The subsistence economy

The subsistence economy is an economic system in which production is aimed solely at meeting the community's basic survival needs, without generating surpluses for trade or wealth accumulation. This type of economy is common in traditional societies, indigenous tribes, and isolated rural communities. Characteristics of the Subsistence Economy Production for Own Consumption – People produce only what is necessary to feed, clothe, and shelter themselves. Low Technology – Use of simple tools and traditional methods of farming, hunting, fishing, and crafts. Little or No Commercial Exchange – Since there is no significant surplus, exchanges occur on a small scale, usually through barter. Dependence on Nature – Climatic and environmental conditions strongly influence production, making the economy vulnerable to natural disasters. Self-sufficiency – Each family or community organizes itself to produce everything it needs, without depending on external markets. Limitations of the Subsistence Economy Low productivity, hindering population and economic growth. Lack of innovation, since there is no incentive to modernize production. Vulnerability to crises such as droughts, pests or climate change, which can lead to famine. With the advancement of the market economy, subsistence economies have become increasingly rare, but they still exist in remote regions and traditional communities around the world.