Name - Dilpreet Singh

Student id - A00289669
Batch - HR3S2
BR-IND1011

1. What does relational economy mean to you?

Answer - The premise that economic activities are inherently entwined with social networks and
connections is at the heart of the "relational economy" concept. In contrast to conventional economic
theories that prioritize market exchanges and the aim of maximizing individual welfare, the relational
economy places emphasis on the role that social bonds, mutual trust, collaboration, and enduring
relationships have in influencing economic conduct and results.

Inside a relational economy

• Trust and Social Capital: The ability of people and institutions to trust one another is essential for
the smooth operation of economic transactions. High levels of trust can foster cooperation and
lower transaction costs, resulting in more robust and efficient economic systems.

• Relationships and Networks: Economic actors are viewed as a part of larger networks in which
interpersonal connections are important. These networks can affect how members of the
network are treated preferentially and encourage one another. They can also affect how
information, opportunities, and resources are accessed.

• Mutual Benefit and Reciprocity: Norms of mutual benefit and reciprocity, as opposed to only
competitive incentives, frequently serve as the guiding principles of transactions. In turn, this
can promote a feeling of community and well-being among everybody.

• Long-term Orientation: Rather than focusing on quick profits, a long-term relationship-building

and maintenance approach is taken. The capacity to build long-term alliances and collaborations
is frequently associated with sustainable economic success.

• Embeddedness: Economic actions are embedded within social, cultural, and institutional
contexts. This means that economic behavior cannot be fully understood without considering
the surrounding social structures and cultural norms.

In practice, a relational economy can be observed in various forms, such as family businesses,
cooperatives, community-based enterprises, and networks of small and medium-sized enterprises
(SMEs) that collaborate closely. The concept underscores the importance of integrating social
considerations into economic analysis and policy-making to achieve more holistic and sustainable
economic development.
2. What stands out to you in key characteristics of an Indigenous economy?

Answer - Values and behaviors that demonstrate a strong bond to the land, community, and cultural
traditions are frequently highlighted as essential elements of an indigenous economy. Several features
jump out:

• Sustainability and Stewardship: The sustainable use of natural resources is a top priority for
indigenous economies. This ensures that economic activity doesn't negatively impact the
environment and may be continued for the benefit of future generations. This demonstrates a
stewardship ethic that recognizes the importance of protecting the environment and using
resources with decency.

• Society and Group Community well-being is of utmost importance. Instead of concentrating only
on personal gain, economic decisions frequently take the good of the group as a whole into
consideration. Social solidarity and shared wealth are promoted by this collective strategy.

• Interconnectedness: It is acknowledged that all living things and natural systems are related.
Economic practices emphasize harmony with nature by integrating spiritual, cultural, and social
components.

• Redistribution and reciprocity are widespread social practices in which resources and wealth are
redistributed among members of the society in order to assist those who are less fortunate.
Traditions like potlatch ceremonies, which entail the distribution of wealth to strengthen social
ties and prestige, demonstrate this.

• The holistic approach views economic operations as a component of a system that encompasses
cultural, social, and spiritual aspects, rather than being divided into discrete areas. Economic
growth is guaranteed to uphold and strengthen cultural customs and communal values through
the application of an integrated perspective.

• Local Autonomy and Control: Self-sufficiency and local control are frequently prioritized in
indigenous economies. Decision-making authority is kept in the community, enabling business
ventures that complement regional needs and values.

• Customized Knowledge and Methods: Generation after generation, indigenous economic

systems integrate customary ecological knowledge and methods. To manage resources
responsibly and adjust to environmental changes, this knowledge is essential.

• Non-Monetary Exchanges: Indigenous economies have monetary transactions, but they also
heavily rely on non-monetary exchanges including barter, trade, and the sharing of commodities
and services.

These traits provide important insights into sustainable and community-focused economic activities and
demonstrate an economy that is firmly anchored in cultural heritage and environmental stewardship.

References:
https://www.franchising.com/articles/
what_is_the_relationship_economy_building_connections_that_last_with_your_c.html

https://link.springer.com/chapter/10.1007/978-3-030-86526-9_3

https://newsociety.ca/blogs/news/the-indigenous-economy

https://www.bankofcanada.ca/wp-content/uploads/2023/10/sdp2023-25.pdf