Social Institutions Introduction, Economy & Government

Sociology Social Institutions Introduction, Economy & Government

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Introduction

The word institution conjures many different images: a stark building surrounded by a high metal fence; a town hall; a church; the building that houses the college president’s office. To sociologists, however, an institution isn’t a building; an institution is what goes on inside the building. An institution is a set of norms surrounding the carrying out of a function necessary for the survival of a society.

People in every society must fulfill certain functions in order to survive. They must set up processes for rearing and educating children. They must develop a system for maintaining order and managing relations with other societies. They must agree on methods for producing and exchanging goods and services. Societies differ in how they carry out these functions, but they all must somehow accomplish the same tasks in order to survive as a social unit. Institutions may seem abstract, but they are part of a world that is very real.

Economy

The economy is the institution that provides for the production and distribution of goods and services, which people in every society need. Sometimes they can provide these things for themselves, and sometimes they rely on others to provide them. When people rely on others for goods or services, they must have something to exchange, such as currency (in industrialized societies) or other goods or services (in nonindustrialized societies). The customs surrounding exchange and distribution of good and services shape societies in fundamental ways.

Economic Systems

The two dominant economic systems in the world are capitalism and socialism. Most societies have varying blends of the two systems. Common hybrids of capitalism and socialism are welfare capitalism and state capitalism.

Capitalism

Capitalism is a system under which resources and means of production are privately owned, citizens are encouraged to seek profit for themselves, and success or failure of an enterprise is determined by free-market competition.

Example: The United States is one of the most purely capitalistic societies in the world. Most U.S. businesses are privately owned, but the government does regulate business practices.

Socialism

Socialism is a system under which resources and means of production are owned by the society as a whole, rights to private property are limited, the good of the whole society is stressed more than individual profit, and the government maintains control of the economy.

Example: China is a socialist country. The government owns and controls almost all natural resources.

Welfare capitalism

Welfare capitalism is a system that features a market-based economy coupled with an extensive social welfare system that includes free health care and education for all citizens.

Example: Sweden allows private business ownership, but the government controls a significant part of the economy. High taxes support an extensive array of social welfare programs.

State capitalism

State capitalism is a system under which resources and means of production are privately owned but closely monitored and regulated by the government.

Example: South Korea’s government works closely with the country’s major companies to ensure their success in the global marketplace.

Government

government is an institution entrusted with making and enforcing the rules of a society as well as with regulating relations with other societies. In order to be considered a government, a ruling body must be recognized as such by the people it purports to govern. A person or group that considers itself the leading body of a society has no power if the members of the society do not recognize the person or group as such.

Types of Governments

Most of the world’s governments fall into one of four categories: monarchy, democracy, authoritarianism, or totalitarianism.

Monarchy

Monarchy is a political system in which a representative from one family controls the government and power is passed on through that family from generation to generation. Most of the world’s monarchies are constitutional monarchies, in which the reigning member of the royal family is the symbolic head of state but elected officials actually do the governing. Many European countries have constitutional monarchies.

Example: Saudi Arabia is a monarchy. Until recently it was an absolute monarchy, meaning that the king had complete control of the country. The Saud royal family introduced a constitution in 1992.

Democracy

Democracy is a political system in which citizens periodically choose officials to run their government.

Example: El Salvador has a democratic form of government. Throughout most of the nineteenth century, El Salvador was beset by revolution and war, and from 1931 to 1979 it was ruled by military dictators. From 1980 to 1992, the country was torn apart by civil war. The country currently has a stable government and elected president.

Authoritarianism

Authoritarianism is a political system that does not allow citizens to participate in government.

Example: Zimbabwe is controlled by an authoritarian leader whose human rights violations and disastrous economic policies have brought on international condemnation. However, not all authoritarian governments are outcasts. China has an authoritarian government, but it is a member of the World Trade Organization and a major player in international politics.

Totalitarianism

Totalitarianism is a political system under which the government maintains tight control over nearly all aspects of citizens’ lives.

Example: Cambodia under the regime of Pol Pot and the Khmer Rouge from 1976 to 1978 was totalitarian. Under the banner of socialism, Pol Pot attempted a radical reformation of Cambodia. He forced the evacuation of the country’s cities and relocated citizens to communal farms in the countryside, where they were to be “reeducated” to become part of an idealized communist agrarian society. Pol Pot’s secret police tortured and murdered over a million “dissenters,” especially those he viewed as urban intellectuals.

Sociology Social Institutions Introduction, Economy & Government 
Sociology Social Institutions Introduction, Economy & Government

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