Functional Differentiation
Functional Differentiation refers to the division of society in different independent subsystems. The theory was developed by the German sociologist Niklas Luhmann (1927-1998). It is a social analysis of modern society.
Every social system is self-reliant and has its own function in society. It is based on an individual communication and interacts with a specific media. This media again contains a specific code, meaning that every social system provides an individual language. Luhmann identifies different social subsystems such as economy, religion, politics, law, science, education, family etc. The result is a decentralized concept of society.
In terms of economy the medium of communication is money and the corresponding code is payment or non-payment. Luhmann defines society as an autopoietic system that consists only of communication. The subsystem reproduces itself according to the underlying code, independently from its environment, as a closed unit. This leads to the effectiveness of every functional system.
Politics were seen as the centre of society for a long time. On the basis of functional differentiation the political system is also an operationally closed system using the medium of power and the code of power over non-power. The political system rather gains more influence that other functional system by its connection to the legal system. Luhmann calls these connections structural couplings enabling a combined decision-making. The control over another functional system is impossible.