The document discusses the relationship between economy and society. It states that economy is shaped by cultural patterns and greatly influences social behaviors, norms, and relationships. There is an interrelationship where the economic system and social system affect each other. Understanding human economic activities requires considering the influencing society and culture. The sociology of the economy studies how economic institutions impact social organizations and social change.

2. What is the Place of the economy in the Social Order?
-Economy is the actual organization and utilization of
natural and human resources by a given society, at a
given time in accordance with their cultural patterns.
The significance to and important implications on
the society and culture:
-we find that human economic activities greatly influence habits, skills,
knowledge, expectation, motivation, aspiration and ideology.
-economic behavior affects social norms, values and personal relationships
within society.
-There is then, an interrelationship between people’s economic activity and
social behavior. Each affects the other.
-to understand human economic life, one has to consider the society and
culture that influence it.
-to understand social organization, we must analyze society’s various
considerations and contexts.

3. -The sociology of economy
studies relations of production,
processing, distribution and
consumption of the material
goods and the influence of
economic institutions on social
organizations and social change.

4. The Social Structure of Economy
Econo
mic
Syste
m
-In subsistence
economies, the family is
the center of the
economic activities and is
simultaneously the
production, processing,
and distribution unit.
-Mechanized economies
employ, to a large extent
and degree, mechanized
power for the production,
processing and
distribution of economic
goods.
-agriculture dominates
the economy of an
agrarian economy;
whereas in an industrial
economy,
manufacturing, trade,
and commerce and
services dominate.
-a great part of natural
human resources are
untapped.
-A high degree of
mechanization,
industrialization, urbanization.
Automation and a high level
of living exist in a highly
CAPITALISM
-Enables a person, through
free enterprise, to keep the
products of one’s efforts to
oneself with a minimum of
state control.
COMMUNISM
-Every person, through
governmental collective
ownership and control of
facilities for production,
processing, distribution and
consumption, shares in the
goods produced by the
society.

5. Classifying economies along these
continua have brought about the
development of certain scales. These
scales may involve the use of correlated
psycho-socio-economic-cultural factors :
The number and types of
occupation that the people engage
in
The use of money as a medium of exchange.
The extent and degree of
application of mechanized power to
economic activities.
The per capita or per family income and expenditThe quantity and quality of material possessions
The nature of borrowing and/or credit
managements and/or market
transactions.
The prevailing social norms
and value orientation on
property, work, exchange,
exchange, leisure and others.

6. Social Subsystems of Economy
-Refers to the network of “rights and
duties of one person or group as against all
other persons and groups with respect to
some scarce good.”
-Property may be held by individuals,
by families, or by groups. Tenure of
property may be by leasehold or by
ownership. Owned by individuals or small
groups, its ownership and control are
generally fused; in the case of property
owned by large corporations, the two
become separate.
-Private and Public. Private property is
comparatively free from direct state controls
and is generally transferred from the owners
to their duly designated heirs. Public
property is subject to governmental
restraints and is placed under the control of
the different social subsystems of the
government.
-In the Philippines, land ownership, the
foundation of wealth, prestige, power and
influence, is heavily concentrated in a few
families.
-The more type of ownership is
single proprietorship wherein the owners
are the managers.
-Concentration ownership, control,
transfer and use of property results in
paternalistic-employer and subservient-
employee relationships. It has tended to
produce unequal distribution of family
income/ per capita, poverty, malnutrition,
poor health, low productivity, low savings
and investments, social mobility and
inadequate housing, clothing, medicine

7. -The agrarian reform program
was acclaimed by pres. Corazon
Aquino as the center piece of her
administration.
-E.O. 229 / Comprehensive
Agrarian Reform Program (CARP). In
line with a Constitutional mandate to
institute an agrarian reform program
founded on the right farmers and
regular farm workers who are landless
to own directly or collectively the lands
they till, or in the case of other farm
workers, to receive a just share of the
-Congress passed R.A 6657
/ Comprehensive Agrarian Reform
Law (CARL) . Include all public
and private lands, regardless of
tenurial arrangement and
commodity produced. Other lands
of the public domain which are
suited for agricultural purposes
are to be included.
-Some farmers claim that the
quality of their life and welfare
-Peasant and cause-oriented group
claim that the CARL is full of loopholes and
favor land owners, it was manipulated to fit
in an export –oriented foreign dependent
agricultural economy in line with agri-
business interest. Scams at the sale of lands
for distribution have also affected the
program.
-The Ramos administration is also
accelerating the implementation of the
CARP in order to meet the original deadline
mandated by law to accomplish the
distribution by 1998.
-July 26, 1993, Pres. Fidel V. Ramos

8. -Consists of the
knowledge, skills, and
attitudes necessary to
convert available resources
into objects people need
and want.
-Acc. To Alvin Toffler,
technology feeds on itself,
it creates the need for more
technology.
-Technological advances consists of three fa
Creative, reasonable idea
Practical application
diffusion through society
-Robert Blauner views technology as
the major factor which influences the
behavior and attitudes of workers.
-Significant characteristic of
population that affect technology:
(1)The rate of its growth
(2) the directions of its mobility
(3) the density of pressure of its distributions
(4) its supply of technically skilled workers, technicians
(5) its value orientation and beliefs with
regard to the acceptance or rejection of
technological innovations.
-Important aspects of the social
organization in relation to technology:
(1)The size and homogeneity of the populatio
(2) the structure of the leadership and
followership and their corresponding
personality characteristics
(3) the types of social interaction involved.
-Criteria on which to base the extent and
possibilities of technological development:
(1)Accumulated body of technological knowled
(2) technical skills
(3) institutional structures and value orientation
(4) population growth

9. -Represents the differentiation of
functions - institutional and economic
roles – performed by the individual
member and small groups of the
society.
-Traditional societies, non-
agricultural work was based on a
mastery of a craft which entailed
long periods of apprenticeship.
-In modern, industrialized societies,
-Durkheim states that a society
continues to industrialize, the
“mechanical solidarity” of simple
subsistence economies largely based
upon the homogeneity of its members
develop into the “organic solidarity” of
complex mechanized economies
greatly depend upon more refined
tools, more complex machines and
the coordination and synchronization
of individual and group contributions

10. Total Population 15 years and
over
38, 003
Labor force employed 24, 491
Employed 22, 556
Employed working less than 40
hours a week
7, 039
Employed wanting more hours
of work (working less than 40
hours a week)
2, 754
Unemployed 1, 933
Philippine Labor Status 1990
Source: NSO Monthly Bulletin of Statistics, Integrated survey of households. Manila,
National Statistics Office, August, 1990.
Labor force participation rate
(%)
64.4
Employment rate (%) 92.1
Unemployment rate (%) 7.9
Visible Unemployment Rate
(%)
As per cent of labor force
11.24
As per cent of employed 12.4
It shows the employment status of those in
the labor force. However, there is high rate
of underemployment. This means that the
take home pay of the underemployed are
less than those of the fully employed. Labor
participation rate defined as the percentage
of the total persons 15 years and over in the
labor force was 64.4 percent.

11. Employment by Sector 1988-1990 (Thousands)
1988
(000)
Per Cent to
Total
1990
(000)
Per Cent to
Total
All Industries 21, 205 100.00 22, 558 100.00
Agricultural,
fishery,
forestry
9, 969 47.00 10, 160 45.04
Mining,
quarrying
160 .75 136 .6
Manufacturing 2, 183 10.3 2, 191 9.7
Electricity, gas,
water
55 .45 88 .4
Construction 830 3.9 979 4.3
Wholesale,
retail trade
2, 871 13.1 3, 159 14.0Source: NSO Monthly Bulletin Statistics, August 1990. Manila: National Statistics Office.
Transportatio
n, storage
communicati
on
1, 015 4.8 1, 135 5
Financing,
insurances,
real state,
business
390 1.8 443 1.96
Services,
community,
social,
personal
3, 702 17.5 4, 218 18.7
Industry not
elsewhere
classified
1 .005 43 .2
Table 3 By industry, agriculture,
fishery and forestry accounted for
45.04 percent of the total employed
persons.

12. Table 4. Labor Force Employed, Partially Employed and Unemployed by
Region October 1990
Labor Force Employed Partially
Employed
Unemployed
Region I
Ilocos
1, 364 1, 262 (92.5%) 401 (31.8%) 102 (7.5%)
Region II
Cagayan Valley
999 953 (95.4%) 318 (33%) 46 (4/6%)
Region III
Central Luzon
2, 407 2, 175 (90.3%) 450 (20.9%) 232 (9.6%)
Region IV
Southern Luzon
3, 212 2, 931 (91.2%) 914 (29.13%) 282 (8.8%)
Region V
Bicol
1, 756 1, 657 (94.4%) 887 (35.4%) 99 (5.6%)
Region VI
Western
Visayas
2, 139 2, 054 (96%) 788 (38.4%) 85 (3.9%)
Region VII
Central Visayas
1, 875 1, 737 (92.7%) 574 (33%) 138 (7%)
Region VIII
Eastern Visayas
1, 442 1, 357 (94.1%) 590 (43.5%) 85 (5.9%)
Region IX
Western
Mindanao
1, 145 1, 075 (93.9%) 322 (30%) 70 (6.1%)
Region X
Northern
Mindanao
1, 538 1, 417 (92.1%) 553 (39%) 121 (7.9%)
Region XI
Southern
Mindanao
1,783 1, 644 (92.2%) 556 (39%) 139 (7.8%)
Region XII
Central
Mindanao
1, 129 1, 068 (94.5%) 501 (47%) 61 (5.4%)
NCR 3, 175 2, 722 (85.7%) 268 (9.8%) 453 (14.3%)
CAR 526 506 (62%) 117 (33%) 20 (3.8%)
Table 4 Shows that Region VI, Western
Visayas has the highest employment rate of
96 percent; and the National Capital Region
(NCR) has the highest rate of 14.3 percent.
Generally, Filipinos seek overseas
employment because of low real wages and
little job opportunities in the country.

13. Employed by Class of Worker, 1990
Number Per Cent
All class of workers 22, 558 100.00
Work for Private
Household/
Establishment/ Family
Operated Activity
8, 095 80.7
Work for Government/
Government Corporation
1, 935 19.1
Wage and Salary Workers 10, 331 45.8
Own Account Workers 8, 608 38. 1
Self-Employed/Employer
Unpaid Family Workers 3, 616 16

14. Deployed Overseas Contract Workers (OCW)
1992 1991
Sea based 136, 806 125, 759
Land based 549, 651 489, 260
Total 686, 457 615, 019

16. over 3 million Filipinos living and working overseas in 130
countries around the world. The export of human
resources is strongly encouraged by the Philippine
government, under the aegis of the Department of Labor
and Employment, which in effects serves as the country’s
biggest overseas job recruiter. OCWs remit an estimated
$1.5 – 2 billion in annual foreign exchange through the
banking system.
Labor export is now one of the Philippines’
foremost source of foreign exchange. Former President
Marcos ‘ Presidential Decree 442 in 1972 created two
unique government bodies, the Overseas Employment
and Development Board (OEDB) and the National
Seamen Board (NSB). Under the Aquino administration,
these two bodies were joined to form the present
Philippine Overseas Employment Administration (POEA).
POEA, an agency under the Department of Labor and
Employment, is assigned the task of supervision,

17. Over the last 6 years alone, Filipino overseas
workers pumped close to $6 billion into the local
economy. According to a study by the Center for
Research and Communications, the lack of jobs,
deteriorating wages, and soaring inflation,
combined with the estimated 2.7 million
persons, 15 years and above, will inevitably
make the Philippine unemployment situation
worse than it already is and drive workers to
seek greener pastures abroad.
Apart from personal motivations like
“independence” and “specialized” training,” the
primary reason that lures Filipinos to work
abroad is still the more lucrative pay.

19. Economists call it the “informal sector.” It is
otherwise known as the “underground” or “black
economy” or, the “people’s economy.” It is essentially
the business of surviving. For example, there are the
office and school bazaars. Upper income groups
have taken to patronizing “tiange” or flea markets that
sell imported goods and exported overruns at
cutthroat prices. Then the perennial shop and stop –
the street traffic market. Also, there are those driven
to extremes – the beggars, scavengers and the petty
thieves.
This free wheeling economy is abetted by the
tendency of big business and multinationals to cater
only to the needs and demands of upper income
groups. It is what has kept the Filipino’s head barely
above the economic quagmire – it is what has, so far,
stemmed the effects of conditions that have caused
social upheavals in other societies.

21. Sociology of work organization is concerned
with the application of sociological principles to the
study of economic structures, changes in these
structures and the values and ideologies related to
them. The sociology of work is associated with
organizational problems such as workers morale,
productivity, absenteeism, and turnover rates.
The cabo system operates within stevedoring
companies which handle the cargo of shipping
companies. A stevedoring union within the
stevedoring company holds a contract with it (the
company) the exclusive right to supply the company
with workers.
The cabo gets the highest pay. Evening rates
are higher than the day rates. The union deducts 5
percent as union dues, P0.25 for “death relief” an
P1.00 for meals. The cabo deducts about two or
three pesos from each of his workers wages as his
share. This is called “pakikisama” or smooth-inter-

22. The stevedore have developed systems
called “tumbukan”, “pitik”, and “tulog” to
increase their earnings. The “ tumbukan”
system gives the cabo and the ordinary
stevedore an opportunity to work with another
gang aside from the one he really belongs to.
The “pitik” system is the practice in which the
cabo brings to work a gang of only 7 or 8 men
instead of the required eleven. The wages of
these non-existent workers is called the “pitik” .
The “tulog” is the practice of having only six
men actually work aboard the ship, while two
are allowed to sleep or pilfer goods.
In another practice called the “Segundo”

23. The economy system provides physical
subsistence for a society.
It generates, as well as incorporates, social
changes for continuity of society.
The economy maintains a balance with
the other social systems and among its
social subsystems in the production,
processing, distribution and consumption
of economic goods and services.
The economic institution indicates the nature
of social stratification in the society.

24. Industrialism began in Western Europe in
the eighteenth century as a result of
massive technological innovations in the
production of goods.
Great Britain is the first and
classical example of industrialization as
it moved from an agricultural to a
commercial society. By 1830, it has
changed into an industrial society. Today,
it is one of the highly industrialized
countries in the world, which proved that
a strict program of development with

25. Among the many plans and programs that aim
to make the Philippine economy grow is the
conversion of the former American naval base, Subic
Naval Base into a free port zone under the
management of Subic Bay Metropolitan Authority
(SBMA).
Richard J. Gordon gave up his post as
Olongapo City Mayor to devote full time as SBMA
chairman to boost investments into the project to
$400 million.
U.s telecommunications companies – GTE, AT
& T, and Siemens – are also looking into the
possibility of setting up business in Subic.
Livelihood projects are also organized to help
the poor be self reliant. An example is the Smoky
Mountain Financing Training Program.
The community has also established a
computer school which land turned out 100
programmers. A 363 billion-peso project will provide

26. The project is being developed byR2 Builders, a Filipino
company headed by Regis Romero.
The implementation of the project will take three years
and is seen by President Ramos as a pivotal community
development for other smaller dump sites in the country.
Analysts have pinpointed several defects in the
economic structure of the Philippines. They identified the gross
inefficiency and lack of dynamism of the manufacturing sector
and the subsequent persistent balance of payments deficits and
recurrent huge public sector as a major problem. This industrial
sector is nurtured in excessive protectionism; the need to
modernize does not grip them they persist because of the
political power wielded by owners.
Another very significant block towards progress is rapid
population growth. Relatively slow economic growth and rapidly
rising population makes it difficult to expand education and
health services and improve their quality. The government also
has to give reduction of population growth policy priority to be
able to make progress in the alleviation of poverty (Asian
Development Bank 1990)