A person’s attempt to take advantage of another person economically is called
Discovering Cultural Anthropology shares and adapts this work under the CC BY-NC 4.0 copyright license Show • Define economic anthropology and identify ways in which economic anthropology differs from the field of Economics One of the hallmarks of the human species is our flexibility: culture enables humans to thrive in extreme artic and desert environments, to make our homes in cities and rural settings alike. Yet amidst this great diversity there are also universals. For example, all humans, like all organisms, must eat. We all must make our living in the world, whether we do so through foraging, farming, or factory work. At its heart, economic anthropology is a study of livelihoods: how humans work to obtain the material necessities such as food, clothing, and shelter that sustain our lives. Across time and space, different societies Economic anthropology is always in dialogue (whether implicitly or explicitly) with the discipline of economics. However, there are several important differences between the two disciplines. Perhaps most importantly, economic anthropology encompasses the production, exchange, consumption, meaning, and uses of both material objects and immaterial services, whereas contemporary economics focuses primarily on market exchanges. In addition, economic anthropologists dispute the idea that all individual thoughts, choices, and behaviors can be understood through a narrow lens of rational, self-interested decision-making. When asking why people choose to buy a new shirt rather than shoes, anthropologists, and increasingly economists, look beyond the motives of Homo economicus to determine how social, cultural, political, and institutional forces shape humans’ everyday decisions. A key concept in anthropological studies of economic life is the mode of production, or the social relations through which human labor is used to transform energy from nature using tools, skills, organization, and knowledge. This concept originated with anthropologist Eric Wolf, who was strongly influenced by the social theorist Karl Marx. Marx argued that human consciousness is not determined by our cosmologies or beliefs but instead by our most basic human activity: work. Wolf identified three distinct modes of production in human history: domestic (kin-ordered), tributary, and capitalist. Domestic or kin-ordered production organizes work on the basis of family relations and does not necessarily involve formal social domination, or the control of and power over other people. However, power and authority may be exerted on specific groups based on age and gender. In the tributary mode of production, the primary producer pays tribute in the form of material goods or labor to another individual or group of individuals who controls production through political, religious, or military force. The domestic, or kin-ordered, mode of production characterizes the lives of foragers and smallscale subsistence farmers with social structures that are more egalitarian than those characterizing the other modes of production (though these structures are still shaped by age- and gender-based forms of inequality). In the domestic mode of production, labor is organized on the basis of kinship relations (which is why this form of production is also known as kin-ordered). In southern Mexico and parts of Central America, many indigenous people primarily make their living through small-scale subsistence Figure 1: Woman Grinding Corn with a Metate Foraging societies are also characterized by (1) the collective ownership of the primary means of production, (2) lower rates of social domination, and (3) sharing. For example, the Dobe Ju/’hoansi (also known as the !Kung), a society of approximately 45,000 people living in the Kalahari Desert of Botswana and Namibia, typically live in small groups consisting of siblings of both sexes, their spouses, and children. They all live in a single camp and move together for part of the year. Typically women collect plant foods and men hunt for meat. These resources are pooled within family groups and distributed within wider kin networks when necessary. However, women will also kill animals when the opportunity presents itself, and men spend time collecting plant foods, even when hunting. Kinship relations are determined by culture, not biology. Interestingly, in addition to genealogical kinship, the Dobe Ju/’hoansi recognize kinship relations on the basis of gender-linked names; there are relatively few names, and in this society the possession of common names trumps genealogical ties. This means that an individual would call anyone with his father’s name “father.” The Dobe Ju/’hoansi have a third kinship system that is based on the principle that an older person determines the kinship terms that will be used in relation with another individual (so, for example, an elderly woman may refer to a young male as her nephew or grandson, thus creating a kin relationship). The effect of these three simultaneous kinship systems is that virtually everyone is kin in Ju/’hoansi society—those who are biologically related and those who are not. This successfully expands the range of individuals with whom products of labor, such as meat from a kill, must be shared. These beliefs and the behaviors they inspire reinforce key elements of the domestic mode of production: collective ownership, low levels of social domination, and sharing. The tributary mode of production is found in social systems divided into classes of rulers and subjects. Subjects, typically farmers and/or herders, produce for themselves and their families, but they also give a proportion of their goods or labor to their rulers as tribute. The tributary mode of production characterizes a variety of precapitalist, state-level societies found in Europe, Asia, Africa, and the Americas. These societies share several common features: (1) the dominant units of production are communities organized around kinship relations; (2) the state’s society depends on the local communities, and The capitalist mode of production is the most recent. While many of us may find it difficult to conceive of an alternative to capitalism, it has in fact only existed for a mere fraction of human history, first originating with the North American and western European industrial revolution during the seventeenth and eighteenth centuries. Capitalism is distinguished from the other two modes of production as an economic system based on private property owned by a capitalist class. In the domestic and tributary modes of production, workers typically own their means of production (for example, the land they Small-scale, semi-subsistence farmers make up the largest single group of people on the planet today. Once known as peasants, these people pose an interesting conundrum to economic anthropologists because they live their lives both inside and outside of global capitalism and state societies. These farmers primarily use their own labor to grow the food their families eat. They might also produce some type of commodity for sale. For example, many of the indigenous corn farmers in southern Mexico and Central America discussed earlier also produce small amounts of coffee that they sell in order to earn While these farmers are producing a product for the global market, it is not strictly a capitalist mode of production. They own their own land and they sell the fruits of their labor for guaranteed prices. They also work cooperatively with one another, pooling and exchanging their labor, in order to guarantee the smooth functioning of their organization. This cooperation, while essential, is hard work. The informal economy includes a diverse range of activities that are unregulated (and untaxed) by the state: rickshaw pullers in Calcutta, street vendors in Mexico City, and scrap-metal recyclers in Lexington, Kentucky, are all considered informal workers. Informal economies include people who are informally self-employed and those working informally for other people’s enterprises. In some parts of the world the informal economy is a significant source of income and revenue. In Sub-Saharan Africa, for example, the informal economy generates nearly 40 percent as much revenue as that included in In Zambia the secondhand clothes are imported in bulk by 40 wholesale firms that, in turn, sell the clothes to salaula traders. The traders sell the clothes out of their homes and in large public markets. Typically the people working as salaula traders have either never had formal-sector jobs or have lost their jobs in the public or private sector. Often they start selling in order to accumulate money for other activities or as a sideline business. Hansen found that there were slightly more female sellers and that women were more likely to be single heads of households. Successful salaula trading requires business acumen and practical skills. Flourishing traders cultivate their consumer knowledge, develop sales strategies, and experiment with display and pricing. While salaula trading has relatively low barriers to entry (one simply has to purchase a bale of clothing from a wholesale importer in order to get started), in this informal market scale is important: salaula moves best when traders have a lot of it on offer. Traders also have to understand the local cultural politics in order to successfully earn a living in this sector. For example, salaula is different from used clothing from people someone knows. In fact, secondhand clothing with folds and wrinkles from the bale is often the most desirable because it is easily identifiable as “genuine” salaula. The global salaula commodity chain presents an interesting example of how material goods can flow in and out of capitalist modes of production and exchange. For example, I might buy a dress that was produced in a factory to give (not sell!) to my young niece. After wearing the dress for several months, Maddie will probably outgrow it, and her Mom will drop it off at the nearby Goodwill shop. There is a 50 percent chance that the dress will be sold by the charity to a clothing recycler who will export it to Zambia or a nearby country. From there the dress will end up in a bale of clothing that is purchased by a salaula trader in Lusaka. At this point the dress enters the informal economy as the salaula markets are unregulated and untaxed. A consumer might buy the dress and realize that it does not quite fit her own daughter. She might then take it to her neighbor, who works informally as a tailor, for alternations. Rather than paying her neighbor for the work on the dress, the consumer might instead arrange to reciprocate at a later date by cleaning the tailor’s home. This single item of clothing that has traveled the globe and moved in and out of formal and informal markets highlights how diverse our economic lives really are, a theme that we will return to at the end of this chapter. There are three distinct ways to integrate economic and social relations and distribute material goods. Contemporary economics only studies the first, market exchange. Most economic models are unable to explain the second two, reciprocity and redistribution, because they have different underlying logics. Economic anthropology, on the other hand, provides rich and nuanced perspective into how diverse modes of exchange shape, and are shaped by, everyday life across space and time. Anthropologists understand market exchange to be a form of trade that today most commonly involves general While early economic anthropology often seemed focused on detailed investigations of seemingly exotic economic practices, anthropologists such as Bronislaw Malinowski and Marcel Mauss used ethnographic research and findings to critique Western, capitalist economic systems. Today, many follow in this tradition and some would agree with Keith Hart’s statement that economic anthropology “at its best has always been a search for an alternative to capitalism.” Mauss, a French anthropologist, was one of the first scholars to provide an in-depth exploration of reciprocity and the role that gifts play in Consider a young child. Friends and family members probably purchase numerous gifts for the child, small and large. People give freely of their time: changing diapers, cooking meals, driving the child to soccer practice, and tucking the child in at night. These myriad gifts of toys and time are not written down; we do not keep a running tally of everything we give our children. However, as children grow older they begin to reciprocate these gifts: mowing an elderly grandmother’s yard, cooking dinner for a parent who has to work late, or buying an expensive gift for an older sibling. When we gift without Unlike generalized reciprocity, balanced reciprocity is more of a direct exchange in which something is traded or given with the expectation that something of equal value will be returned within a specific time period. This form of reciprocity involves three distinct stages: the gift must be given, it has to be received, and a reciprocal gift has to be returned. A key aspect of balanced reciprocity is that without reciprocation within an appropriate time frame, the exchange system will falter and the social relationship might end. Balanced reciprocity generally occurs at a social level more distant than the family, How many of us give and receive gifts during the holiday season? Christmas is undeniably a religious celebration, yet while nine in ten Americans say they celebrate Christmas, about half view it to be more of a secular holiday. Perhaps this is why eight in ten non-Christians in the United States now celebrate Christmas. How and why has this one date in the liturgical calendar come to be so central to U.S. culture and what does gift giving have to do with it? In 1865, Christmas was declared a national holiday; just 25 years later, Ladies’ Home Journal was already complaining that the holiday had become overly Unlike balanced and generalized reciprocity, negative reciprocity is an attempt to get something for nothing. It is the most impersonal of the three forms of reciprocity and it commonly exists among people who do not know each other well because close relationships are incompatible with attempts to take advantage of other people. Gambling is a good example of negative reciprocity, and some would argue that market exchange, in which one participant aims to buy low while the other aims to sell high, can also be a form of negative reciprocity. The emails are crafted to invoke a sense of balanced reciprocity: the authors tell us how trustworthy and esteemed we are and offer to give us a percentage of the money in exchange for our assistance. However, most savvy recipients immediately recognize that these scams are in fact a form of negative reciprocity since they know they will never actually receive the promised money and, in fact, will probably lose money if they give their bank account information to their correspondent. Redistribution is the accumulation of goods or labor by a particular person or institution for the purpose of dispersal at a later date. Redistribution is found in all societies. For example, within households we pool our labor and resources, yet we rarely distribute these outside of our family. For redistribution to become a central economic process, a society must have a centralized political apparatus to coordinate and enforce the practice. Redistribution can occur alongside other forms of exchange. For example, in the United States everyone who works in the formal sector pays federal taxes to the Internal Revenue Service. During the 2015 fiscal year the IRS collected $3.3 trillion in federal revenue. It processed 243 million returns, and 119 million of these resulted in a tax refund. In total, $403.3 billion tax dollars were redistributed by this The third way that societies distribute goods and services is through market exchange. Markets are social institutions with prices or exchange equivalencies. Markets do not necessarily have to be localized in a geographic place (e.g., a marketplace), but they cannot exist without institutions to govern the exchanges. Market and reciprocal exchange appear to share similar features: one person gives something and the other receives something. A key distinction between the two is that market exchanges are regulated by supply and demand mechanisms. The forces of supply and demand can create risk for To better understand the nature of market transactions, anthropologist James Acheson studied the economic lives of Maine fishermen and lobster dealers. The lobster market is highly sensitive to supply and demand: catch volumes and prices change radically over the course of the year. For example, during the winter months, lobster catches are typically low because the animals are inactive and fishermen are reluctant to go out into the cold and stormy seas for small catches. Beginning in April, lobsters become more active and, as the water warms, they migrate toward shore and catch volumes increase. In May prices fall dramatically; supply is high but there are relatively few tourists and demand is low. In June and July catch volume decreases again when lobsters molt and are difficult to catch, but demand increases due to the large influx of tourists, which, in turn, leads to higher prices. In the fall, after the tourists have left, catch volume increases again as a new class of recently molted lobsters become available to the fishermen. In other words, catch and price are inversely related: when the catch is lowest, the price is highest, and when the catch is highest, the price is lowest. The fishermen generally sell their lobsters to wholesalers and have very little idea where the lobsters go, how many hands they pass through on their way to the consumer, how prices are set, or why they vary over the course of the year. In other words, from the fisherman’s point of view the process is shrouded in fog, mystery, and rumor. Acheson found that in order to manage the inherent risk posed by this variable market, fishermen form long-term, personalized economic relationships with particular While general purpose money is not a prerequisite for market exchanges, most commercial transactions today do involve the exchange of money. In our own society, and in most parts of the world, general purpose money can be exchanged for all manner of goods and services. General purpose money serves as a medium of exchange, a tool for storing wealth, and as a way to assign interchangeable values. It reflects our ideas about the generalized interchangeability of all things—it makes products and services from all over the world commensurable in terms of a single metric. In so doing, it increases Prior to colonialism, the Tiv people in Nigeria had an economic system governed by a moral hierarchy of values that challenged the idea that all objects can be made commensurable through general purpose money. The anthropologists Paul and Laura Bohannan developed the theory of spheres of exchange after recognizing that the Tiv had three distinct economic arenas and that each arena had its own form of money. The subsistence sphere included locally produced foods (yams, grains, and vegetables), chickens, goats, and household utensils. The second sphere encompassed slaves, cattle, white While we may take our general purpose currency for granted, as the Tiv example demonstrates, money is profoundly symbolic and political. Money is not only the measure of value but also the purpose of much of our activity, and money shapes economic relations by creating inequalities and obliterating qualitative differences. In other words, I might pay a babysitter $50 to watch my children for the evening, and I might spend $50 on a new sweater the next day. While these two expenses are commensurable through general purpose money, qualitatively they are in fact radically different in terms of the sentiment I attach to each (and I would not ever try to pay my babysitter in sweaters). Some communities explicitly acknowledge the political and symbolic components of money and develop complementary currency systems with the goal of maximizing transactions in a geographically bounded area, such as within a single city. The goal is to encourage people to connect more directly with each other than they might do when shopping in corporate stores using general purpose money. For example, the city of Ithaca, New York, promotes its local economy and community self-reliance through the use of Ithaca HOURS. More than 900 participants accept Ithaca HOURS for goods and services, and some local employers and employees even pay or receive partial wages in the complementary currency. The currency has been in circulation since 1991, and the system was incorporated as a nonprofit organization in 1998. Today it is administered by a board of elected volunteers. Ithaca HOURS circulate in denominations of two, one, one-half, one-fourth, one-eighth, and one-tenth HOURS ($20, $10, $5, $2.50, $1.25, and $1, respectively). The HOURS are put into circulation through “disbursements” given to registered organization members, through small interest-free loans to local businesses, and through grants to community organizations. The name “HOURS” evokes the principle of labor exchange and the idea that a unit of time is equal for everyone. Figure 5: An Ithaca Hour Note The anthropologist Faidra Papavasiliou studied the impact of the Ithaca HOURS currency system. She found that while the complementary currency does not necessarily create full economic equality, it does create deeper connections among comunity members and local businesses, helping to demystify and personalize exchange (much as we saw with the lobstermen and dealers). The Ithaca HOURS system also offers important networking opportunities for locally owned businesses and, because it provides zero interest business loans, it serves as a form of security against economic crisis. Finally, the Ithaca HOURS complementary currency system encourages community members to shop at locally owned businesses. As we will see in the next section, where we choose to shop and what we choose to buy forms a large part of our lives and cultural identity. The HOURS system demonstrates a relatively successful approach to challenging the inequalities fostered by general purpose money. Consumption refers to the process of buying, eating, or using a resource, food, commodity, or service. Anthropologists understand consumption more specifically as the forms of behavior that connect our economic activity with the cultural symbols that give our lives meaning. People’s consumption patterns are a large part of their lives, and economic anthropologists explore why, how, and when people consume what they do. The answers to these questions lie in people’s ideologies and identities as members of a social group; each culture is different and each consumes in its own way. Consumption We have already learned about the hard work that Americans devote to converting impersonal commodities into sentimental gifts at Christmastime with the goal of nourishing their closest social bonds. Consumers in capitalist systems continuously attempt to reshape the meaning of the commodities that businesses brand, package, and market to us. The anthropologist Elizabeth Chin conducted ethnographic research among young African American children in a poor neighborhood of New Haven, Connecticut, exploring the intersection of consumption, inequality, and cultural identity. Chin specifically looked at “ethnically correct” Barbie dolls, arguing that while they may represent some progress in comparison to the past when only white Barbies were sold, they also reinforce outdated understandings of biological race and ethnicity. Rather than dismantling race and class boundaries, the “ethnic” dolls create segregated toy shelves that in fact mirror the segregation that young black children experience in their schools and neighborhoods. Consumption provides us with a window into globalization, which we will learn more about in the Globalization chapter. Over the past several decades, as global capitalism expanded its reach into developing countries around the world, many people fretted that the growing influx of Western products would lead to cultural homogeneity and even cultural imperialism. Some argued that with every McDonald’s constructed, the values and beliefs of the West were being imposed on non-Western societies. However, anthropologists have systematically challenged this thesis by providing a more sophisticated understanding of local cultural contexts. They demonstrate that people do not become Westernized simply by buying Western commodities, any more than I become somehow more Japanese after eating at my favorite neighborhood hibachi restaurant. In fact, anthropological research shows that Western commodities can sometimes lead to a resurgence of local identities and an affirmation of local processes over global patterns. The anthropologist Mary Wesimantel researched how families adapt to changing economic circumstances, including the introduction of Western products into their indigenous community of Zumbagua, Ecuador. Once subsistence barley farmers, men from Zumbagua began to migrate to cities in search of work while the women stayed home to care for the children and continue to farm barley for home consumption. The men periodically returned home, bringing cash earnings and urban luxuries such as bread. The children associated this bread with modernity and city life, and they preferred to eat it rather than the traditional staple food of toasted ground barley, grown and cooked by their mothers. The children “cried” for the bread their fathers brought home. Yet, their mothers resisted their pleas and continued to feed them grains from their own fields because barley consumption was considered a core component of indigenous identity. This example illustrates the complex negotiations that emerge within families and communities when they are increasingly integrated into a global economy In other parts of the world, the consumption of Western goods can be used to cement social and economic status within local networks. John Osburg studied the “new elite” in China, the class of entrepreneurs who have successfully navigated the recent transitions in the Chinese economy since the early 1990s when private businesses and foreign investment began to steadily expand their reach in this communist country. Osburg found that the new elite do not constitute a coherent class defined by income level or occupation. Instead, they occupy an unstable and contested category and consequently rely on The anthropologist Sarah Besky researched Darjeeling tea production in India to better understand how consumer desires are mapped onto distant locations. In India, tea plantation owners are attempting to reinvent their product for 21st century markets through the use of fair-trade certification (discussed earlier in this chapter) and Geographical Indication Status (GI). GI is an international property-rights system, regulated by the World Trade Organization, that legally protects the rights of people in certain places to produce certain commodities. For example, bourbon must come from Kentucky, Besky explores how the meaning of Darjeeling tea is created through three interrelated processes: (1) extensive marketing campaigns aimed at educating consumers about the unique Darjeeling taste, (2) the application of international law to define the geographic borders within which Darjeeling tea can be produced, and (3) the introduction of tea plantation-based tourism. What the Darjeeling label hides is the fact that tea plantations are highly unequal systems with economic relationships that date back to the colonial era: workers depend upon plantation owners not just for money but also for food, medical care, schools, and housing. Even when we pay more for Darjeeling tea, the premium price is not always returned to the workers in the form of higher wages. Besky’s research shows how capitalism and market exchange shapes the daily lives of people around the world. The final section of this chapter explores the ways in which economic anthropologists understand and question structural inequalities in the world today. Humans are fundamentally social, and our culture is always shared and patterned: we live our lives in groups. However, not all groups serve the needs of their members, and some people have more power than others, meaning they can make the weak consent through threats and coercion. Within all societies there are classes of people defined by the kinds of property they own and/or the kinds of work they engage in. Beginning in the 1960s, an increasing number of anthropologists began to study the world around them through the lens of political economy. This approach recognizes that the economy is central to everyday life but contextualizes economic relations within state structures, political processes, social structures, and cultural values.63 Some political economic anthropologists focus on how societies and markets have historically evolved while others ask how individuals deal with the forces that oppress them, focusing on historical legacies of social domination and marginalization. What are the three modes of exchange?Later, Marshall Sahlins used the work of Karl Polanyi to develop the idea of three modes of exchange, which could be identified throughout more specific cultures than just Capitalist and non-capitalist. These are reciprocity, redistribution, and market exchange.
What is redistribution in sociology?In cultural anthropology and sociology, redistribution refers to a system of economic exchange involving the centralized collection of goods from members of a group followed by the redivision of those goods among those members. It is a form of reciprocity.
When you are consuming an object the process of taking possession of it is called?When you are consuming an object, the process of taking possession it is called appropriation.
What is the importance of economic anthropology?Economic anthropology studies how human societies provide the material goods and services that make life possible. In the course of material provisioning and during the realization of final consumption, people relate to each other in ways that convey power and meaning.
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