Economic Economic Anthropology: Anthropology:

Systems of Systems of ExchangeExchange

Reciprocity, Redistribution, Reciprocity, Redistribution, Market TransactionsMarket Transactions

Distribution: Exchange Distribution: Exchange RelationsRelations

• Once produced, goods and services must be Once produced, goods and services must be distributeddistributed

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

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

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

• Market exchange:Market exchange: buying and selling 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 Expects a red necklace of equal

value in returnvalue in return• Promissory gifts are made until Promissory gifts are made until

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

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

• ReallocatedReallocated• Classic example: Potlatch Classic example: Potlatch

of Northwest Coast(see of Northwest Coast(see picture)picture)

• 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