The Theory of Three Major Economic Formations in the Development of Human Society

Marxist theory that divides society into three formations based on economic formation of society: natural economy, commodity economy, and product economy (or economy of time).

Human society is a big system with rich content, which can be observed and comprehended from different clues and perspectives, and according to different division criteria, there are diverse methods to classify social formations. Marx also had diverse methods to classify social formations when studying them, and one of them was to take economic formation as the criterion. In the manuscripts of A Critique of Political Economy of 1857–1858, Marx made the following classification of the economic formations of society: “the dependence of human beings (at first completely natural) is the initial social form. In this form, the production capacity of human beings only develops in a narrow range and an isolated place.” “Relations of personal dependence (entirely spontaneous at the outset) are the first social forms, in which human productive capacity develops only to a slight extent and at isolated points.” “Personal independence founded on objective [sachlicher] dependence is the second great form, in which a system of general social metabolism, of universal relations, of all-round needs and universal capacities is formed for the first time. Free individuality, based on the universal development of individuals and on their subordination of their communal, social productivity as their social wealth, is the third stage. The second stage creates the conditions for the third. Patriarchal as well as ancient conditions (feudal, also) thus disintegrate with the development of commerce, of luxury, of money, of exchange value, while modern society arises and grows in the same measure.” Later, in Capital, Marx expressed the three formations as “direct social relations”, “objectified social relations” and “association of free men”. With the deepening of his inquiry into the primitive society, Marx later put forth “primary social formation”; “secondary social formation”; “tertiary social formation”, etc.

The theory of three major economic formations in the development of human society is divided according to the state of development of man, but this division takes the economic formation of society as its basis and content. Therefore, these three forms are summarized as three social formations: personal dependence, objective dependence and free individuality, and from the economic perspective as three formations: natural economy, commodity economy and product economy (or economy of time). Natural economy society, i.e., pre-capitalist society. In this social formation, due to the low level of productive forces, nature is an irresistible alien force to man, and man can only choose a mode of existence of collective life and joint work, and no individual member can break away from the collective on which he depends for survival. The division of labor is formed naturally, and the community, as a form of social production, shows people’s direct dependence in social relations. Commodity economy society, i.e., capitalist society. With the development of productive forces, natural division of labor is transformed into social division of labor, and products are transformed into commodities. On the one hand, the market economy renders it a necessity and a reality for individuals to become independent subjects of economic activity and a system of man’s all-round needs and universal capacities are formed and developed continuously; on the other hand, the universal commodity economy renders the social relations among men universal, such a universal relation is realized through things, i.e. money, and the relations of personal dependence are replaced by relations of objective dependence. In the product economy society, the social formation based on the universal development of individuals and on their subordination of their communal, social productivity as their social wealth, man is both conscious master of nature and conscious master of society, thus becomes the master of himself.

These three major economic formations embody not only the different divisions of labor and production capacities of society at different stages of production, but also the social relations among men at different phases of production, including the productive forces, relations of production, superstructure and many other social elements, showing that the development of social formations is a process of natural history. The theory of three major economic forms occupies an important position in the Marxist theory of social periodization, and is a theoretical ground for us to analyze the phases of social development.