copyright © allyn & bacon 2008 economic systems (miller chapter 3)

Copyright © Allyn & Bacon 2008

Economic Systems(Miller Chapter 3)


The BIG Questions

What is economic anthropology? What are the five major modes of

production and their characteristics?


Introducing the Subfield of Economic Anthropology

Economic anthropology is the cross-cultural study of economic systems (p. 52)

• An economic system includes…• Livelihood (Production) – making goods or

money• Exchange – the transferring of goods or money

between people or institutions• Consumption – using up goods or money


Mode of Production The mode of livelihood / mode of

production is the main way of making a living in a culture. Also sometimes called a mode of subsistence or

subsistence strategy Methods a culture uses to stay alive – obtain food

and water Must be compatible with the natural resources

available and with the limitations of various habitats Social and political organization also influence how

technology is applied to the problem of staying alive


The Five Modes of Production

Foraging Horticulture Pastoralism Agriculture Industrialism/Informatics


Five Modes of Production

Foraging

Industrialism and the Information Age

Agriculture

Pastoralism

Horticulture


The Five Modes of Production Important to remember that all of the modes

of production require a sophisticated knowledge of the environment and seasonal changes in it No mode of production is “primitive” in the sense

of being simple and unsophisticated Modes of production should not be seen as a

progression from more “primitive” to “modern” No one mode of production is inherently

superior to another mode of production Each has its own benefits and drawbacks


Foraging Foraging is collecting food that is available in

nature by gathering, hunting, and/or fishing. (p. 52)

The main economic strategy for most of human history

Obtain most of their food from gathering rather than hunting

Today only 250,000 people support themselves using foraging primarilyLess than 0.005 % of the world population of 6

billionExample: San/Ju/’hoansi/!Kung peoples of

Southern Africa


Foraging Extensive strategy – a mode of

production requiring access to large areas of land and unrestricted population movement (p. 53)

Mobility is key! Maintains balance between resources

and lifestyle – is sustainable and very environmentally friendly Crucial resources are regenerated over

time


Two Major Types of Foraging


Temperate-Region Foragers

Example: San peoples of Southern Africa (including the Ju/’hoansi people, formerly referred to by outsiders as !Kung or the Bushmen)

No longer primarily foragers as their land has been taken from them


Ju/’hoansiTerritory


Ju/’hoansi Watering Hole


Circumpolar-Region Foragers

Example: Inuit (Eskimo) and other northern Canadian peoples

Lifestyle threatened by development and global warming


Social Characteristics of Foragers Small and Flexible Group Size

Typically fewer than 100 people Foraging supports smaller groups of people

than the other modes of production Egalitarian – classless society

No concept of private property in the sense of owning land that could be sold to someone else

Instead have rights to use land (use rights) that give certain kin groups priority access and are rarely denied to others – have social meaning rather than legal meaning

Sharing (especially of food) is key to survival


Social Characteristics of Foragers Division of labor based on gender

and age Men and women forage Men hunt Some overlapping gender roles – gender

roles flexible Genders still relatively equal in status and

in access to resources Both men and women have a great deal of

autonomy Differences in gender roles do not imply gender

inequalities


Social Characteristics of Foragers Modest needs that are met with

minimal effort Pretty impractical for a forager to want to

accumulate many material possessions Average weight of belongings under 25 pounds!

Work fewer hours than the average American – only 5 to 25 hours per week! Have plenty of leisure time to focus on social life

and spiritual needs Overall good health

Less likely to experience severe famines than farmers

Original affluent society (p. 55)


About 10,000 years ago… Humans first domesticate plants and

animals Had a huge influence on cultures – economic

arrangements, social systems, ideologies changed as a result of this

Allowed for the possibility of cultures to adopt other modes of production besides foraging Pastoralism, horticulture, and agriculture are all modes of

production based on the domestication of plants and/or animals.

Originally arose as a subsistence strategy of last resort Probably as population growth outstripped people’s

abilities to sustain themselves through food foraging


Pastoralism Pastoralism is mode of production based on

domesticated animal herds and the use of their products (p. 57)

Animals provides over 50% of group’s dietMostly milk and milk products, some meat and

other animal products as wellPastoralists trade with other groups to secure food

and goods they cannot produce Also an extensive strategy like foraging Requires movement of animals to new

pastureland for sustainability If movement is restricted, only then do you get

overexploitation of resources and overgrazing


Pastoralism Common mode of production in areas where

rainfall is limited and unpredictable and/or in areas that are cold, steep, or rocky

Existed for a long time in the Old World (Middle East, Africa, Europe, and Central Asia), less common in the New World More than 21 million people in Africa and Asia are

pastoralists Most popular animals pastoralists raise

throughout the world are… Sheep, goats, cattle, horses, donkeys, and camels


Social Characteristics of Pastoralists Sense of animals and household

materials as private property… but no sense of land as private property

that can be bought and sold Have use rights that regulate pastureland

and migratory routes Still relatively egalitarian, but…

Level of wealth, prestige, and political organization varies from group to group, often depending up on how many animals they have


Social Characteristics of Pastoralists

Division of labor based on gender and age Families and clusters of related families are

the basic unit of production Generally men herd Women process the herd’s products Children help in herding Little overlap between male and female

tasks Often patriarchical society – cultural emphasis

on masculinity, more prestige and power associated with males than females


Horticulture Horticulture is a mode of production

based on growing crops in gardens using hand tools (p. 55)

No fertilizers, no pesticides, no animals used to plow, no irrigation systems

Variety of foods grown, often in the same field: yams, bananas, maize, manioc, beans, etc. Mimics the diversity of the natural ecosystem Multiple crops are less vulnerable to pests and

diseases than a single crop


Horticulture Horticulturalist usually grow enough

food for their subsistence May also produce more a small surplus of

food for purposes such as inter-village feasts and exchange

Horticulturalists sometimes engage in some foraging as well, although the food from their garden is their main source of subsistence Yanomamo are a good example of this


Horticulture

Horticultural crop yields support denser populations than foraging Trade off is that horticulture is more labor

intensive than foraging Also an extensive strategy

Requirement for shifting cultivation and fallowing to provide sustainability

An efficient strategy Produces between 10 and 20 units of

energy for every 1 unit expended


Social Characteristics of Horticulturalists Sense of crops as private property…

but no sense of land as private property that can be bought and sold

Have use rights that regulate access to land – if you clear it, you can use it

Still relatively egalitarian, but… The production of some surplus goods

allows the possibility of social inequality in access to goods and resources


Social Characteristics of Horticulturalists Division of labor based on gender and age

A family forms the core work group Gender roles clearly defined

Can be patriarchical or matriarchical societies Iroquois – matriarchical – women cultivate maize and its

distribution and had huge decision making powers Yanomamo – patriarchical – men are dominant decisions

makers even though both men and women have a large economic role

Children work more in horticultural groups than any other type of mode of productioncaring for siblings fetching fuelhauling water


Example: Precolonial Iroquois Region in North America


Example: Yanomamo region in Amazonian Brazil


Agriculture Agriculture is a mode of production that

involves growing crops on permanent plots with the use of plowing, irrigation, and fertilizer (p. 58)

It is also called farming Intensive strategy of production

– An intensive strategy (intensification) involves the use of techniques that allow the same plot of land to be used repeatedly without losing its fertility (p. 58)

• More labor, use of fertilizers, control of water supply, use of animals

Typically a larger surplus is produced in agricultural societies than with horticulture


Social Characteristics of Agriculturalists Live in permanent settlements

Have to stay close to the fields to take care of them Have a higher population density

Larger surplus food can support larger population Growth of urban centers / urbanization

Have craft specialization Because of the larger surplus produced, not

everyone has to be a farmer A small group of people can produce food for the entire

society Can have full-time traders, carpenters, blacksmiths,

artists, warriors, teachers, lawyers, etc., etc. Specialized social and political institutions

to deal with the increased complexity of specialization and the larger population


Social Characteristics of Agriculturalists Have private ownership of land

Land can be bought and sold Social institutions such as police and

private property law exist to protect property rights

Formalized rules of land inheritance Class distinctions

Marked inequalities develop There are those who have access to

resources/land and those who do not Different types of specialization work carry

more prestige than others


Three Major Types of Agriculture

Family farming Industrial capital agriculture Industrial collectivized agriculture


Family Farming Production is geared to support the

family Excess production is used to produce

goods for sale – links family farming to the larger market economic system

Most often practiced in 2nd or 3rd world countries Mexico, India, Poland, Italy, Bangladesh,

and many, many others More than 1 billion people throughout the

world use family farming as their mode of production


Family Farming Labor inputs

Kin-based Family is the basic unit of production Gender and age are important in organizing

work About ¾ of cultures men perform the bulk of

agricultural labor in the fields Women usually responsible for managing the domestic

domain ¼ of cultures an exception to this

Balanced work roles – Zapotec Indians of Oaxaca Women farmers in southern India and Southeast Asia

wet rice agriculture Women have higher status in these contexts

Children’s roles in agricultural societies range greatly depending on the cultural context


Family Farming Capital inputs (amount spent on

fertilizers, machinery, animals to plow, etc.) Low-Moderate

Sustainability High


Industrial Capital Agriculture Produces goods solely for sale Often farm is owned by a corporation rather

than a family – is a corporate farm Practiced in 1st and 2nd world countries

U.S., Canada, Germany, Russia, Japan, India, Brazil, China

Labor inputs Hired, impersonal Often seasonal need for labor

Capital inputs (amount spent on processed fertilizers, more elaborate machinery, etc.) High Can produce food for a vast number of people


Industrial Capital Agriculture Sustainability

Low Efficiency

Low – requires more energy input than it yields

Has a variety of social effects, not all of them positive


Industrial Collectivized Agriculture Basically an agricultural cooperative

Common/joint ownership of land, technology, and goods produced

Pooling of labor Pooling of income Democratic rule – collective decision making

Goal is to provide greater economic equality and a greater sense of group welfare than is possible under competitive capitalism

Have some cooperatives in Russia, Eastern Europe, China, Tanzania, Ethiopia, and Nicaragua – have had varying degrees of success


Industrial Collectivized Agriculture

Labor inputs Communal

Capital inputs Moderate-High

Sustainability Low-Moderate


Suburban Farming in Japan: a Blend of Family Farming and Industrialized Farming


Industrialism and the Information Age The production of goods through mass

employment in business and commercial operations

The creation, manipulation, management, and transfer of information through electronic media

Goods produced to satisfy consumer demand Employment increases in manufacturing and

service sectors, few people engaged in farming


Industrialism and the Information Age Formal and informal sectors (p. 61)

Formal sector – salaried or wage-based work registered in official statistics

Informal sector – work that is not officially registered and is sometimes illegal


Industrialism and the Information Age Still have some division of labor based

on age and gender (especially in the private sphere), but exactly what those roles are vary in the society

Modern technologies (along with demands for increased “productivity” and levels of consumption) can make some labor divisions based on age and gender less relevant.

Much of the division of labor is class based rather than age or gender based


Bangalore, India female construction workers


Thaichild laborincorporations

Are about 15 million child laborers in South Asia alone, including some as young as 4 years old.

U.S. imports $100 million worth of products manufactured by children abroad.


Overview of the Five Modes of Production


Mode of Exchange Exchange is the transfer of something

that may be material or immaterial between at least two persons, groups, or institutions (p. 66)

Exchange is an economic transaction, but it is just as much a social and political act as well

Mode of Exchange The dominant way, in a culture, of

transferring goods, services, and other items between and among groups (p. 52)


Two Distinct Ends of Exchange Continuum Balanced exchange

A system of transfers in which the goal is either immediate or eventual balance in value (p. 67)

Types of balanced exchange include… Generalized reciprocity

Gift giving Expected reciprocity Redistribution

Unbalanced exchange A system of transfers in which one party attempts

to make a profit (p. 67)

Types of unbalanced exchange include… Market exchange Gambling Theft Exploitation


Generalized Reciprocity

A transaction that involves the least conscious sense of interest in material gain or thought of what might be received in return and when (p. 67)

Exchange in which the value of what is given is not calculated nor is the time of repayment specified


Generalized Reciprocity

Creates or reinforces social ties between the giver and the receiver Fulfills social obligations Cultural traditions dictate the manner and

occasion of exchange Pure gift giving also falls under this

category An extreme form of generalized reciprocity


When do we most often see generalized reciprocity?

Can you think of any examples of generalized reciprocity?


Generalized Reciprocity Occurs most often among close kin or people

who otherwise have very close ties with one another Random gifts to close family and friends Also giving to a charity/institution you feel strongly

about/connected to Among foraging societies

Live among close family and friends! Also an adaptive strategy which minimizes conflict

and serves to lend some predictability to an often uncertain environment People give to others when they have the means and

can count on receiving from others in time of need A form of social security! A social safety net


Generalized Reciprocity – Ju/’hoansi meat sharing

These Ju/’hoansi are cutting up meat that will be shared by others in the camp.

Food distribution practices of such food foragers are an example of generalized reciprocity.


Expected Reciprocity The exchange of approximately equally

valued goods or services, usually between people of roughly equal social status (p. 67)

Sometimes called balanced reciprocity Involves an understanding about the

time period in which the exchange will be completed


When do we most often see expected reciprocity?

Can you think of any examples of expected reciprocity?


Expected Reciprocity Gifts among peers/friends/acquaintances at

birthdays or Christmas that are expected to be reciprocated in kind A friend buys you a drink and then you are

expected to do so at a different point in time Can be a little less personal than generalized

reciprocity Might be done with other more distant villages

rather than just your own kin Still the goal is to create, maintain, and

solidify social and political relationships But if the exchange is not reciprocated with

something of equal value, the social relationship will likely break down


Kula

• Practiced in the Trobriand Islands and surrounding islands


Kula

• The ceremonial trading of shell necklaces and armbands in the Kula ring encourages trade throughout Melanesia.


Kula

• In Melanesia, men of influence paddle and sail within a large ring of islands in the southwestern Pacific off the eastern coast of Papua New Guinea to participate in the ceremonial trading of Kula shells, which smoothes trade relations and builds personal prestige.


Other example of exchange reciprocity in the Trobriand Islands?


Yams and Banana Leaves

• Trobriand Island men loading yams into a yam house

• Males give yams to a sister’s/daughter’s husband

• Later (usually after a death of a close family member), an equivalent amount of banana leaves will be exchanged to repay this social debt


Redistribution A form of expected reciprocity in which one

person collects goods or money from many members of a group and provides a social return at a later time (p. 68)

Involves a central place where goods are collected and then redistributed by a chief or some other type of leader

Chief/leader usually gains great prestige and wealth In return the chief/leader redistributes goods to the

populace in order for them to maintain an adequate standard of living

Chief/leader provides political leadership, establishes alliances with outsiders, etc.


When do we most often see redistribution?

Can you think of any examples of redistribution?


Redistribution Taxes!!

I give a percentage of my income/goods/property to the government or a chief

A portion of what I give goes to support the government/chief

Rest is redistributed in either… Cash

Social security payments, welfare, unemployment, government loans, subsidies to businesses

Services Military defense, law enforcement, food and drug

inspection, highway construction, education/schools, etc.)


Redistribution Basseri

Basseri give chief some of their sheep and butter (taxes)

A portion supports the chief’s lavish lifestyle In return the chief…

Gives generous gifts to tribesmen Adjudicates disputes Negotiates yearly travel patterns and use of

grazing lands Throws lavish feasts for chiefs of other tribes and

important political leaders of Iran to maintain civil relations


Redistribution Potlatch

Practiced by Pacific Northwest native American cultures Including the Kwakwaka’wakw (Kwakiutl)

A public feast in which guests are invited to eat and receive lavish gifts from the hosts (p. 60)

More a chief gives away at a potlatch, the higher his status rises and the more his guests are indebted to him

Chief gives boastful speeches about his wealth, generosity, and glorious ancestors

In the future when that chief’s village might face shortages, a chief in a neighboring village reciprocates by throwing a potlatch


Tlingit Potlatch


Redistribution Potlatch

Is an example of a leveling mechanism A leveling mechanism is a cultural obligation compelling

prosperous members of a community to give away goods, host public feasts, provide free service, or otherwise demonstrate generosity so that no one permanently accumulates significantly more wealth than anyone else

Greater wealth brings greater social pressure to spend and give generously (p. 64)

Value collective well-being over individual self-interest Reduce social tensions among relatives, neighbors, and

fellow town folk Important to the long-term survival of traditional communities

Another example of a leveling mechanism is the Mayan cargo system


Market Exchange

Market exchange is the buying and selling of commodities under competitive conditions in which the forces of supply and demand determine value

Is a prominent form of unbalanced exchange One or both parties in the transaction

attempt to make a profit


Market Exchange

The buyer and seller may or may not have a personal relationship

The buyer and seller may or may not be social equals

Market exchanges still involve social interactions, but… The market exchange is not as likely to

generate social bonding as the other modes of exchange


Market Exchange

Many market transactions take place in a marketplace A marketplace is a physical location in

which buying and selling occur (p. 68)

Range from informal, small stands that appear in the morning and disappear at night to huge multistoried shopping centers Periodic markets

Occur on a regular basis but with no permanent physical structure

Permanent markets Built structures situated in fixed locations


Informal Street Marketing in Kingston, Jamaica


Regular (weekly) market in Italy: vegetables are labeled to indicate where they were grown


Regular (Weekly) Market in China


Tsukiji Fish Market – Permanent Market in Tokyo


Permanent Market in Alexandria, Egypt


Mall of America – Permanent Market in Minnesota


Market Exchange Traditional market exchange

Based on face-to-face bargaining Typically vendors and/or their family

members produced the goods they are selling, thereby adding a degree of personalization to the transactions Traditionally exchanging for goods that cannot

be produced by the individual/family themselves Often very festive and colorful

May have entertainment, feasting, gathering places for renewing friendships, etc.

Sales do not necessarily involve money Goods may be directly exchanged through some

form of barter among the specific individuals involved


Traditional Market Exchange


Market Exchange Market exchange in industrializing and

industrial societies Often based on fixed prices May be based on face-to-face transactions

in physical marketplaces or faceless transactions in a virtual, internet marketplace

Typically vendors do not produce the goods they are selling, thereby adding a degree of depersonalization to the transaction


Market Exchange Market exchange in industrializing and

industrial societies Sales usually involve money

Money is something used to make payments for other goods and services as well as to measure their value

Characteristics of money Durable Transportable Divisible Recognizable Interchangeable

…or even formal credit Involves payment over time


Market Exchange in Post-industrial Society


Gambling Gambling is the attempt to make a profit

by playing a game of chance in which a certain item of value is staked in hopes of acquiring the much larger return that one receives if one wins the game (p. 70)

Ancient practice Common cross-culturally Examples include…

Sports betting Football Horse racing

Casinos Stock market

“Casino capitalism”


Theft Theft is taking something with no

expectation or thought of returning anything to the original owner (p. 70)

The opposite of the pure gift Motivated by need or greed Often difficult for anthropologists to study

because of informed consent and may be dangerous to study as well


Exploitation Exploitation is getting something of

greater value for less in return Often a persistent relationship over time Examples include…

Slavery Exploitation of child labor Exploitation of migrant labor

Federal H-2A program – Temporary agricultural workers in the U.S.

Critics have called this “rent-a-slave”


Modes of Consumption

Cross-cultural basic consumption needs Food, beverages, clothing, and shelter,

tools Industrialized contexts

Most consumption depends on having access to money or credit

Heating, air conditioning, computers, luxury goods


Modes of Consumption

Mode of consumption is the dominant way, in a culture, of using up goods and services (p. 52).

They are related to modes of production Consumption has two senses

Input – eating or other ways of using things (i.e., eating a sandwich)

Output – spending or using resources to obtain those things (i.e., spending money to buy a sandwich)


Modes of Consumption Two contrasting modes of

consumption (p. 63)

Minimalism Emphasizes simplicity Characterized by few and finite (limited) consumer

demands Involves an adequate and sustainable means to

achieve them Characteristic of foragers and to some degree

among pastoralists and horticulturalists Personalized consumption – everyone knows

where products came from and who produced them (p. 64)


Modes of Consumption Two contrasting modes of

consumption (p. 63)

Consumerism People’s demands are many and infinite Means of satisfying needs are insufficient Resources become depleted in an effort to satisfy

the needs Characteristic of the U.S. and other industrialized

or industrializing countries Spread through globalization Depersonalized consumption – consumers do not

know who made the products or where they came from, often makes it more possible for workers to be exploited


Consumption Microcultures

Class Gender “Race”/Ethnicity

Can you think of any examples?


Consumption Microcultures Class

Conspicuous consumption – showy consumption patterns and displays of wealth for social prestige Mansions, private jets, expensive jewelry, etc. Meant to impress others, distinguish themselves from

the lower class Gender

Kuru epidemic among the Fore people of Papua New Guinea – 1950’s-1970’s

Scarcity of pigs – cannibalism Women affected most, less access to pig meat

(p. 65)

“Race”/Ethnicity About 75% of white families in the U.S. own

homes, 48% of black and Hispanic families in the U.S. own homes


Globalization and Changing Economies Lure of western goods/foods

Gives people access to nifty goods/foods they never had access to before

May become dependent on items or they may lead to loss of some traditional activities

Negatively affected health of a variety of cultures from the foragers of the Amazon to the countries of the former Soviet Union

Enduring but changing traditions Potlatching – less planning, different types of gifts,

etc. Increased use of credit cards / formal credit

Has both pros and cons


Globalization and Changing Economies Failing to overcome cultural biases and

understand other cultures’ economic systems can have serious economic and social consequences, especially in this era of globalization When there is no understanding of the

local culture and economic systems, international development plans which seek to increase incomes and the health of local populations generally fail


Globalization and Changing Economies Failing to overcome cultural biases can have

adverse consequences for first-world corporations as well that try to market their products in developing nations Gerber baby food

Africa Typically place pictures of what is contained in the food on

the label since many people cannot read So what does a cute baby on the label say to them?

Perdue chickens Mexico

“It takes a strong man to make a tender chicken” was mistranslated into Spanish as “It takes an aroused man to make a chicken affectionate.”


The BIG Questions Revisited

How are modes of production related to consumption and exchange?

How are production, consumption, and exchange changing in contemporary times?

copyright © allyn & bacon 2008 economic systems (miller chapter 3)

Documents

copyright allyn bacon

money slide

alive slide

time slide

livelihood production

foraging foraging

major modes of production

modes of production