Unit 2B: EconomicsUnit 2B: Economics

What is reciprocity?What is reciprocity?

How do various cultures use How do various cultures use it?it?

Economics conceptsEconomics concepts

►Every culture has a limited amount of Every culture has a limited amount of vital resourcesvital resources

►Must develop systems of production, Must develop systems of production, distribution, and consumptiondistribution, and consumption

Economic AnthropologyEconomic Anthropology

►Economics = focus on production, Economics = focus on production, distribution, and consumption as distribution, and consumption as observed in industrialized worldobserved in industrialized world

►Economic Anthropology = studies of Economic Anthropology = studies of the three areas comparatively in all the three areas comparatively in all societies in the world, industrialized societies in the world, industrialized and non-indus.and non-indus.

Western Economic ViewWestern Economic View

►Western economists assume that individuals Western economists assume that individuals and corporations are motivated by desire to and corporations are motivated by desire to maximize material well-beingmaximize material well-being

►Other societies’ economic principles may be Other societies’ economic principles may be based on reciprocity or re-distribution based on reciprocity or re-distribution practices emphasizing cooperation and practices emphasizing cooperation and generositygenerosity

► Even in USA there can be increases in Even in USA there can be increases in instances where people fail to maximize instances where people fail to maximize economic well-beingeconomic well-being

Allocation of Natural Allocation of Natural ResourcesResources

►Every society has a set of rules Every society has a set of rules governing allocation and use of governing allocation and use of resourcesresources

►The degree to which humans are The degree to which humans are territorial varies widely throughout the territorial varies widely throughout the worldworld

► Idea of personal property is absent in Idea of personal property is absent in most food collecting, pastoral, and most food collecting, pastoral, and horticultural societieshorticultural societies

Resources: Food CollectorsResources: Food Collectors► Land is not ownedLand is not owned► Follow migratory patterns of animalsFollow migratory patterns of animals► Claiming/defending territory takes time, Claiming/defending territory takes time,

energy, and technology that foragers energy, and technology that foragers choose not to expendchoose not to expend

► Territoriality can lead to conflictTerritoriality can lead to conflict► Amount of communal control of land variesAmount of communal control of land varies►Will have flexible boundaries if animals are Will have flexible boundaries if animals are

mobile and supplies unpredictablemobile and supplies unpredictable► Likely to live in permanent settlements and Likely to live in permanent settlements and

maintain greater land control if supplies are maintain greater land control if supplies are plentiful and predictableplentiful and predictable

Resources: PastoralistsResources: Pastoralists

► Require extensive territory and access to Require extensive territory and access to water and pasturage for livestockwater and pasturage for livestock

►Must work out arrangements among Must work out arrangements among themselves and with nonpastoralists to gain themselves and with nonpastoralists to gain access to pasturageaccess to pasturage

► Corporate (non-individual) control of Corporate (non-individual) control of pastures is general rulepastures is general rule

► Allocation of land and resources depends on Allocation of land and resources depends on ecological variables, types of animals, size ecological variables, types of animals, size of population relative to land, relationship of of population relative to land, relationship of pastoralists to larger societypastoralists to larger society

Resources: HorticulturalistsResources: Horticulturalists

►Tend to live on communally controlled Tend to live on communally controlled land, usually by extended kinship land, usually by extended kinship groupgroup

►Small family units retain rights as long Small family units retain rights as long as they work the land and are in good as they work the land and are in good standing with larger familystanding with larger family

►No advantage to owning land that No advantage to owning land that can’t be used permanentlycan’t be used permanently

Resources: Intensive Resources: Intensive AgriculturalistsAgriculturalists

►Resources are allocated using principle Resources are allocated using principle of private individual ownershipof private individual ownership

►Western concept of individual property Western concept of individual property rights has affected research with non-rights has affected research with non-Western peoplesWestern peoples

►Most westerners believe communal Most westerners believe communal property will be destroyed or degraded property will be destroyed or degraded because people lack an individual because people lack an individual incentive to maintain itincentive to maintain it

ProductionProduction

►Definition: process of obtaining goods Definition: process of obtaining goods from the natural environment and from the natural environment and transforming them into usable objectstransforming them into usable objects

►Vast range of systems of productionVast range of systems of production►Why any society produces certain Why any society produces certain

items is determined by economic items is determined by economic factors and cultural valuesfactors and cultural values

►Most societies fail to exploit all the Most societies fail to exploit all the resources at their disposalresources at their disposal

Units of ProductionUnits of Production

►All societies have some sort of All societies have some sort of productive unit comprising people with productive unit comprising people with specific tasks to performspecific tasks to perform

► In most nonindustrialized societies, In most nonindustrialized societies, basic unit of production is the basic unit of production is the householdhousehold

►Most, if not all, goods and services Most, if not all, goods and services consumed are produced by members of consumed are produced by members of the household (nuclear or extended)the household (nuclear or extended)

Division of LaborDivision of Labor

►Every society distinguishes to some Every society distinguishes to some degree between appropriate work for degree between appropriate work for men and women (gender) and adults men and women (gender) and adults and children (age)and children (age)

Division of Labor:Division of Labor:Gender SpecializationGender Specialization

► Men and women often assigned roles Men and women often assigned roles because of social, political, and historical because of social, political, and historical forces operating in individual societiesforces operating in individual societies

► Theories explaining common, if not universal, Theories explaining common, if not universal, division of labor by genderdivision of labor by gender Men’s greater body mass and strength makes Men’s greater body mass and strength makes

them better equipped for hunting, warfare, land them better equipped for hunting, warfare, land clearingclearing

Women’s tasks compatible with childcareWomen’s tasks compatible with childcare Mend tend to be more expendable so they engage Mend tend to be more expendable so they engage

in dangerous activitiesin dangerous activities

Division of Labor:Division of Labor:Age SpecializationAge Specialization

► Elderly, because of waning strength, often Elderly, because of waning strength, often prohibited from certain tasks or expected to prohibited from certain tasks or expected to engage in different activities from earlier yearsengage in different activities from earlier years

► Because of lack of knowledge and physical Because of lack of knowledge and physical strength, children are often excluded from strength, children are often excluded from certain taskscertain tasks In growing numbers, children under 14 are working In growing numbers, children under 14 are working

full time in the global economyfull time in the global economy Negative effects of child labor include working long Negative effects of child labor include working long

hours under deplorable conditions for low wageshours under deplorable conditions for low wages

Distribution of Goods and Distribution of Goods and ServicesServices

► Systems of exchange are essential for Systems of exchange are essential for every economyevery economy

► Allow people to dispose of surplusesAllow people to dispose of surpluses►Maximize diversity of goods and services Maximize diversity of goods and services

consumedconsumed►Goods and services are allocated in all Goods and services are allocated in all

societies according to 3 modes of societies according to 3 modes of distributiondistribution ReciprocityReciprocity RedistributionRedistribution Market exchangeMarket exchange

► Although more than one mode can operate Although more than one mode can operate in a society, usually only one predominatesin a society, usually only one predominates

ReciprocityReciprocity

►Definition: exchange of goods and Definition: exchange of goods and services of roughly equal value services of roughly equal value between two parties without the use of between two parties without the use of moneymoney 3 basic types3 basic types

►Generalized reciprocityGeneralized reciprocity►Balanced reciprocityBalanced reciprocity►Negative reciprocityNegative reciprocity

Generalized ReciprocityGeneralized Reciprocity

► An exchange system common among food An exchange system common among food collectors and contributes to their very survivalcollectors and contributes to their very survival

►Generosity is the highest idealGenerosity is the highest ideal► Hoarding and stinginess are seen as antisocialHoarding and stinginess are seen as antisocial► Usually between family members or close friendsUsually between family members or close friends► Involves highest level of moral obligationInvolves highest level of moral obligation► No expectation of immediate returnNo expectation of immediate return► In USA, seen in giving between parents & kidsIn USA, seen in giving between parents & kids

Balanced ReciprocityBalanced Reciprocity

► An exchange system involving expectation An exchange system involving expectation that goods and services of equivalent value that goods and services of equivalent value will be returned within a specific period of timewill be returned within a specific period of time

► Involves more formal relationships, greater Involves more formal relationships, greater social distance, and strong obligation to repay social distance, and strong obligation to repay original giftoriginal gift

► Major economic motivation is to exchange Major economic motivation is to exchange surplus good and services for those in short surplus good and services for those in short supplysupply

► Creates a system of affiliation (Kula Ring)Creates a system of affiliation (Kula Ring)

Negative ReciprocityNegative Reciprocity

► Form of exchange between equals in which Form of exchange between equals in which the parties attempt to take advantage of each the parties attempt to take advantage of each otherother

► Based on principle of trying to get something Based on principle of trying to get something for nothingfor nothing

► Involving the most impersonal (possibly Involving the most impersonal (possibly hostile) social relationshostile) social relations

► Sense of altruism and social obligation is at Sense of altruism and social obligation is at its lowestits lowest

► Incompatible with close, harmonious relationsIncompatible with close, harmonious relations► Most often practiced against strangers and Most often practiced against strangers and

enemiesenemies

RedistributionRedistribution

►Goods are given to a central authority Goods are given to a central authority and then given back to people in a new and then given back to people in a new patternpattern

► Involves 2 stages: inward flow of goods Involves 2 stages: inward flow of goods and services to social center, followed and services to social center, followed by outward dispersal of goods and by outward dispersal of goods and services back to societyservices back to society

►Most common in societies that have Most common in societies that have political hierarchiespolitical hierarchies

Redistribution: TributeRedistribution: Tribute

►Serves social function by dispensing Serves social function by dispensing goods within a society and affirming goods within a society and affirming political power of the chief and value political power of the chief and value of solidarity among the peopleof solidarity among the people

►Equitable distribution is rarely found Equitable distribution is rarely found in most situations where tribute is in most situations where tribute is givengiven

Redistribution: Redistribution: Big Men/Feast GiversBig Men/Feast Givers

► Self made leaders who are able to convince Self made leaders who are able to convince their relatives/neighbors to contribute surplus their relatives/neighbors to contribute surplus goods for the sake of community wide goods for the sake of community wide feastingfeasting

► Economic entrepreneursEconomic entrepreneurs► Found widely throughout Melanesia and New Found widely throughout Melanesia and New

GuineaGuinea Work hard to produce surpluses and encourage Work hard to produce surpluses and encourage

followers to do the same, all for the sake of giving followers to do the same, all for the sake of giving it awayit away

Growing evidence that there are also big women in Growing evidence that there are also big women in MelanesiaMelanesia

Redistribution: BridewealthRedistribution: Bridewealth

► Involves transfer of valuable Involves transfer of valuable commodities from groom’s lineage to commodities from groom’s lineage to the bride’s lineage as a precondition the bride’s lineage as a precondition for marriagefor marriage

►Mechanism for maintaining roughly Mechanism for maintaining roughly equitable distribution of goods within a equitable distribution of goods within a societysociety

Redistribution: PotlatchRedistribution: Potlatch

► Chiefs or prominent men announce rights, Chiefs or prominent men announce rights, privileges, and high social status within their privileges, and high social status within their communitiescommunities

► Claims accompanied by elaborate feasting Claims accompanied by elaborate feasting and gift givingand gift giving

►Host would either give away or destroy all Host would either give away or destroy all of his personal possessionsof his personal possessions

► Serves as a mechanism for dispersal of Serves as a mechanism for dispersal of material goodsmaterial goods

► Also serves man socio-political functionsAlso serves man socio-political functions

Redistribution: Prestige Redistribution: Prestige EconomiesEconomies

► Institutions of the Kula, potlatch, and Institutions of the Kula, potlatch, and Big men/Women are not only Big men/Women are not only mechanisms of distribution, but also mechanisms of distribution, but also ways of allocating prestige and social ways of allocating prestige and social status through affiliationstatus through affiliation

Redistribution: Market Redistribution: Market ExchangeExchange

►Goods and services are bought and sold, often Goods and services are bought and sold, often through the use of a standardized currencythrough the use of a standardized currency

► Less personal than exchanges based on Less personal than exchanges based on reciprocity or other forms of redistributionreciprocity or other forms of redistribution

► Exchanges predominantly economic in natureExchanges predominantly economic in nature► People more interested in maximizing profits People more interested in maximizing profits

than in maintaining a long-term relationshipthan in maintaining a long-term relationship► Likely found in sedentary societies that Likely found in sedentary societies that

produce appreciable surpluses and have produce appreciable surpluses and have complex division of laborcomplex division of labor