Economic Economic AnthropologyAnthropology

The Cross-Cultural Provision The Cross-Cultural Provision of Goods and Servicesof Goods and Services

Defining Economic Defining Economic AnthropologyAnthropology

• Basic definition:Basic definition:• The cross-cultural study of theThe cross-cultural study of the• Production, distribution, and consumption ofProduction, distribution, and consumption of• goods and servicesgoods and services• Economy is not to be confused with Economy is not to be confused with

technologytechnology• Technology involves techniques, Technology involves techniques, • Examples: hunting, cultivation, house Examples: hunting, cultivation, house

construction and others.construction and others.

ProductionProduction

• How people organize their How people organize their workwork

• Preindustrial society divide Preindustrial society divide labor by:labor by:

• GenderGender• AgeAge• Part-time specialization Part-time specialization

(full time in agricultural (full time in agricultural states)states)

• In industrial societies, In industrial societies, detail labor (labor split into detail labor (labor split into subparts)subparts)

DistributionDistribution• Emphasis is on exchangeEmphasis is on exchange• Three types predominate: Three types predominate: • ReciprocityReciprocity• RedistributionRedistribution• Market exchangeMarket exchange• Exchange often is embedded in Exchange often is embedded in

societysociety• Yanomamo: trade is part of political Yanomamo: trade is part of political

alliancealliance• Ongka’s Big Moka Ongka’s Big Moka illustrates how illustrates how

power is derived from an elaborate power is derived from an elaborate system of exchangesystem of exchange

ConsumptionConsumption

• Access to goods and servicesAccess to goods and services• Related to property, where Related to property, where

such rules existsuch rules exist• An example of consumption: An example of consumption:

leveling mechanisms in leveling mechanisms in fiesta systems (left) of fiesta systems (left) of

• Mesoamerican cargo systemMesoamerican cargo system• Involves some wealth Involves some wealth

levelingleveling• Also community control over Also community control over

surplus wealthsurplus wealth

OverviewOverview

• Scarcity postulateScarcity postulate• Infinity of human wantsInfinity of human wants• Limits of means to satisfy themLimits of means to satisfy them• Source of substantivist-formalist debateSource of substantivist-formalist debate• Relations of production, including propertyRelations of production, including property• Systems of exchange: 3 kinds of reciprocity, Systems of exchange: 3 kinds of reciprocity,

plus redistribution and market exchangeplus redistribution and market exchange• The embedding of economy in society orThe embedding of economy in society or• Polanyi: economy as instituted processPolanyi: economy as instituted process

Scarcity PostulateScarcity Postulate

• In Western societyIn Western society• Human wants are considered Human wants are considered

infiniteinfinite• Means of satisfying them are Means of satisfying them are

finitefinite• Example: cars from clunker to Example: cars from clunker to

LexusLexus• Robbins’ definition of economicsRobbins’ definition of economics• ““The science which studies The science which studies

human behaviorhuman behavior• as a relationship between endsas a relationship between ends• and scarce means that have and scarce means that have

alternative uses”alternative uses”

Are the Best Things in Are the Best Things in Life Free?Life Free?

• Free goodsFree goods• Goods that exist in plentiful supply Goods that exist in plentiful supply • Few examples: air if you don’t mind the Few examples: air if you don’t mind the

pollutantspollutants• Economic goodsEconomic goods• Those that are scarceThose that are scarce• Second sense of economics:Second sense of economics:

economizingeconomizing• How do you best use what is scarce?How do you best use what is scarce?

Substantivism and Substantivism and FormalismFormalism

• OverviewOverview• Substantivists emphasize cultural relativism of Substantivists emphasize cultural relativism of

economicseconomics• Scarcity is not universalScarcity is not universal• How goods and servicesHow goods and services• are produced and distributedare produced and distributed• depend on the society studieddepend on the society studied• Formalists emphasize scarcity is everywhereFormalists emphasize scarcity is everywhere• May be intangible thing, such as prestigeMay be intangible thing, such as prestige• Time is finite, even if other things are notTime is finite, even if other things are not

SubstantivismSubstantivism

• Polanyi: defined substantivism Polanyi: defined substantivism and formalismand formalism

• Substantivism: provision of goods Substantivism: provision of goods and servicesand services

• Defined three major modes of Defined three major modes of exchange: reciprocity, exchange: reciprocity, redistribution, and market redistribution, and market transactionstransactions

• Argued that scarcity postulate Argued that scarcity postulate does not apply everywheredoes not apply everywhere

• Economy is an instituted process.Economy is an instituted process.

FormalismFormalism

• Robbins: scarcity is everywhere Robbins: scarcity is everywhere presentpresent

• A question of economizing:A question of economizing:• Optimizing ends with limited meansOptimizing ends with limited means• Economizing occurs inEconomizing occurs in• Noneconomic contexts:Noneconomic contexts:• Politics: “safe” districts, uncertain Politics: “safe” districts, uncertain

onesones• Study time: major course, electiveStudy time: major course, elective• Cross-culturallyCross-culturally• Prestige is scarcePrestige is scarce• Onka’s Big MokaOnka’s Big Moka is illustrative is illustrative

Summarizing Formalism: The Summarizing Formalism: The Academic MarketAcademic Market

Relations of ProductionRelations of Production

• Arrangements governing production Arrangements governing production of goods and servicesof goods and services

• Involve several variablesInvolve several variables• Property: Property: • Is there such a thing as ownership?Is there such a thing as ownership?• If so, who exercises ownership?If so, who exercises ownership?• What rights are included?What rights are included?• Labor relations: Who does what?Labor relations: Who does what?

Property: Communalism Property: Communalism and Jointand Joint

• Communalism: ownership by Communalism: ownership by communitycommunity

• Property is freely accessible to allProperty is freely accessible to all• Or it involves a sharing Or it involves a sharing

arrangement--meat among !Kung or arrangement--meat among !Kung or InuitInuit

• Mesoamerica: communal ownership, Mesoamerica: communal ownership, private use rights (usufruct)private use rights (usufruct)

Joint propertyJoint property

• All share in rights and obligations All share in rights and obligations • Property held by members of a Property held by members of a

corporate lineage or clancorporate lineage or clan• Example: cattle ownership among Example: cattle ownership among

some East Africanssome East Africans• Analysis: Corporate Lineages and Analysis: Corporate Lineages and

ClansClans

Descent Groups Descent Groups (Corporate Groups)(Corporate Groups)

• Are organized with the following Are organized with the following characteristicscharacteristics

• Own estate: land, cattle, Own estate: land, cattle, fishing/hunting groundfishing/hunting ground

• May be owned by group orMay be owned by group or• owned by their constituent familiesowned by their constituent families

Descent Groups: Rights Descent Groups: Rights and Obligationsand Obligations

• Estate entails rights and obligationsEstate entails rights and obligations• Examples:Examples:• Rights to cattle for bridewealthRights to cattle for bridewealth• Obligation to provide cattle for bridewealthObligation to provide cattle for bridewealth• Obligation to defend herds (or add to them)Obligation to defend herds (or add to them)• Fulani:Fulani:• If one loses herd due to diseaseIf one loses herd due to disease• Others contribute to replenishment of here Others contribute to replenishment of here

Descent Groups: Descent Groups: PerpetuityPerpetuity

• The lineage or clan is The lineage or clan is sociocentricsociocentric• It outlasts the life span of individualsIt outlasts the life span of individuals• Not unlike corporations and downsizing Not unlike corporations and downsizing • Contrasts with kindreds-Contrasts with kindreds-egocentricegocentric• Kindred comprises full brothers and Kindred comprises full brothers and

sisterssisters• Overlaps with other kindreds Overlaps with other kindreds • When full siblings die, kindred diesWhen full siblings die, kindred dies

Legal PersonsLegal Persons

• Corporations are defined as legal personsCorporations are defined as legal persons• Similar to descent groupsSimilar to descent groups• Kwakiutl: murder of noble of one clan by Kwakiutl: murder of noble of one clan by

commoner of anothercommoner of another• Requires death of noble of commoner’s Requires death of noble of commoner’s

clanclan• Responsibility is thereby collectiveResponsibility is thereby collective• New Guinea: murder requires revenge--New Guinea: murder requires revenge--

regardless of individual viewregardless of individual view

Property: PrivateProperty: Private

• Private propertyPrivate property• Can be used to one’s own endCan be used to one’s own end• Community or public Community or public

restrictions applyrestrictions apply• One needs a permit to make One needs a permit to make

renovations renovations • Then there’s that ole debbil—Then there’s that ole debbil—

Eminent DomainEminent Domain• Recent news: houses are Recent news: houses are

being taken over by (private) being taken over by (private) corporationscorporations

Property: Command Property: Command EconomiesEconomies

• State in command economiesState in command economies• Communist countries owned Communist countries owned

most productive assetsmost productive assets• Upper Left: Chinese communeUpper Left: Chinese commune• Only remaining countries: Only remaining countries:

Cuba, N. KoreaCuba, N. Korea• Inca: a administrative economyInca: a administrative economy• Land mostly belonged to Land mostly belonged to

empireempire• Labor tax was motor of the Labor tax was motor of the

Inca economy (lower left)Inca economy (lower left)

Division of Labor: Gender Division of Labor: Gender and Ageand Age

• Definition: Assignment of tasks based on societal Definition: Assignment of tasks based on societal rule or normrule or norm

• Among foragers, horticulturalists, and Among foragers, horticulturalists, and pastoralists, division is assignedpastoralists, division is assigned

• By genderBy gender: women do some tasks; men, others: women do some tasks; men, others• By age:By age: youths do more strenuous tasks than the youths do more strenuous tasks than the

aged aged • The aged bring experience to each taskThe aged bring experience to each task• By part-time specialty:By part-time specialty: weaving, shamanism weaving, shamanism• But all handle jobs in primary sector: foraging or But all handle jobs in primary sector: foraging or

cultivatingcultivating

Division of Labor: Craft Division of Labor: Craft Specialization, Detail Specialization, Detail

LaborLabor• With intensive cultivationWith intensive cultivation• More devote full time to specialized craftsMore devote full time to specialized crafts• Knowledge extends to all aspects of a given Knowledge extends to all aspects of a given

craftcraft• Some may specialize by region: W. GuatemalaSome may specialize by region: W. Guatemala• Industrialization: Detail laborIndustrialization: Detail labor• Which is more efficient in pin production?Which is more efficient in pin production?• One man cutting wire, pointing pin, putting One man cutting wire, pointing pin, putting

head on it, whiting it, and papering ithead on it, whiting it, and papering it• Or five men, one to each task?Or five men, one to each task?

Division of Labor: Division of Labor: Industrial Production Industrial Production

SystemSystem

• Detail labor involves breaking each task downDetail labor involves breaking each task down• To its subtasks in productionTo its subtasks in production• Assigning each subtask to each individual andAssigning each subtask to each individual and• Ordering each individual how to do each subtaskOrdering each individual how to do each subtask

Effects: Globalized Division Effects: Globalized Division of Labor of Labor

• Has enabled globalization of Has enabled globalization of productionproduction

• Labor intensive tasks sent to Labor intensive tasks sent to Third WorldThird World

• Such as this leatherworking Such as this leatherworking operation in Ecuadoroperation in Ecuador

• Result: downsizing and plant Result: downsizing and plant closuresclosures

• Mexican maquiladoras close Mexican maquiladoras close • As low wages in China or As low wages in China or

Bangladesh draw factories Bangladesh draw factories therethere

Distribution: Exchange Distribution: Exchange RelationsRelations

• Once produced, good and service must be Once produced, good and service must be distributeddistributed

• Three ways by which goods are distributedThree ways by which goods are distributed• Reciprocity: direct exchange of goods and Reciprocity: direct exchange of goods and

servicesservices• Redistribution: Flow of goods and services Redistribution: Flow of goods and services

to central authority, then returned in to central authority, then returned in different formdifferent form

• Market exchange: buying and selling Market exchange: buying and selling through price mechanismthrough price mechanism

Imperatives of Exchange: Imperatives of Exchange: Background Background

• Marcel Mauss: Marcel Mauss: The GiftThe Gift• Preface: “When two groups of men meet, they Preface: “When two groups of men meet, they

may may • move away ormove away or• in case of mistrust they may resort to armsin case of mistrust they may resort to arms• or else they may come to terms”or else they may come to terms”• Coming to terms, he called “total prestations” orComing to terms, he called “total prestations” or• an obligation thatan obligation that• has the force of lawhas the force of law• in the absence of lawin the absence of law

Obligations of the GiftObligations of the Gift

• Obligation to giveObligation to give• To extend social ties to other person or To extend social ties to other person or

groupsgroups• Obligation to receiveObligation to receive• To accept the relationshipTo accept the relationship• Refusal is rejection of offered relationshipRefusal is rejection of offered relationship• Induces hostilitiesInduces hostilities• Obligation to repayObligation to repay• Failure to repay renders one a beggarFailure to repay renders one a beggar

Types of Reciprocity: Types of Reciprocity: GeneralizedGeneralized

• The obligations underlie the The obligations underlie the principles of reciprocityprinciples of reciprocity

• Reciprocity: Direct exchange of Reciprocity: Direct exchange of goods and servicesgoods and services

• Generalized reciprocity: altruistic Generalized reciprocity: altruistic transactions in whichtransactions in which

• gifts are freely given without gifts are freely given without calculating value or repayment duecalculating value or repayment due

• Example: meat distribution among !Example: meat distribution among !Kung (upper left)Kung (upper left)

• Example: family pooling of resources, Example: family pooling of resources, even birthday presents (lower left)even birthday presents (lower left)

• Usually occurs among close kinUsually occurs among close kin

Types of Reciprocity: Types of Reciprocity: BalancedBalanced

• Balanced reciprocity: Direct Balanced reciprocity: Direct exchangeexchange

• Value of gift is calculatedValue of gift is calculated• Time of repayment is specifiedTime of repayment is specified• Selling surplus food (upper left)Selling surplus food (upper left)• Kula ring, Trobriand IslandsKula ring, Trobriand Islands • One trader gives partner a white One trader gives partner a white

armband (see map, lower left)armband (see map, lower left)• Expects a red necklace of equal value Expects a red necklace of equal value

in returnin return• Promissory gifts are made until return Promissory gifts are made until return

occursoccurs• Usually occurs among distant kinUsually occurs among distant kin

Types of Reciprocity: Types of Reciprocity: NegativeNegative• Negative reciprocity: An exchange Negative reciprocity: An exchange

wherewhere• One party tries to get the better of the One party tries to get the better of the

exchangeexchange• from the other party.from the other party.• Example: hard bargaining or Example: hard bargaining or

deceptiondeception• Example: horse raids (upper left)Example: horse raids (upper left)• Example: selling prepared food to a Example: selling prepared food to a

captive market (lower left)captive market (lower left)• Usually occurs among unrelated Usually occurs among unrelated

personspersons• Variation: silent tradeVariation: silent trade

Case Study: Big Man Case Study: Big Man ComplexComplex

• Big men are headmen Big men are headmen with a followingwith a following

• Following created by Following created by doing a favor (e.g. doing a favor (e.g. lending pigs)lending pigs)

• Favor is difficult to Favor is difficult to repayrepay

• Individually, exchange Individually, exchange is reciprocityis reciprocity

• Collectively, has Collectively, has appearance of appearance of redistributionredistribution

Big Men’s Power: LimitsBig Men’s Power: Limits

• Cannot enforce the obligationsCannot enforce the obligations• Subject to competition to other big Subject to competition to other big

menmen• Exchange feasts every 10 years with Exchange feasts every 10 years with

another big man equal in statusanother big man equal in status

RedistributionRedistribution

• Process whereby goods Process whereby goods and servicesand services

• Flow to a central Flow to a central authority (king, chief, authority (king, chief, government)government)

• Where they are sorted, Where they are sorted, counted, andcounted, and

• ReallocatedReallocated• Classic example: PotlatchClassic example: Potlatch• Historical example: Historical example:

administered tradeadministered trade

Redistribution: Socialist Redistribution: Socialist ModelModel• Central feature of command Central feature of command

economieseconomies• Ethnographic example: Inca Ethnographic example: Inca

labor taxlabor tax• Here, men turn the soil with Here, men turn the soil with

foot plowsfoot plows• While the women break up the While the women break up the

clodsclods• Modern examples: socialist Modern examples: socialist

countriescountries• Students from across Latin Students from across Latin

America at Cuban medical America at Cuban medical schoolschool

Market ExchangeMarket Exchange

• Exchange of goods among Exchange of goods among many buyers and sellersmany buyers and sellers

• Directly, by Directly, by barter, barter, oror• Indirectly, by money and pricingIndirectly, by money and pricing• Example: Yoruba market in Example: Yoruba market in

Nigeria (upper left); Haitian Nigeria (upper left); Haitian market woman (lower left)market woman (lower left)

• Markets includeMarkets include• Crowds of buyers and sellersCrowds of buyers and sellers• Instant information on pricesInstant information on prices• Freedom of market entry and Freedom of market entry and

exitexit

Market Exchange: ActorsMarket Exchange: Actors

• Actors are:Actors are:• Supplier, whose Supplier, whose

willingness to sell is willingness to sell is directly proportional to directly proportional to price increasesprice increases

• Purchaser, whose Purchaser, whose willingness to buy willingness to buy (demand) is directly (demand) is directly proportional to price proportional to price decreasesdecreases

• Interaction lead to price Interaction lead to price equilibrium--no profitequilibrium--no profit

Example: Regional Example: Regional Guatemalan Markets Guatemalan Markets

• Case Study: San Case Study: San Francisco el AltoFrancisco el Alto

• Entry: seller pay small Entry: seller pay small tax; buyers pay nonetax; buyers pay none

• Many buyers and Many buyers and sellers sellers

• Price is constant topic Price is constant topic of conversationof conversation

• Profit is minimalProfit is minimal• Regional specialization Regional specialization

guarantee buyers for guarantee buyers for productproduct

ConclusionConclusion

• Economy entails distribution of goods Economy entails distribution of goods and servicesand services

• Still, economy is embedded in societyStill, economy is embedded in society• Big man complex involves politicsBig man complex involves politics• Maintains power by persuasion, Maintains power by persuasion,

negotiationnegotiation• Kula ring is also embedded in prestigeKula ring is also embedded in prestige• Interconnections will be seen in other Interconnections will be seen in other

topics: social groups and politicstopics: social groups and politics