Economic Systems and Forms of Exchange

Economic systems

Production and allocation of material goods and services

Do not operate independently of other aspects of society

Especially closely associated with political systems which are concerned with the allocation of power and authority

economic systems – three interrelated aspects Patterns of subsistence – the means by

which environmental resources are converted for human use

Systems of distribution – the means by which goods and services are made available to members of a particular group

Patterns of consumption

Non-Western Economic Systems

Are there any? Anthropological approaches to the study

of economic systems of production, distribution, and consumption

The Formalist vs. Substantivist Debate

The birth of economic anthropology

Formalist Approach: the Neo-Classical Toolkit Adam Smith (19th cent.) and the descriptive

analytics of western capitalism Profit motive as human universal Maximizing utility Scarcity, cost/benefit, price Market governed by laws of supply and

demand Rational economic behavior – human

universal

Marxism and Neo-Marxism Karl Marx (19th cent.) Marxist and Neo-Marxist approaches

– How economic systems and economic relations sustain relations of power and control over labor

– The “mode of production”• Means/Forces of production• Relations of production• Superstructure (ideology)

The Substantivists’ and Marx’s modes of production

Marx’s Modes of Production Emphasizes social relations & conflict

within the system– The dialectic

Emphasizes role of economy (a system of production, distribution, and consumption) in establishing and maintaining social relations

Substantivist concern with the social embeddedness of the economy

Substantivist Economic Theory

formal neoclassical theory cannot be used to explain economic activities in non-western societies

patterns of economic exchange must instead be interpreted within a society's cultural context

rationality is culturally, not universally defined

The Substantivist Approach Studying the cultural particulars of any

group and economic system Economic maximization and cultural

specificty– Economizing: the rational allocation of

scarce means (or resources) to alternative ends (or uses)

Socially embedded economy with other values than profit and maximization

Idea of the “moral economy” the ways in which economic activities are

influenced or constrained to some degree by moral considerations– even though these sometimes get compromised or

overridden by other considerations

Self-interest, power and expedience are not the only influences on economic life.

Not only in the domestic sphere but in the formal economy, within organisations, in labour and product markets, moral sentiments and norms influence behaviour

Patterns of Labor

Sexual Division of Labor– Differentiation & integration

– The basis of society

Configurations of SDL

– Flexibility

– Rigid segregation & Dual Sex systems

Dual Sex Patterns of Labor a dual-sex society in which both sexes are assigned

their special responsibilities Women are a sexual class that has a common

position with respect to another sexual class, males. a social relationship with each other

– partnership and cooperation– division of tasks– sexual relationships– relationships of domination and oppression.

complementary but at other times these two sexual classes are in opposition to each other.

each class has a different set of interests, and women often have interests opposed to those of males.

Patterns of Labor

Age Division of Labor– Typical of human societies

Cooperation– Household is the basic unit

Craft Specialization– Found in both industrial and nonindustrial

societies

Control of Land All societies allocate land resources Food Foragers -- Where to hunt and gather Horticulturalists -- Distribution of

farmland Pastoralists -- Water and grazing rights Industrial societies -- Private

ownership prevails Nonindustrial societies -- Often

controlled by kinship groups

Technology Tools and other material equipment,

together with the knowledge of how to make and use them

The act of production

Foragers and pastoralists generally have fewer and less complex tools than sedentary peoples

Forms of Exchange (Polanyi) Formalist approach ignores some forms

of exchange– Reciprocity– Redistribution– Market forms of exchange (contract)

What Can be Exchanged or Distributed? Material goods Symbolic goods Labor Money Services Rights People

Reciprocity

two individuals or groups pass goods back and forth with the aim of:– helping someone in need by sharing goods

with him or her– creating, maintaining, or strengthening

social relationships– obtaining goods for oneself

Forms of Reciprocity (M. Sahlins) generalized - those who give goods or

services do not expect the recipient to make a return of goods and services at any definite time in the future

balanced - goods and services are given to someone with the expectation that a return in goods and services of roughly equal value will occur

negative - both parties attempt to gain all they can from the exchange while giving up as little as possible

Reciprocity and Social Distance In time and space Establishes and maintains social

distance Can change already established social

distance

Reciprocity and “the Gift”(M. Mauss) Obligatory & interested exchanges The gift received has to be repaid The persons represented are moral

persons (relational) -- clans, tribes, families, etc

Redistribution

the members of an organized group contribute goods or money into a common pool or fund

usually a central authority has the privilege and responsibility to make decisions about how the goods or money later will be allocated among the group as a whole– i.e. taxation

Market or contract exchange

forces of supply and demand determine costs and prices, goods or services are sold for money, which in turn is used to purchase other goods, with the ultimate goals of acquiring more money and accumulating more goods– Disinterested– Legally defined

KULA RING - TROBRIAND ISLANDERS, Papua New Guinea kula ring: a system of ceremonial,

non-competitive, exchange practiced in Melanesia to establish and reinforce alliances

Kula Ring as System of Embedded Exchanges Classic example of balanced reciprocity

– ceremonial exchange of valued shell ornaments

– scheme for trading food & other items with people of neighboring islands

– trading between trading partners

Malinowski's study of the Kula ring exchange system was influential in shaping the anthropological concept of reciprocity

Kula Ring Objects of Exchange

Bagi and Mwali - traditional trading items used in the Milne Bay Kula Ring

white arm shells (mwali) and red shell necklaces (bagi)

Kula Shells and Exchange

Kula shells traditionally move through a series of islands, along a particular path

mwali move in a counterclockwise path through the villages in which the various kula partners live

bagi pass through the same hands, but move clockwise

shell armbands and necklaces makes this circuit in anywhere from two to five years

mwali and bagi are both assessed for their value based on size, colour, and how well they are polished or finished

shells increase in value with age and both men and shells gain prestige in their association with one another

man may gain fame and notoriety for having possessed a particularly fine armband

similarly, a necklace may be highly regarded for having been owned by a great man

Kula Exchange Relations

kula partners– Important social bonds– Inter-generational relationships– Peace pact

basic rule is that one cannot keep a valuable bagi or mwali indefinitely nor withdraw it from circulation unless one owns it personally

The Meanings of Kula Exchanges balanced reciprocity - goods and

services are given to someone with the expectation that a return in goods and services of roughly equal value will occur (armbands and necklaces)

fit with myths of adventure, ritual history, continued repossession of valued things

Ceremonial Exchange and Other Forms of Exchange during ceremonial trading "real" trading

goes on, gift giving, exchange or barter different islands differing resource

availability, some no food resources, build canoes, other islands surpluses of yams, taro, pigs

scheme for trading food & other items with people of neighboring islands

Consumption

Not just what we eat but the resources we use

Modes of consumption– Minimalism vs. consumerism– Or use vs. exchange values

Demand (consumption) and desire Consumption is an aspect of the overall

political economy (Baudrillard & Marx)

Consumption (A. Appadurai)

Consumption, demand, desire– Not culture free

Collective regulation of demand/consumption– Social regulation of the desire for goods

and services• Free trade• Ethos of limited good

Consumption

A way of sending and receiving messages (M. Douglas)

Goods and services consumed circulate regimes of value (Appadurai)

Prestige group, class, and taste/demand/consumption (Bourdieu)– The social life of things (Appadurai)