Economic sociology is a new field of study under the wide umbrella of Sociology and it simply concerns about the Social economy; area which can not be purely studied by neither Sociology nor Economics. This will hope fully help the students of Sociology, economics as well as economic sociology students if any.

1. CHAPTER THREE
ECONOMIC SOCIOLOGY
Abdirahman Ahmed

2. Meaning
 Economic sociology is the application
of the general frame of reference,
variables and explanatory models of
sociology to those complex activities
concerned with production,
distribution, exchange and
consumption of goods and services.

3. Subject Matter of Economic
Sociology
 It focuses on the economic activities
and how they are structured into
organizations
 It focuses on the relationship between
sociological variables as they manifest
themselves in economic and non-
economic contexts.
 It studies the distinctive sociological
aspects of the central economic
variables (money, saving and
investment).

4. Functions of the Economic
Institution
 CLASS DISCUSION
 What are the functions of economic
institution

5. Background to Economic
Sociology
 Herbert Spencer
For Spencer the evolution of the society
is from militant to industrial and to ethical
(perfect) form. In arguing this, he tried to
describe the economic activities that
characterize each of these forms of
societies
Militant : compulsory
Industrial: Voluntary Cooperation
He was an advocate of laissez faire
economy

6. Marx and Waber
 In contrast to the opposition of Marx,
Weber argues that ideology can play a
key role in influencing and changing
the economy of a society. Unlike Marx,
he did not see the idea system of
religion as opium of a society.

7.  Weber’s analysis contrasts Marx’s:
Marx considers religion to be a
dependent variable and the economy
an independent variable, whereas
Weber argues that religion could be
an independent variable that could
cause changes in other social
structures, including the economy.

8. Weber: The Protestant Ethic
and the Spirit of Capitalism
 In one of his major works in sociology,
Max Weber tried to trace the impact of
protestant religion on the spirit of
capitalism. He says the major
explanatory variable for the
emergence of capitalism in the West
was the set of religious ideas created
by the religious revolutions of the 16th
century.

9.  He alleges that he found out those
who are technical and commercial
owners and the leaders of the
economic system are overwhelmingly
Protestants. Their religion was the
main motivational factor for these
people to choose those occupations,
but other religious systems fail to
produce idea systems that encourage
people to those occupations

10.  He then, came up with certain values
that are associated with protestant
religion and that are so important to
capitalistic economic development.
1. Acquisition rationality
2. Financial Rationality
3. Work rationality
4. Individualism and competition

11. Contemporary Economic
systems
 Class discussion
 Let us lastly discuss about these
economic systems
 Capitalism
 Socialism
 Mixed Economic system

12.  THE END
 MANY THANKS DEAR STUDENTS