Chapter - 4
Market as a Social Institution
️ Market :-
A place where goods are bought and sold . Outside there is not only an economic institution but also a social institution.
️ Weekly Market :-
Weekly markets are also held at some places in the cities which are engaged once a week . From where consumers buy their daily use items like vegetables, fruits etc.
️ Markets in rural areas :-
Markets are decorated in the form of haats and fairs even in rural areas. From where the villagers buy their necessities.
️ Capitalism economy according to Adam Smith :-
Capitalism economy is self-automated by profit and it works well when every individual buyer and seller makes rational decisions which are in their best interest. Smith supported open trade.
️ Invisible Hand :-
In the market system, every person thinks about increasing his profit. Whatever he does while doing so is in the interest of the society itself. Therefore, some invisible power is working in the social interest, which is defined as an invisible hand.
️ Jajmani system :-
The meaning of Jajmani system is to work with the spirit of service, as in the old times, most of the younger people used to serve the elders, in which the wages were negligible.
️ Free Market :-
It should be free from all kinds of rules whether it is controlled by the state or any other authority.
Free market is called laissez faire in French proverb. The meaning of this proverb is 'Leave it alone.
️ Market as a social institution :-
Sociologists consider the market to be an institution which is created by a particular cultural method, the control or organization of the markets is often done by particular social groups or classes. Such as weekly, tribal haat, traditional business community.
️ Tribal Weekly Market :-
Collects the people of the surrounding village who come to sell their agricultural produce or product, they come to buy other goods which are not available in the village.
In these markets, moneylenders, clowns, astrologers gossip and people come. In hilly and forested areas where settlement is remote, roads and communication are also dilapidated and the economy is also relatively underdeveloped.
In this way, the weekly market becomes a major institution of social interaction along with the exchange of products. Local people exchange goods among themselves. The main reason for going to the Haat is social where he can meet his relatives, the young men of the house can fix the marriage of the boys and girls, they can gossip.
️ Markets from the study of Alfred Gayle :-
^ Alfred Gayle has specifically studied tribal society. He studied Dhorai village in Bastar district of Chhattisgarh. The weekly market scene shows social relations. To sit in the market means to set up a shop. The order of places is in such a way that their social stratification, status and market system are clearly known.
According to him the importance of market is not limited to its economic activities. It symbolizes the social relations of the hierarchical inter-groups of that area.
Market and trading system in Colonial India :-
Major economic changes took place in India during colonialism. Historical research shows that the monetization of the Indian economy existed even before colonialism. Various types of non-market exchange system like jajmani system existed in many villages. The capitalist system had started taking its roots.
️ Pre-colonial and colonial market system :-
India was the main manufacturer and exporter of handloom fabrics. Traditional trading communities and castes had their own credit and banking systems. Its main instrument is hudi or bill of exchange. Example – Nakrattar of Tamil Nadu.
Traditional business community of India: -
Vaishyas, Parsis, Sindhis, Bahras, Jains etc. Trade is mostly between caste and relatives.
Colonialism and the emergence of new markets :-
The entry of colonialism in India caused great upheaval in the economy which caused the scattering of production, trade and agriculture.
Complete destruction of handloom industry The arrival of cheap machine-made clothes from England in large quantities in the Indian markets destroyed the handloom industry. India's integration with the world capitalist economy had begun. India became a major consumer of raw materials and agricultural products.
The expansion of the market economy led to the emergence of new business groups who did not miss out on business opportunities. For example - Marwari community.
The Marwaris are represented by well-known industrial houses such as the Birla family. It was during the colonial period that the Marwaris became a successful trading community. He took advantage of all the opportunities. Even today Marwaris have the largest share in the industry than any other community in India.
️ Capitalism: as a social system :-
According to Kalmarx:- Economy is not made of things but of relationships between people. Workers earn wages by selling their labor power in the market.
- (a) Method of production → Formation of relations → Formation of class.
- (b) Capitalism → Capitalist → Labor
वस्तु Merchandising: -
Earlier, no commodity was sold or bought in the markets, but now it can be bought and sold. Its called commercialization. Such as labor and skill, kidney and other human organs.
️ Consumption :-
According to his social, economic or culture, the consumer can buy or display some special goods and advertisements are also used.
️ Symbol of prestige :-
The type of goods that the consumer buys for his food, drink, wear, living etc., his financial condition is known, this is called a symbol of prestige. For example, cellphone, new model car etc.
️ Globalization :-
The integration of the country's economy with the world economy is called globalization. The reasons for this are – economic, social, cultural, technology, communication, due to which the distances have reduced and integration has taken place.
️ Benefits of Globalization :-
The whole world has turned into a global village. Nowadays the practice of virtual market has increased for buying and selling of goods and services.
Virtual market refers to the purchase of goods and services through the Internet, web sites, the buyer and seller are not directly present in such a market. The stock market is an example of this.
Today, India is connected to the global economy through call centers such as software services industry and business process outsourcing industry.
A call center is a centralized place where consumers get information about various services and products.
️ Liberalization :-
The process in which privatization of government departments, reduction of government interference in capital, trade and labor, reduction in import duty of foreign goods and allowing foreign companies to set up industries in India, etc., is called liberalization.
Benefits :-
- Availability of foreign goods.
- Increase in foreign investment.
- Economic Development .
- Increase employment.
Disadvantages :-
- Indian industries are not able to compete with foreign companies like cars, electronic goods etc.
- Unemployment may also increase.
️ Support Price :-
The government ensures a fair price (minimum) for the produce of the farmers, which is called the support price.
️ Subsidy :-
The assistance given by the government is called subsidy. To give it to the farmers, reducing the price of fertilizers, diesel and middle, LPG. Electricity etc.
