Economics – Exchange Systems

• Production, consumption, and exchange• Sall-scale “moral economies” vs. Western economics

– Reciprocity & redistribution vs. market exchange– Relationships & generosity vs. maximization & competition– Group solidarity & cooperation vs. individual gain

What is Exchanged?

• Material goods– Food, hxaro items, pigs

• Knowledge, information • Symbolic goods

– Myths, rituals, magic spells, styles• Labor

– Barn-raising, agricultural labor– ‘Moral economy’ – trust, sharing

• Money– Shells, salt, cattle, furs, yams, coins

• People– Slaves– Marriage

Modes of Exchange

• Reciprocity• Redistribution• Market Exchange

Reciprocity• Generalized

– No expectation of immediate return– Sharing among foragers– Parents and children, charity– Moral code: generosity, love

• Balanced– Expect return in future– Creates obligations– Moral code: equivalence, equity

• Negative– Best deal– Cheating, theft– Moral code: hostility, taking advantage

Redistribution

• Collection by central authority• Big man

– Self made, lead by example– More egalitarian, less centralized– Melanesia, New Guinea– E.g. Kaoka, Kawelka (Ongka)– Moka– Prestige, obligations

• Chiefdom– Hierarchical– Inherited status– E.g. Kwakiutl– Potlatch

Kwakiutl Potlatch

• Sociopolitical functions– Politics– Allocation of resources– Resolve disputes– Alliances– Stability

Redistribution

• Mechanisms for distributing goods & services• Prestige economies

– Give away wealth fame & status• Reciprocity and redistribution

– Moral economies• Social obligations

– Create social networks• Moral code: obligation, support common good

Market Exchange

• Goods & services bought & sold• Use of currency/money or barter• Value determined by supply and demand• Motivation

– Economic vs. social• Least personal• Generates inequalities• Moral code: self interest• Land & labor become commodities

– Use rights vs. private ownership– People sell their labor - Worker becomes commodity– Need redistribution in capitalist systems

• Informal sector