Socialization and Enculturation

Society is different from culture. There are many cultures within a society. While members of society share many of
the same expectations and experiences, cultural groups create ones that differentiate us from others in society.

Socialization
It is the process through which people learn to understand the societal norms, expectations, and values as members
of society.

Enculturation
It is the process by which an individual adopts the behavior patterns of the culture in which a person is immersed in.

tatuses
Our society is guided by a network of similar statuses and roles that govern human interactions that we call social
structure. It also refers to the manner in which society is arranged into predictable interactions.

Status
 describes the position an individual occupies in a particular setting, in a group, or in society
 defines and clarifies the rights and obligations expected from a person

Example: a farm boy, a teacher, a human rights defender

Classifications of Statuses
There are three kinds of statuses.

1. Ascribed Status

 a position a person holds in a social system that one attains involuntarily or by birth
 inherited and not based on the person’s abilities, accomplishments, or efforts
 can be rigid and unchanging since it is given to a person when he is born and is often involuntary

Example: a Filipino national, a male or a female, a king or a queen, a son of a vendor, a firstborn

2. Achieved Status
  a position one holds in a social system that one attains based on merit or effort
 acquired due to unique skills, knowledge, or abilities, and are based on standards that can be controlled
 a position that has been earned or chosen and is mostly dictated by abilities, skills, and life choices

Example: a student, an employee, a doctor, an artist

3. Master Status

 the greatest role in a person’s life that determines social identity and general position in society
 can be based on any status, such as gender, ethnicity, economic status, religious or spiritual tradition,
employment status, or family responsibility such as a parent or grandparent
 may come with a sense of prestige for some−the consensus from the community around them that a status
is to be desired

Example: a CEO, an activist, a Pope

The chart shows the differences among the three statuses.

Roles
 expectations that are set for a person given the status he or she occupies
 pertains to the norms, behaviors, values, and personal characteristics that are attached to the status of the
person

Examples:

 Status: student

Roles: attending classes, studying lessons, communicating with the teacher

 Status: teacher

Roles: teaching, giving feedback, assessing or evaluating the performance of the students

 Status: call center agent

Roles: answering questions, solving problems, researching information

The chart below shows the different statuses and their corresponding roles.
Role Exit and Role Conflict
What are some issues concerning roles?

Role exit pertains to the course of disengaging a person from his or her role that is essential to his or her self-
identity.

Example: when a person retires from a long career and must shift from the role of an employee with responsibilities
to someone just living a comfortable life, or when an individual becomes a parent and has to change their lifestyle.

Role conflict arises when incompatible expectations occur from two or more statuses that a person is occupying.
Performing the assigned role of one status makes it challenging for the person to play the assigned role of another
status.

Example: It is very challenging for a woman to be the best mother to her children and the best employee to her
company all at the same time.

The Impact of Statuses and Roles in Attaining Society’s Goals

As members of society, people acquire statuses and roles which are necessary for socializing within their society.
These statuses and roles are important elements in the process of socialization because they serve as agents for
the fulfillment of society’s goals.

We are all encouraged to fulfill the roles of the statuses we are occupying at present and in the future stages of our
lives for us to be better members of the community.

Conformity and Deviance

In our everyday lives, we notice that there are specific standards for our actions, simple or complex, set by society.
People tend to have different responses with these imagined pressures depending on their upbringing, values, or
ideals. These reactions are called conformity and deviance.

Conformity
 is linked to the obedience of a person to the norms in order to be acceptable in a particular society, group, or
social setting

Example: The majority of the class members, through a group consensus, agreed to accept the proposal.
Deviance
 is the non-conformity or violation of the standards of conduct, expectations, or norms of a particular group or
society

Example: There are power struggles among netizens who disagree on the re-imposition of the death penalty.

Social Control
It is believed that society must have a social order to function smoothly. The social order includes social standards,
laws, rules, and norms which are set by society, whether they are by the majority or by a hierarchy. Ideally, people
must exhibit social order, but in reality, no society succeeds in getting all its members to behave as expected all the
time. If social order is seen as the only way for communities to survive, they must have ways of making people
conform to social norms.

Social Control Theory

 This is based on the idea that a person's fundamental belief system, values, morals, commitments, and
relationships promote a protected environment.
 Oftentimes, individuals who have these beliefs and commitments have a level of self-control over their
actions.
 It examines or evaluates how society affects criminal behavior.
 It emphasizes the idea that when people are involved and in contact with their community, they are less
likely to perpetrate criminal acts.

Gossip, Social Ostracism, and Laws and Punishments

Failure to embrace the accepted norms and values of society or inability to perform the roles of a person’s status
may lead to consequences in the form of gossip, social ostracism, and laws and punishments.

Gossip
 refers to the idle talk or rumors about the personal or private matters of others
 may lead to the discrediting of the reputation of the subject

Social Ostracism
 refers to the exclusion of an individual from being socially accepted
 includes the removal of social privileges and friendship with the general members of the society
 a result of one's actions that give him or her an impression of not being a worthy member of that society

Laws and Punishments

Laws refer to the set of rules by the government to regulate the way in which society behaves.

Punishments pertain to the pain, penalty, or suffering that is imposed on a person who violates a law.

People learn the mechanisms of social control through interactions with other people. Couples who are expected to
have a respectable family choose not to quarrel out loud to avoid being talked about around their neighborhood.

An individual will conform with his peers to avoid social rejection or ostracism. To avoid punishment, people must
follow the law.

Social Processes and Relationships

The illustration below shows the social processes and relationships of deviance, conformity, and social control.
In the given scenario, suppose that in one exclusive school, it is the norm for students to be at their best behavior at
all times while inside the school premises. All students therefore continuously make an effort to maintain their grace,
poise, and good appearance in order to avoid any sanctions.

Liz, a difficult and problematic student, transferred to the same school last year. In just one year of stay, she was
able to set up at least 5 pranks on her classmates and teachers. Despite being punished for several times, she still
cuts classes and comes to school not wearing the prescribed uniform. There was also a time when she punched two
of the school's guards because they did not let her vandalize the principal's office. Liz's classmates do not want to
be friends with her because of her behavior. They call her "Crazy Liz" behind her back.

, the school was the representation of society−the students were the conformists and Liz was the defiant one. The
school had particular rules and standard of behaving, and Liz's actions caused disturbance within the school. They
did not only cause chaos, but they also led Liz to be stigmatized.

Negative sanctions will be given to people who exhibit deviant acts, while effective sanctions will be given to those
who observe or conform.

Deviance as Explained by the Structural Strain Theory

The forms of deviance are the responses or adaptations by people in a society caused by the imbalance or “strain”
between the valued goals in the society and the legitimate or acceptable means to achieve such goals. This idea is
taken from the Structural Strain Theory conceptualized by sociologist Robert K. Merton. Two variables taken into
account in this theory are valued goals and legitimate means to achieve goals.

Valued Goals
These are goals that are defined by society as valuable, or simply, the goals that are typically pursued in a society.

Example: financial success

Legitimate Means to Achieve Goals

These are the acceptable ways people can do to achieve such valued goals in a society.

Example: get a good education

Types of Adaptation
In our everyday lives, we would notice that there are actions considered to be legitimate or acceptable for a
particular society toward achieving valued goals.

While people usually conform to legitimate or acceptable means to achieve goals, there are people who will not.
One reason for this is because the legitimate means are just not available for them, and so unequal opportunities
exist to achieve these goals. Merton identified five typologies of how people adapt to their value system or the goals-
means dynamics of their respective society.
These typologies are:

 conformity–accepts goals and the institutionalized, acceptable or legitimate means of obtaining them,
 ritualism–rejects goals and accepts or adheres to institutionalized means of obtaining them,
 retreatism–rejects both goals and means of obtaining them,
 rebellion–creates new goals and new means of obtaining them, and
 innovation–accepts goals and rejects institutionalized means of obtaining them.

Ritualism, retreatism, rebellion, and innovation are forms of deviance.

Forms of Deviance
Merton conceptualized four responses that are considered deviant and caused by a strain or imbalance between
valued goals and legitimate means in a particular society.

Ritualism
Ritualism is exhibited when someone rejects traditional cultural goals but still adheres to the culturally approved
methods or rules for making progress towards the same goals.

Example: An employee still stays in his job even though he is aware that it is a dead-end job. In ritualism, people
experience feelings of despair and anomie (social instability) that result to modification or abandonment of the
idealized cultural goals, but still persist at a ritualized, unfulfilling line of work.

Retreatism
Retreatism is the response that rejects or abandons both cultural goals and the institutionalized or legitimate means
for attaining them.

Example: Examples of people who exhibit retreatism are drug addicts and alcoholics. The ultimate form of
retreatism is suicide.

Innovation
Innovation entails the acceptance of the valued goal but the rejection of legitimate or institutionalized means to
achieve them (resorting to criminal or delinquent acts).

Example: An example of this is when a person wants a nice car but does not have enough money, so he steals
money from the bank. Some people may resort to stealing or dealing drugs to achieve cultural goals.

Rebellion
Rebellion not only rejects the valued goals and the legitimate means of the established society but also actively
attempts to substitute new goals and means. This can be applied to political deviants who attempt to modify the
existing structure of society.

Example: Examples for this are neo-Nazis and other hate groups. The rebels will publicly acknowledge their
intention to change the norms and the social structure.

The table below summarizes Merton’s typology of individual adaptations.

Legend:

 "+" signifies acceptance

 "–" signifies rejection
 "+ and -" signifies rejection of prevailing goal or means and substitution of new goal or means

Human Dignity and Rights

As stated, “All human beings are born free and equal in dignity and rights.” No color of skin, physical disability,
sexual orientation, or religious belief can stop anybody from protecting his or her dignity and enjoying his or her
rights as a person. Human dignity and rights go together and are essential to the attainment of common interest.

Human Dignity
There are two ways to understand human dignity.

The religious aspect believes that humans have a unique place in the world and that human life is sacred.

In moral, ethical, legal, and political discussions, human dignity is used to express the idea that a being has an
innate right to be valued, respected, and to receive ethical treatment.

Human dignity

 an individual or group's sense of self-respect and worth, physical and psychological integrity, and
empowerment
 affirms that every person is worthy of respect; that our value as people should never be debated
 means having a quality life and not experiencing oppression or manipulation
 is uplifted when people are granted with their rights

It is, therefore, true to say that any right safeguarded by the International Human Rights Law is substantiated by the
dignity of the human person.

Human Rights
 are rights inherent to all people, regardless of nationality, place of residence, sex, national or ethnic origin,
color, religion, language, or any other status
 are the freedom and privileges that belong to every person in the world
 guarantees that all people shall be ensured to enjoy life, liberty, and security

Characteristics of Human Rights

Human rights are universal and inalienable, indivisible, interdependent, and interrelated.

Universality and Inalienability

All human beings are born free and equal in dignity and rights.

Indivisibility
Whether they relate to cultural, civil, economic, political, or social issues, human rights are inherent to the dignity of
every human person.
Interdependence and Interrelatedness
The fulfillment of one right often depends on, wholly or in part, the fulfillment of others.

Both human dignity and rights should not be taken away, but sadly, they are denied to some people as manifested
by poverty, illiteracy, crime, and discrimination in society.

Inclusive Citizenship
Inclusive citizenship is a governing policy that promotes human dignity and human rights.

 It focuses on legal equality for each citizen directed at giving all citizens a strong feeling that they are part of
the overall society.
 Its policies include laws that provide non-segregated access to all citizens, regardless of their race, gender,
religious affiliation, and socioeconomic status.
 While a government cannot guarantee equality in all private organizations, inclusive citizenship focuses on
the legal rights of all individuals in cases where the government determines their rights of inclusion.
 It establishes a governing foundation where it gives its citizens a sense of security so that they will feel that
their government hears and respects their ideas.
 In return, people will be more inclined to voice out their grievances through proper channels, such as
petitioning a representative to investigate their situation.
 Moreover, this right can motivate the citizens to participate in government activities, raising voter turnout,
civic participation, and serving in the military.

Under inclusive citizenship, there are rights that the government provides for its citizens. Examples of these are the
equal right to vote, equal right to serve in the military, same right to marry, similar tax responsibilities, and equal right
to represent others in the government.

Citizens also have access to public funds, public organizations, and equal rights and acceptance by national figures.

Protection of Human Dignity and Rights

Laws and declaration support the protection of human rights and the dignity of people. The International Human
Rights Law constitutes the basis of fundamental rights. With this law, dignity is also protected. It must be respected,
even where a right is restricted. Conventions such as the 1997 European Union Convention for the Protection of
Human Rights and Dignity of the Human Being are also held to promote rights and dignity through different fields

The Common Good

The common good refers to:

 what is shared and advantageous for all or most members of a given society, and
 what is achieved by citizenship, be it collective action or active participation.

When dignity and rights are granted to people, the common good is achieved. It happens when society benefits as a
whole. The common good is reached when the majority, a high number of individuals, or society as a whole benefits
from a situation or event.

The recognition of people's dignity and rights is the foundation of "freedom, peace, and justice in the world," as
stated in the Universal Declaration.

Protection of Human Dignity, Rights, and the Common Good

Human dignity, rights, and the common good are not new concepts; neither are the issues about their existence in
society.

 Can they be granted?

  Can they be achieved?

Since ancient times, literature figures have given criticisms on issues of the existence and absence of human rights,
dignity, and the common good. Among the list are the works of Aristotle, Rousseau, and Machiavelli. In modern
times, not much has changed. The same old questions and problems are asked, but the modern world continues to
work towards addressing such concerns.

International organizations and different countries pledged to the United Nations to uphold human rights and dignity.
If proven to disobey laws and rules, one has to be punished in accordance with the law.

Ideally, the common good is protected when all people enjoy their rights and preserve their dignity. For an individual,
this means having freedom as a consumer, owner, and citizen that also includes right to rest and leisure, equal
access to public works and services, freedom of association, religion, or speech and employment.

We do not live alone in society. From birth until death, we are surrounded by many people. Most of these people are
our relatives, friends, and neighbors, while some are strangers. We are bound to all individuals who are related to us
either by blood or by descent.

Kinship Ties and Social Networks

The relations based on blood may be close or distant. The bond of blood which binds people together in a group is
called kinship.

 According to the Dictionary of Anthropology, kinship system involves socially recognized relationships based
on supposed and actual genealogical bonds. These relationships are products of social interactions and are
recognized by society.
 In a broader sense, kinship can refer both to the patterns of social relationships themselves and to the study
of the patterns of social relationships in one or more human cultures.
 Kinship or relationship can also refer to a principle by which people or groups of individuals are organized
into roles, social groups, categories, and genealogy through kinship terminologies.
 On the other hand, a social network is a social structure made up of a set of social actors (individuals or
organizations), sets of a partner or dyadic ties, and other social interactions between actors. It represents
relationships and flows between people, groups, and organizations.

The Filipino Concept of Kinship

 According to F. Landa Jocano, "Kinship characterizes the overall framework of community relations as it
enables Filipinos to map their relationships and be able to work together harmoniously. It lies deep in the
heart of every Filipino as it forms the core of the Filipino social organization. It significantly influences the
formation, structure, and functions of institutions, relationships, and values of the Filipinos."
 There is no generic Filipino term for kinship as each language group in the country created its terminology,
but the term kamag-anak or magkakamag-anak, from the Tagalog-based language, is widely used.
 Kinship helps Filipino people in understanding their relationships with others and be able to interact with
each other with little or without any difficulty.

Kinship by Blood or Consanguineous Kinship

 The bond of blood is called consanguineous kinship. The consanguineous kin is related through blood.
The relationship between the parents and their kids, and that among siblings, is consanguineous kinship.
 Thus, son and daughter, brother and sister, uncle and aunt, nephew and niece, and cousins are
consanguineous kin, that is, related through blood. With this connection, it can be pointed out that blood
bond may be actual as well as supposed.
 In polyandrous tribes, the real father of a child is unknown. An adopted child is treated as if it were one's
own biological child. As a result, blood relationship may be established not only on biological basis but also
by social recognition.
Genogram
 A genogram is a graphical representation of one's family and its members' relationship to one another.
 It is widely used in medicine, sociology, and genealogy to determine medical, psychological, sociological, or
historical patterns of health and behavior.

Descent System
 A descent group is any social group wherein membership depends on a common descent from a real or
mythical ancestor. This system of acknowledged social parentage, which varies per society, is where a
person may claim kinship ties with another.
 If there is no limitation on the recognition of kinship, everybody would be kin to everyone else. But in most
societies, some restrictions are imposed on the perception of common ancestry so that an individual regards
many of his associates as not his kin.
 The importance of descent comes from its use as a means for one person to assert rights, privileges, duties,
and status with another person who may be related to the first, either because one is an ancestor of the
other or because the two acknowledge common ancestors.
 Descent has limited influence when rights to succession, inheritance, or residence follow kinship lines.

One method of limiting the recognition of kinship is to emphasize relationships through one parent only. Such is
called a unilineal kinship system. There are two types of this system−patrilineal systems, in which relationships
reckoned through the father are emphasized, and matrilineal systems, in which relationships reckoned through the
mother are emphasized.

In a bilateral descent, all descendants of an ancestor enjoy membership of a common descent group by any
combination of male or female linkages.

Kinship Ties and Social Networks

 The relations based on blood may be close or distant. The bond of blood which binds people together in a
group is called kinship.
 According to the Dictionary of Anthropology, kinship system involves socially recognized relationships based
on genealogical bonds. These relationships are the products of social interaction and are recognized by
society.
 In a broader sense, kinship can refer both to the patterns of social relationships themselves and to the study
of the patterns of social relationships in one or more human cultures.
 A social network is a social structure comprised of individuals joined by a particular pattern of links or
relations. Social networks are indicative of a person or an organization's relations, membership, links, and
connections. It is noteworthy that these systems serve a role in the attainment of the goals of society.
 Through networks serving as media for the spread and exchange of ideas, people get connected, get
updated, and become aware. Furthermore, social networks act as social support systems that provide
people information and guidance in times of need.

Kinship by Marriage
 Marriage is a formal and legal union of two people as partners in life. It is the universal social institution that
promotes procreation and establishes the bonds that are the basis of the household, family, and kinship
system.
 Marriage is a legally recognized social contract between two people, traditionally based on a sexual
relationship, and implying a permanence of the union. The statuses the spouses acquire go through from
institution to companionship that may endure and sustain in their life cycle (Burgess and Locke, 1945). They
play complementary roles to meet their material, sexual, emotional, psychological, and spiritual needs for
their survival.
 Marriage gives the offspring a position in society as he or she may be categorized as a legitimate son or
daughter. It establishes continuing connections between the kin of each party. It is always symbolically
marked in some way, usually a public ceremony.
Cross-cultural Marriage
A cross-cultural marriage is a marriage between two people from different cultures.

How does this happen? As they say, "Love is blind." It does not care about race, color, or culture. We see more and
more marriages of people from different cultures nowadays.

In marrying a person from the same country, distinct differences in family life, values, educational attainment, ideas,
and ways of living already exist. By comparison, marrying a person from a different country has even more
differences.

Examples:

 A traditional Ifugao man is married to a liberated Catholic woman.

 A Japanese woman is married to an English man.

In a cross-cultural marriage, it is important to respect your spouse's native culture and deal with your differences in a
loving manner.

Here are some tips for avoiding challenges in cross-cultural marriage/relationships:

 embrace the opportunity,

 understand, respect, and compromise,
 get first-hand experience of each other's cultures,
 pass on both cultures to your children,
 think positively about your differences,
 maintain contact with family, and
 when possible, travel together.

Monogamy vs. Polygamy

By the number of spouses, a marriage can either be a monogamy or polygamy.

Post-marital Residency Rules

After marriage comes a new chapter in a couple's lives. One of the primary concerns couples usually are faced with
is where to live. Kinship system, economic concerns, and personal factors are among the determining factors for
residency among newlyweds. Although not a cultural certainty especially in this modern age, newly married couples
opt to live with existing households than establish their own. Now, comes the question: Whose family is favored or
culturally prescribed?
Kinship by Ritual
Anthropologist and ethnographers sometimes call kinship by ritual as fictive kinship. The word means "fake" or
"created by imagination." This type of kinship is not false, but it is just that in this type of kinship, relationships
among individuals are based neither on blood ties nor by marriage.

 Kinship by ritual refers to relationships among individuals who recognize their associations and obligations
despite the absence of blood or marriage bonds. Fictive kinship may tie people together in ties of affection,
concern, obligation, and responsibility. Examples include adopted or surrogate families, brotherhood,
sororities, or peer groups.
 Kinship by ritual function is used in fictive kinship links for non-kinship purposes. Members of a brotherhood
or fraternity consider each other as brothers despite the absence of blood relations among them. Such act
naturally builds a harmonious relationship between them.

Look at the table below to know about some examples of ritual kinship.

Importance and Functions of Ritual Kinship in Society

Kinship by ritual is an essential social network for it is where a good relationship is built and strengthened. It has
positive contributions for shaping our old and new society. Kinship by ritual, in its various forms, serve many
functions in the community. It reinforces affinity or relationships within society by providing a framework for social
interaction. Defined by acts of sharing and support, it testifies "friends as family."
Below are specific functions of the different types of ritual kinship.

Kinship and Family Dynamics

Kinship are social relationships derived from universal experiences of mating, birth, and nurturance. Kinship means
being related to others. Being related to other people is something that is defined by culture and not necessarily
determined by biological relations.

A family is a socially recognized group, strengthened by the concept of kinship, where people are connected by
blood, marriage, or adoption, and where a caring relationship mainly occurs. Although kin group and family are not
one and the same, the family is actually one of the strongest kinship ties in our society.

The family has a very important role in society.

 It forms an emotional connection among people and serves as an economic unit of society.
 It is considered as the basic building block of society.
 It is the institution mostly responsible for the “achievement of adult satisfaction and social integration.” (Ross
and Sawhill, 1975)
 It is also responsible for the distribution of economic resources from those who earn them in the marketplace
to those who are dependent on those earnings. (Ross and Sawhill, 1975)

Functions of Family
The family as a form of kinship serves very important functions in society.

 It is the smallest unit that cooperates in production and distribution.

 It enables and promotes socialization processes for the youth.
 It creates alliances with other family units.
 It regulates sexual behavior.
 It provides care and protection.
 It is the foundation of social placement and social status.
 It gives emotional support and affection.

Types or Forms of Family

A family can be classified based on birth, marriage, nature of residence, ancestry, size, or nature of relations.

On the Basis of Birth

 family of orientation–the family into which a person is born and in which early socialization takes place
 family of procreation–the family that is formed through marriage and by having or adopting children.
On the Basis of Marriage
 polygynous family–a type of family consisting of one husband, and more than one wife, and all the children
born to all wives or adopted by each of them.; It is based on polygynous marriage.
 polyandrous family–a type of family consisting of one wife and more than one husband, and the children,
either born or adopted by each one of them; It is based on polyandrous marriage.
 monogamous family–the family consists of one husband and wife, including children, and is based on
monogamous marriage

On the Basis of the Nature of Residence

 family of matrilocal residence–a type of family where the wife remains in her mother’s household after
reaching maturity and brings her husband to live with her family after marriage
 family of patrilocal residence–a type of family where the husband remains in his father’s household while
his wife leaves her family to move in with him
 family of changing residence– a type of family where the family stays in the husband’s house for some
time, and moves to wife’s house, stays there for a period of time, and then moves back to the husband’s
parents or starts living in another place

On the Basis of Ancestry or Descent

 matrilineal family–a type of family where the ancestry or descent is traced through the female line or
through the mother’s side
 patrilineal family–a type of family in which the authority is carried down the male line, and descent is traced
through the male line or the father’s side

On the basis of size or structure

 nuclear or the single-unit family–a type of family consisting of a husband, a wife, and children
(unmarried), naturally-conceived or adopted; It is the nucleus of family structures. It is more or less an
autonomous unit that is not under the control of adults or elders of the family. It consists of two generations
only. The adoptation of children legally happen through an adoption process where the legal responsibilities
and privileges of being a parent or parents are transferred from the biological parents to adoptive parents.
 joint or extended family–a type of family that consists of three generations living together under the same
roof, and sharing the same kitchen or economic expenses; It consists of three nuclear families living
together. In this setup, aunts, uncles, and grandparents may live in a family of parents and their children.
 reconstituted or blended family–a type of family that is formed out of another relationship, otherwise
known as a step-family

On the Basis of the Nature of Relations

 conjugal family–a type of family made up of adults among whom sexual relationships exist; It refers to a
family system of spouses and their dependent children. The emphasis is placed on the marital relationship
that exists between spouses.
 consanguine family–a type of family where blood relation exists, or those who are consanguineal kin (e.g.
a family consisting of parents and children, or siblings)

Kinship and Household Dynamics

A household is a residential unit or dwelling that carries out economic production and consumption that coordinates
work, inheritance, child rearing, and provision of shelter. It is important to note that family and household are not one
and the same.

A household may be made up of a person, or persons, who lives in a shared space or dwelling. A household can be
a family household or a non-family household. It would mean that persons living in a household maybe related or
unrelated.
Example of a non-family household: Two friends living in the same condominium unit are considered a
household.

There are different kinds of households:

 nuclear household–a domestic group that contains one adult couple that may or may not have children,
 extended–a domestic group that contains more than one adult married couple, and
 single-person or single-parent–a domestic group that is composed of one adult person that may or may
not have children living with him or her.

Politics of Kinship
 The idea that "blood is thicker than water” and similar concepts apply to politics. Kinship is the primary
source of political support and action in small or even bigger societies.
 Kinship alliances are naturally formed and traditionally remain a power bearer that dominates Filipino
culture.
 An explanation for this phenomenon would be the family orientation of the Filipinos. For some reason, the
obligation to one's kinship group compels one to prioritize his or her family before the rest of society. This,
from time immemorial, has generated issues in power allocation in our community.
 Topics include political dynasty, padrino system, and the use of political power to build business empires or
personal gains.

Concepts of Power in Filipino Kinship Politics

Ideally, merit is the top qualification for any position of consideration, particularly in politics.Certain circumstances
resulting from the interplay of Filipino values, family, and power have influenced codes of honor on selection
processes.

Here's a list of some of Filipino values which have affected the way we make decisions and view power.

Issues Concerning the Politics of Kinship

Kinship means family, which could mean the “world” to some people. Without a doubt, we place the family first on
our list of priorities, and there is nothing wrong with that, as long as you do not put public interest at stake.
Here is a list of issues concerning the politics of kinship.

How Society is Organized

People have organized themselves into groups with common rules of living. The organization of such a group is
called society. Different institutions are found in every community, such as the family, kin relationships, childcare,
and division of work based on gender and age.

All societies, small or large, are organized around an uneven division of labor and decision-making. Present
societies are expected to provide protection, economic security, law and order, and a sense of belonging to their
members.

Societies usually adapt to changes around them, like in the environment or in technology. Most changes happen
slowly, but some significant events such as war or revolution can completely transform societies.

The Threefold Nature of Social Life

Applying Goethe’s method to social life, Rudolf Steiner thought that if we apply the phenomenological, participatory
method to human social life as a multifaceted, multilayered whole, we can distinguish three different spheres of
activity:

1. cultural–everything involving the growth and expression of the human spirit: education, art, science,
religion, journalism, and publishing
2. legal or political–involving human rights and relationships between people and organizations
3. economic–having to do with the production, distribution, and consumption of goods and services

Human society, Steiner claimed, will only flourish if these three spheres are recognized and each is organized
according to its own inherent principles, dynamics, and ideals.

Social Groups and Organizations

Sometimes, organization refers to associational groups. It includes corporations, armies, schools, and banks.
Society composes many of such organizations. A state is considered as a political organization, or school may
represent an educational organization, and so on. They are all social organizations.

Organization is a state of being or a condition in which various institutions in society are functioning by their
recognized or implied purposes (Elliott and Merrill, 1950).
Social organization or social system refers to the interdependence of parts in groups. These groups may differ in
size and nature. It makes possible the complex activities where members of a complex society participate in.

Groups within Society

What is a GROUP?

-Size -Time -Organization

A Recurrent Group is one that meets regularly. TIME

Examples: the basketball team; an annual family gathering

A Transitory Group is when several people happen to be in the same place at the same time but who may never
be together again. Their interaction is minimal. TIME

Examples: people crossing the street at the same time at the same intersection; people getting onto the
same elevator; people waiting in line at the checkout counter

A Formal Group is one that has rules and regulations, scheduled meeting times, official roles assigned to

Examples: English club; Congress; Sociology class ORGANIZATION

An Informal Group lacks the formality of the formal group. There may be unwritten rules, etc.

Examples: a group of friends; a family; commuters sharing a bus ORGANIZATION

People do not live in isolation. They live in groups. Social groups consist of two or more individuals who identify with
one another and regularly interact as a result of shared norms, values, and expectations. Being in a group entails
realizations of activities and events in one's life that help people build and define their stories, interests, and
contributions to society.

Different group categorization exists in society. Categories include primary and secondary groups, in-groups and
out-groups and reference groups.

Primary Group
First formulated by Charles Horton Cooley, the concept of a primary group is an essential unit of social organization
and social life. A primary group is characterized by personal and lasting relationships with its members.

It has been identified that relationships in a primary type of team is unconditional and not prearranged. Setting aside
family relations, members of primary groups share lots of things in common, like interests, stories, or personalities.

The best example of a primary group is the nuclear family. Relationships and attachments organized in this group
are permanent as one's identity, lifestyle, and stories are tied to this group. A group of close friends is another
example of this group.

The term 'primary' is used with these groups because they are the primary or main source of socialization and
relationships. Relationships in primary groups give us security, love, and companionship. We also learn norms and
values from our family and friends that stay with us for most of our lives.
Secondary Group
By contrast, secondary groups are formal, small or large, and usually short term. These groups are typically found
at work and school.

An example of this group is a political party organized to plan the best campaign for the election. Members of the
board meet infrequently and for only a short period. Team members may have some similar interests, but the main
purpose of the group is on the task instead of the relationships.

Classroom and work environment are other examples of a secondary group.

Sometimes, secondary groups become informal, and members of the team get to know each other well; however,
even if their friendships exist in a limited time, they will not necessarily remain close beyond.

Unlike the primary group, members play their roles in a secondary group based on arranged and conditional
contract. Members of this group need not to convene based on shared interests or personalities.
Social Groups and Organizations
Sometimes, 'organization' refers to associational groups. It includes corporations, armies, schools, and banks.
Society is composed of many such organizations. A state is considered as a political organization and school may
represent an educational organization. They are all social organizations.

Organization is a state of being or a condition in which the various institutions in society are functioning by their
recognized or implied purposes. (Elliott and Merrill, 1950)

A social organization or social system refers to the interdependence of parts in groups. These groups may differ
in size and nature. It makes possible the complex activities where members of a complex society participate in.

Groups within Society

People do not live in isolation. They live in groups. Social groups consist of two or more individuals who identify with
one another and regularly interact as a result of shared norms, values, and expectations. Being in a group entails
realizations of activities and events in one's life that help people build and define their stories, interests, and
contributions to society.

Different group categorization exists in society. Categories include primary and secondary groups, in-group and out-
group, and reference groups.

In-Group and Out-group

An in-group is an exclusive social group formed out of shared interest and identity. This is the “we” group in society
from which people’s loyalty is bestowed upon. This type of group satisfies the old saying "birds of the same feather
flock together.'' It is in this group where people feel more comfortable and secured, with no threat, intimidation or
conflict of interest. Members of this group consist of those who share common experiences or ideas in life.

Examples include friendship groups, families, and religious groups.

An out-group, on the other hand, is a social group associated with competition or opposition as its nature is
different from one’s own. This is the “they” of society, where a person is not a part of or does not belong to the
group. The formation of out-groups is the result of perceived differences.

One’s out-group includes those groups one dislikes or disregards. It is also that group where one does not feel
happy personality-, interest-, or ability-wise.

It should be noted that out-groups should not be given negative connotation as they only involve non-membership to
a certain group. After all, people are created differently. This should be celebrated in the same regard as we give to
shared interests. People should respect what others can and cannot do. That is the very purpose of recognizing the
existence of out-groups.
Issues Surrounding In-groups and Out-groups
In-groups and out-groups are formed as a result of the following:

Social groups, despite functioning actively in realizing tasks of society, draw a boundary between people in the
community. The concept of social group classification of in-groups and out-groups brings defined and perceived
differences to a different level. Lack of sense of belongingness, isolation, rivalry, tension, and threat of violence may
result from well-defined in-groups and out-groups.

In-group favoritism happens when a person favors or offers special treatment to in-group members over out-group
members. This activity may disregard merit and result to serious social situations such as corruption, crime,
and padrino system.

Out-group homogeneity is the tendency of a person to classify those people who are not in their in-group as being
similar to one another. In short, people overgeneralize and label out-groups in a negative manner.

Groups within Society

People do not live in isolation. They live in groups. Social groups consist of two or more people who identify with one
another and regularly interact as a result of shared norms, values, and expectations. Being in a group entails
realizations of activities and events in one's life that help people build and define their stories, interests, and
contributions to society.

Different group categorization exists in society. Categories include primary and secondary groups, in-groups and
out-group, and reference groups.

Reference Groups and its Normative Functions

Reference Groups are groups that serve as our standards in setting and evaluating our own behaviors and
attitudes.

When reference groups serve a purpose of setting your norms and values, these are normative reference groups.
These groups directly influence the behavior of a person, serving as a role model, standard, or base point.
Your immediate family and friends are considered a normative reference group. The way they are is the way you
are. Your mentors or celebrity idols also shape your personality. In hopes of being identified with them, people opt to
act, speak, dress, and think the way they do.

Reference Groups and its Comparative Functions

Some reference groups exist to provide people with means of comparison for behavior, style, and achievement.
Such are comparative reference groups whose norms and values serve as points of comparison for certain
behaviors.

For body figure, teenagers look up to supermodels as references. For skills in basketball, enthusiasts play by the
rules of professional basketball players from the NBA or PBA. To check whether he fares well in his exams, a
student may compare his score from that of his class's best students.

Group Influences
It is a natural response of people to socialize, build connections, and get influenced. With either good or bad
influence, our social groups or reference groups play vital roles in shaping who we are and becoming who we want
to be or what society wants us to be.

Reference groups come in different forms and classifications.

Aspirational reference groups refers to people or groups of people with whom we want to be compared with.
Product advertisers and celebrities like athletes, movie stars, or talk show hosts are fine examples of this reference
group. People think that by supporting their favorite celebrity, they become associated with them.

Associative reference groups refer to groups where we belong and take part in. These people include our
neighbors, coworkers, club members, or church members. People have a tendency to confine with what is on trend
in their immediate community.

Dissociative reference groups refers to groups that people have no interest in being associated with. This group
of people includes those with whom we share conflicts in interest, attitude, or behavior.

Social Groups and Organizations

Sometimes, social organizations refer to associational groups. It includes corporations, armies, schools, and banks.
The society is composed of many such organizations. A state is considered as a political organization and a school
may represent an educational organization. They are all social organizations.

Organization is a state of being or a condition in which the various institutions in society are functioning by their
recognized or implied purposes. (Elliott and Merrill, 1950)

Social organization or social system refers to the interdependence of parts in groups. These groups may differ in
size and nature. It makes possible the complex activities where members of a complex society participate in.

Groups Within Society and the Rise of Social Networks

A social group is a team of two or more individuals that are dependent on one another. Its organization rests on the
purpose of working and achieving the goals of society. Humans are social beings whoa are constantly longing and
needing association or support.

Different group categorization exists in the society. Categories include primary and secondary groups, in-group and
out-group, and reference groups.

The existence of different social organizations in society and the connections or ties that bind them together give
rise to a social network.
Social Networks
A social network is a social structure comprised of individuals joined by a certain pattern of links or relations. Social
networks are indicative of a person or an organization's relationships as either casual and informal or personal and
intimate. This is often regarded as individuals' basic tool to connect to society.

Designed to connect people and make the world seem borderless, social media websites
like Twitter or Facebook are social networks. In a click, updates about an individual may reach his friends and
friends of friends as well. People listed in your phone book are your social networks. Membership to organizations or
companies guarantees a social network.

Ties and Nodes

As mentioned, social networks are composed of individuals and the connections or links that bind them together.
These components of a network are called 'nodes' and 'ties.'

The person or organization playing a part in a network is known as a node. On the other hand, ties are the links or
connections that bind individuals or organizations together.

They may be weak or strong. Measured by strength, strong ties are the result of intimate and personal links.
Meanwhile, weak ties are connections caused by informal, casual, and business-like relationships.

The Importance of Social Networks

Through networks, social linkages or connections are formed. It is important to note that these networks serve a role
in the attainment of the goals of society. Through networks, people get connected, get updated, and become aware.

Networks are media for the spread and exchange of ideas. News awareness, information relay, and rumors are
good examples. Some people also use their networks to obtain a position in a company, to make a business
successful, or to earn a living. Social networks undoubtedly serve as social support and provide people with
information or guidance in times of need.

Social and Political Structures

Social and political structures are both constructs formed as a result of large scale ties and relations in society.

Social structure, in a general sense, refers to patterned institutions or groups in society where people work, act,
and live together.

Examples: Social class and social institutions like the government and legal community, LGBT community, and
professional community

The political structure, on the other hand, is used to call on the institutions and political entity organized in
agreement with regulations, laws, and norms of society or of the entity itself. A society based on political structure
may follow totalitarianism, authoritarianism, or democracy.

The Need for Political Organizations

The need for social order, public affairs and functions, and conflict resolution are perennial or inevitable. In this
premise, the foundation goals of political organizations are required.

Political organizations are entities in a society formed for administrative or political functions. They refer to the
scheme or design of power and authority in society. Political organizations define the scope and limits of power.
Society, to achieve and maintain its goals and functions, needs an authority figure to set social control and lead
people. Issues like allocation of social and political roles, the exercise of political power and authority, and
resolutions for conflict and clash are among the recurring problems every society faces.

The questions rest on who takes the lead in addressing such problems. On this ground lies the need for political
organizations. Serving as the authority, they set rules and roles and direct actions to take.

Special interests of a particular group may also be addressed through political organizations such as labor unions,
political parties, interest or advocacy groups.

 Labor unions collaborate or negotiate with the company administration to raise employee concerns
regarding salary increase, benefits, and labor rights.
 Political parties are formed for staging interest in the government seat.
 Advocacy and interest groups are designed for campaigning the rights, privileges, and concerns of a
particular group of people in society. Such group of people may not be represented in government

Types of Political Organization

There are four recognized types of political organizations. They are bands, tribes, chiefdoms, and states.

Band
The band is the most traditional and smallest type of political organization. Familial ties connect a band. Politically
independent, a band usually does not recognize the formal government. There are no written codes or laws. There
is no organized group of leaders. This is the result of their tendency and nature of moving from one place to another
in search of food or shelter.

Tribes
Tribes are traditional societies comprised of people or group of people connected by social, religious, ancestral, or
cultural ties. Bigger than a band, tribes are usually settled in one place and do not rely on hunting and gathering but
on agriculture for subsistence. Just like bands, tribes do not observe formal governments.

Bands and tribes are egalitarian societies. This means that they see people of the same age and gender as equals.
For instructions and decision, they rely on group consensus.

Chiefdom
Chiefdom, unlike tribal societies, is a permanent and formal government. Chiefdoms are formal political
organizations in a traditional society based on kinship or the leadership of selected families.

State
A state is a formal political organization in a modern or industrial society regarded as an organized community
under a government. Characteristics of a state include owning a certain territory, having a particular group of people
to lead it, a group of people to take administrative roles, and freedom from external or foreign control.

Social and Political Structures

Social and political structures are both constructs formed as a result of large-scale ties and relations in society.

Social structure, in a general sense, refers to patterned institutions or groups in society where people work, act,
and live together.

Examples: Social class and social institutions like government and legal community, LGBT community, and
professional community
The political structure, on the other hand, are institutions and political entities organized in agreement with
regulations, laws, and norms of the society or of the entities themselves. A society based on the political structure
may follow totalitarianism, authoritarianism, or democracy.

Power
According to Thomas Hobbes, power is a natural inclination that is sought continuously by individuals. In sociology
and politics, power is the ability to get others to do things even when they might not want to. Put into action either
through coercion or persuasion, power, in simpler terms, is the ability 'to do.' Power may be exercised through
coercion or the use of sanctions, punishment, or threat.

The presence of unlikely consequences may force people to do things. Sometimes, the use of coercion is not
necessary to get people to work. People may work freely and willingly if persuasion, reason, and incentives or
positive reinforcements are presented. It is noteworthy that society works based on power. Ideally, though, a society
imposing its power without the use of coercion is most efficient.

States have power because they can make laws. The police enforces laws by the use of force. If you disobey the
law, you will be fined or jailed. However, we want to be able to make a difference between cases in which it is right
that the state has power, and cases in which it is objectionable or wrong in some way. To make this distinction, the
concepts of authority and legitimacy is needed.

Authority
Authority is the right to command. Authority is observed when an individual has a command to make a person do
things. Such act is a response to that person’s perceived power. This person can be your boss, your superiors, or
those who hold high positions in society.

Aside from what has been mentioned above, authority is shown when a person is an expert in a particular matter.
We ask engineers to make our buildings and structures stand firm. We ask specialists for some health concerns. We
ask teachers for learning strategies.

To clarify the concept, take this example. Public officials are elected by the people and are bestowed with rights to
rule and exercise administrative roles based on existing societal laws. Professionals, on the other hand, gain
authority after effectively learning through years of practice in their respective fields. Authority is more than power.
Authority is guaranteed by legitimacy or in a formal manner. Authority is the sum of power and legitimacy.

Having all these things presented, authority is the quality of a person, institution, rule, or order. It is also the right or
control over giving commands, making verdicts, or enforcing actions.

Legitimacy
Legitimacy gives form to authority. Together with power, legitimacy dresses authority. It is said to be a symbol or
representation–like professionals having their licenses, employees wearing their uniforms, and laws being written as
formal documents.

In the most basic sense, a state is said to be legitimate if it exists and operates according to the law. If a government
is legitimate, then in some way, the fact that it has power is justified. If so, then we can argue that we ought to obey
it. If power is objectionable, then we do not tend to have an obligation to follow it.

Legitimacy is a belief that a rule, institution, or leader has the right to govern. Legitimacy is the force that makes an
action of a governing body necessary.

Three Types of Authority

According to the sociologist Max Weber, there is a category as to how authority is legitimated as a belief system.
These are traditional, charismatic, and rational.
Economic Institutions
The term 'economic institutions' has a broad meaning. Let us find out.

The term 'economic institutions' refers to:

 a network of commercial organizations that determine how goods and services are produced, generated,
distributed, and purchased

Examples: producers, manufacturers, retailers, wholesalers, buyers

 the particular agencies or foundations devoted to the gathering or studying of economic data, or authorized
with the job of supplying goods and services that are necessary to the economy of a country

Examples: the Philippine Bureau of Internal Revenue, the U.S. Federal Reserve, the National Bureau of
Economic Research

 the popular and thriving arrangements and structures that are part of culture or society

Examples: competitive markets, the banking system, a system of property rights

Reciprocity
What is reciprocity?

In Sociology
It is defined as the a system of voluntary exchange among individuals based on the understanding that the giving of
favor by one will be reciprocated in the future either to the giver or to someone else.

Example:

Filipinos practice utang na loob. This act is part of our culture. When a person shows you an act of kindness, it is a
must for Filipinos to return the favor.

In Economics
It is defined as an exchange of equal advantages.

Example:

Japan and Philippines made an economic agreement to remove traveling restrictions to flourish the tourism of both
countries.

Types of Reciprocity
What are the types of reciprocity?
Generalized
Generalized reciprocity is giving something without the anticipation of an instant return.

Example:

When a friend gave you a birthday gift, it is not expected that you will also give that friend a gift in return on the
same day, although it is anticipated that you will give him a gift or token sometime in the future or when his birthday
comes.

Balanced
Balanced reciprocity is giving out of something with the anticipation of immediate return.

Example:

When you get something from the store and walks out without paying for the goods, you will be stopped by shop
employees because you have not reciprocated with money the goods that you picked from the store.

Negative
Negative reciprocity occurs when the exchange of something already involves taking advantage of someone or the
situation. Most of the time, this type of exchange involves trickery, intimidation, or hard bargaining.

Example:

Province X has no source of electricity for a long time. X Electric Company made an agreement with the officials of
the province to provide them with power supply. In exchange, the whole area should not entertain any other electric
company to offer the same services to them.

Economic Institutions, Reciprocity, and the Impacts on the

Global Community
We have learned in Chapter 2 that economic institutions involve activities such as producing, generating,
distributing, and purchasing goods and services. These activities have an impact on the global community.

See the illustration below.

Legends:

 blue: economic institutions

 red: activities of economic institutions
 yellow: global community
The activities with economic institutions play vital roles in shaping and maintaining the stability of world community.
If one system fails to do its activity, there will be an imbalance that will highly affect the whole community.

Practical Application

Reciprocity always necessitates adequacy of responses but does not mean that it should be of the same amount or
volume. More than economic gain, reciprocity is more of a social benefit. We have to make use of this principle to
bring us closer to our neighbors, friends, family, and loved ones.

Economic Institutions
The term 'economic institutions' refers to:

 a network of commercial organizations that determine how goods and services are produced, generated,
distributed, and purchased

Examples: producers, manufacturers, retailers, wholesalers, buyers

 the particular agencies or foundations devoted to the gathering or studying of economic data, or authorized
with the job of supplying goods and services that are necessary to the economy of a country

Examples: the Philippine Bureau of Internal Revenue, the U.S. Federal Reserve, the National Bureau of
Economic Research

 the popular and thriving arrangements and structures that are part of culture or society

Examples: competitive markets, the banking system, a system of property rights

The Functions of Economic Institutions

The economy of a particular country like the Philippines is composed of different institutions that play a significant
role in providing the needs of the people. These institutions perform economic activities that start from production to
distribution of goods and services to the people.

Here are some of the functions of economic institutions in society:

 Enhance development through financial services

 Provide business opportunity to people by financing and loans
 Fund research projects aimed at improving the lives of the individuals in the society

Transfers
In economics, transfer or transfer payment is a redistribution of income or resources in the market system. It
refers to payments or transactions where there is no value added to the economy. There is no additional production
of goods and services but just a transfer of money from private hands to government.

Examples:

 Taxes
 Social security
 Private pension benefits
 Housing
 Health care

Transfer payments can originate from either government or business sources. Business transfer payments include
corporate gifts to non-profit institutions, payments for personal injury, and taxes paid by domestic corporations to
foreign governments. Far more important, both, in terms and policy significance, are transfer payments originating
from government sources.

How Transfers Work in the Government

The government as an economic institution also provides commercial goods to the people in the form of public
services and transfer payments.

In the Philippines, the government is allocating a huge amount of money to finance different programs like
education, infrastructures, health, and defense.

Among the government agencies that received the highest allocations are:

 the Department of Education (DepEd) with PhP 411.905 billion,

 the Department of Public Works and Highways (DPWH) with PhP 384.287 billion, and
 the Department of Interior and Local Government (DILG) with Php 124.229 billion

In the United States, transfers are payments made to individuals by the federal government through different social
benefit programs.

In Canada, transfers are payments made to all provinces and territories by the federal government.

Economic Institutions, Transfers, and the Impact on the Global

Economy
Transfer as an activity of every economic institution, such as the industry, finance, and services, distribute part of
their income or profit to provide essential services and assistance to some segments of society, especially the
underprivileged, to help uplift their living conditions without expecting anything in return.

To help you analyze statement above, look at the diagram shown below:
In the circular flow of the economy, households and firms pay taxes to the government. In return, the government
distributes transfers in the form of services to the household and subsidies to the firms.

The activities of the household, markets, businesses, government, or financial institutions as economic systems
have a great impact on the global economy because they provide goods and services needed by people not only of
a particular country but also by the world community. The stability of a country's economy has a direct impact on the
global community for it determines its ability to provide the needs of its people. It also contributes to the stability of
the world.

Economic Institutions
The term 'economic institutions' refers to:

 a network of commercial organizations that determine how goods and services are produced, generated,
distributed, and purchased

Examples: producers, manufacturers, retailers, wholesalers, buyers

 the particular agencies or foundations devoted to the gathering or studying of economic data, or authorized
with the job of supplying goods and services that are necessary to the economy of a country

Examples: the Philippine Bureau of Internal Revenue, the U.S. Federal Reserve, the National Bureau of
Economic Research

 the popular and thriving arrangements and structures that are part of culture or society

Examples: competitive markets, the banking system, a system of property rights

Redistribution
What is redistribution? Why is it an important activity of societies? How do you compare redistribution from
reciprocity?

In relation to Sociology
Redistribution is an everyday activity of societies. Members of the society contribute by giving their goods that
would be collected by the head of the community followed by a distribution of the goods among the members.

Example:

A) Church tithes
The church acts as the central organization that pools the goods donated by its members in the form of tithes or
donations. The church manages these tithes and donations for the maintenance of the church itself and its projects
and programs in which most of the time, its members are the recipients. By that process, the tithes or donations
given by the members are being redistributed to them, especially the less fortunate members.

B) Potlatch

It is a ceremonial distribution of property and gifts celebrated by most Pacific Northwest tribes. In every celebration,
each person invited to a potlatch receives a gift. Ceremonial formalities were observed in the distribution of gifts or
goods by the donor according to the social rank or status of the recipients.

Potlatch in Relation to Economics

Traditionally, the potlatch is the economic system of the natives of South America. Today, the potlatch is still evident
in our economic system. How?

Example:

In our society today there are rival companies. Let us consider these companies as the rival groups of Native
Americans. Company A releases one product to the market; the Company B will try to surpass that product by
releasing their product better than the product of the Company A.

In Relation to Economics
Redistribution refers to the collection of goods and services of people and groups to be given by a central authority
for allocation.

Example:
When the government collects taxes from its population, the government becomes the centralized authority where
all taxes are pooled and managed. The taxes that were pooled will be returned to the people in the form of social
services, welfare benefits, infrastructures, and others which the government will spearhead.

In Relation to Politics
Redistribution is the process by which electoral districts are added, removed, or changed. This process is a form of
boundary delimitation that changes electoral district boundaries, usually in response to census results. In democratic
governments, redistribution is required by law or constitution.

Example: In the United States, redistribution happens after each ten-year census. The state legislature approves
most states' legislative district redistributions. The highest court rulings require that congressional districts have
roughly equal populations.

The table shows a comparison between redistribution and reciprocity.

Economic Institutions, Redistribution, and their Impacts on the

Global Community
As we have learned in Chapter 3, redistribution refers to the collection of goods and services of people and groups
to be given by a central authority for allocation. Both producers and consumers are economic institutions in which
the government or central authority collects taxes from them and allocates these funds for projects which are also
for the use of economic institutions. If one failed to do his function, there would be dysfunction and economic
imbalance in society.

Redistribution in the Family or Community

Redistribution is evident in our society. Family, as the smallest unit of society, performs simple redistribution. The
mother or father, as the head of the household, collects a part of his or her children’s income and allocates it to food
and pending bills. This serves as the basis for sustained community efforts under a political leader.

Market
A market is a place or medium where buyers and sellers interact to transact economic goods and services. The
meaning of market is not limited to a certain place, location, or geographic area; rather, it focuses on people who are
willing and capable of buying or selling goods and services.

In a capitalist economy, markets answer the three basic economic problems of: what to produce, how to produce,
and for whom to produce.

Market Structures
Market structure is the classification of a market with regard to key characteristics, such as number of sellers and
buyers, entry barriers to the market, the control and determinant of pricing, and types of products in the market.

 A pure competition market is a market structure characterized by a large number of sellers and buyers,
homogenous products, and complete freedom of entry and exit of market players.
 A monopoly is a market structure characterized by a single seller of a well-defined product for which there
is no available substitute and high barriers of entry of other market players. The seller has complete control
of the pricing of goods and services.
 A monopolistic competition is a market structure characterized by a large number of independent sellers,
each producing a differentiated product in the market with a low barrier to entry of other players.
 An oligopoly is a market in which only few sellers comprise the entire industry with a relatively larger
number of buyers. Sellers, therefore, have the power over the price of products.
 A monopsony is a market in which there is only one buyer.

Market Transactions
A market transaction is the exchange of goods and services through a market where buyers and sellers agree on
the price and quantity of goods and services to be bought and sold in a specific place and time.

Market transactions taking place in the economy could be a tool in:

 measuring the total output of the economy or the Gross Domestic Product (GDP) of the country thereby
becoming one indicator of growth and development of a society, and
  providing the basic data that are used by economic planners and forecasters.

Types of Markets
There are different types of markets. Each one has unique characteristics and functions.

Physical Markets
This is a set up where buyers can physically meet the sellers and purchase the desired merchandise from them in
exchange for money.

Examples: shopping malls, department stores, retail stores

Non-Physical Markets or Virtual Markets

In such markets, buyers purchase goods and services through the internet. The buyers and sellers do not meet or
interact physically, but transact online instead.

Examples: Rediff shopping, eBay, Amazon

Auction Market
In an auction market, the seller sells his or her goods to the highest bidder.

Market for Intermediate Goods

Such markets sell raw materials (goods) required for the final production of other goods.

Black Market
This is a setup where illegal goods like drugs and weapons are sold.

Knowledge Market
This is a setup that deals with the exchange of information and knowledge-based products.

Financial Market
This market deals with the exchange of liquid assets (money). Financial markets can be further categorized into the
following types:

 stock market–a form of market where sellers and buyers exchange shares
 bond market–a marketplace where buyers and sellers are engaged in the exchange of debt securities,
usually in the form of bonds.
 foreign exchange market–a market where parties are involved in the trading of currency; In this market,
also called currency market, one party exchanges one country’s currency with an equivalent quantity of
another.
 predictive market–a setup where the exchange of good or service takes place for future use