastoralists focus on the market-oriented production of livestock and livestock products. They often participate in regional or global trade, selling animals, wool, milk, and other products.

Intensive Pastoralism:

Intensive pastoralism involves high stocking rates of animals on limited land. Pastoralists may use supplementary feeding and veterinary care to maximize the productivity of their herds.

Community-Based Pastoralism:

Some pastoralist communities organize themselves collectively to manage and sustainably use common grazing lands. This form emphasizes communal decision-making and resource management.

Assignment – III

Answer the following questions in about 100 words each.

Q6)What were the core ideas of Mark Granovetter on “embededness” in society?

Ans)Mark Granovetter introduced the concept of "embeddedness" in his influential work, "The Strength of Weak Ties." He argued that social networks, rather than individual traits or market forces alone, profoundly influence economic behaviour. Embeddedness refers to the degree to which economic activities are enmeshed in social relations. Granovetter emphasized the importance of both strong and weak ties in social networks, with strong ties providing social support and weak ties offering diverse information and opportunities. By acknowledging the social environment and connections as significant aspects that shape economic transactions and outcomes, this perspective poses a challenge to the conventional economic models that have developed over the years.

Q7) What is the meaning of money? Explain.

Ans) Money is a medium of exchange, unit of account, and store of value widely accepted in transactions. It serves as a convenient tool to facilitate the exchange of goods and services, allowing for specialization and trade. Money comes in various forms, such as coins, banknotes, or digital currency, and holds value based on trust in its ability to retain purchasing power. Its essential functions include acting as a medium for transactions, a standard for pricing, and a reliable store of wealth. The concept of money is fundamental to contemporary economies because it offers a standardised method of carrying out economic transactions.

Q8) Discuss the main characterstics of a peasant economy.

Ans) A peasant economy is characterized by small-scale, subsistence agriculture where farmers, known as peasants, cultivate small plots of land for personal consumption. Key features include limited mechanization, traditional farming methods, and reliance on manual labour. Peasant economies often prioritize self-sufficiency, producing mainly for their own needs rather than for the market. Landownership tends to be distributed among families, promoting a sense of community. Traditional traditions are often the foundation of peasant cultures, which are also plagued by difficulties such as low production and susceptibility to changes brought about by the outside world.

Q9) Define and discuss the meaning of pomology with examples?

Ans) Pomology is the branch of horticulture that deals with the cultivation of fruits. It involves the study of fruit trees, their cultivation, breeding, and management. Pomologists focus on improving fruit quality, yield, and resistance to diseases. Examples of fruits studied in pomology include apples, oranges, grapes, and peaches. Through pomological research, scientists aim to enhance fruit varieties, develop pest-resistant strains, and optimize growing conditions for maximum productivity. The objective is to make a contribution to the production of fruit in a sustainable manner, with the intention of ensuring a reliable and high-quality supply of fruit for both the domestic market and the commercial market.

Q10) What do you understand by capitalism? Explain.

Ans) Capitalism is an economic system characterized by private ownership of the means of production, where individuals or corporations operate for profit in a competitive market. In capitalism, resources and businesses are privately owned, and prices, production, and distribution of goods and services are determined by market forces. The pursuit of profit and self-interest is a driving force, and the government's role is often limited to enforcing contracts and protecting property rights. But detractors believe that if capitalism is allowed to continue unchecked, it can result in inequality and exploitation, despite the fact that it fosters innovation, entrepreneurialism, and economic expansion.