Economic anthroplogy

Question 1

Adam Smith and economy

Answer 1

Argues that if every individual member of society pursues their own interests, society as a whole will benefit (cap). The precondition for a society like this to exist is a transparent market and equal access to knowledge for all. Advocated for market regulation, preventing fraud, price agreements, monopolies, etc

Question 2

The invisible hand

Answer 2

Adam Smith’s concept: Mysterious force that makes people act in their own interests that ensures the optimal balance (equilibrium) between production, distribution and consumption. Producers and buyers all derive the optimum benefit from this

Question 3

Homo Economicus

Answer 3

Adam Smith’s concept
All human beings are rational maximisers of self interest.

Question 4

Critique Homo Economicus

Answer 4

Malinowski and Sahlins: In many non-western societies, people do not act in this manner (implying irrationalism). Thus an ethnocentric, western biased concept.

Question 5

Marcel Mauss and the gift

Answer 5

Giving - receiving - repaying. Gift making in societies is the glue that holds society together
because it establishes social relations. The gift is inalienable - you cannot give something to another person without giving some part of yourself to the person. The process of gift-giving is part of a chain of reciprocity.

Question 6

Gift and power relations

Answer 6

By giving someone a gift, you assert an influence. Power dynamics thus becomes a potential consequence of gift giving. Example: someone buys you a drink in a bar and you feel obliged to do something in return.

Question 7

Marshall Sahlins and his three types of reciprocity

Answer 7

1) Generalized reciprocity
2) Balanced reciprocity
3) Negative reciprocity

Question 8

Generalized reciprocity

Answer 8

Gift without expecting counter gift
No paying attention to the value of the gift
Not a maximization of self interest - care more about relationship with person than the value of goods
Examples: Buying someone a coffee, cooking someone dinner, parents doing favors for their children
You use objects to get close to people

Question 9

Balanced reciprocity

Answer 9

Spot exchange, but unequal value
Creates vague obligations - non quantifiable how much you owe each other
Examples: Ceremonial gift exchanges like Valentines, Christmas gifts
You use objects to get close to people

Question 10

Negative reciprocity

Answer 10

Need to be an exact value, spot exchange
Homo Economicus / Adam Smith logic
Example: Buying things in a shop
You use people to get to objects/things
Disclaimer: You can build relationships occasionally - how you interact with hair dresser, sponsorships and so forth

Question 11

Circles of reciprocity

Answer 11

-Generalized: Close kin
-Balanced: Close community (friends, colleagues)
-Negative: Strangers

Question 12

Kari Polanyi and his two types of economy

Answer 12

Sees economy as a system embedded in social relations (not autonomous)
Capitalist market economies.
“Primitive” precapitalist economies

Question 13

Capitalist market economies (Polanyi)

Answer 13

Dominated by market exchange. A recent in phenomenon in the history of humankind - happened through the industrial revolution in the 1850s onwards.

Question 14

“Primitive” precapitalist economies (Polanyi)

Answer 14

Dominated by reciprocity, redistribution, and householding.

Question 15

Commodity exchange

Answer 15

There is no focus on the individual or relationship between persons - rather on the object or material good

Question 16

Karl Polanyi’s three principles of the circulation of material goods

Answer 16

1) Reciprocity
2) Redistribution
3) Market exchange
Polanyi stresses that one form of distribution does NOT exclude another and all three can exist in one society.
Society also has an informal sector outside these dimensions- eg selling and buying drugs

Question 17

Reciprocity (Polyani)

Answer 17

Dominant principle of distribution in gift economics eg in egalitarian societies

Question 18

Redistribution (Polyani)

Answer 18

A central actor receives goods and commits himself to redistribute them. Hierarchical principle of distribution where the legitimacy of the actor is reinforced through the safety net he creates. Eg in South Korea where the government gave x amount of money to people monthly.

Question 19

Market exchange (Polyani)

Answer 19

Contractual relationship between the exchangers. Anonymous and abstract, impersonal form of interaction.

Question 20

Karl Polanyi’s two approaches to economy

Answer 20

Formalism and substantivism

Question 21

Formalism

Answer 21

Mainstream economic theory. Argues that actors take rational choices in terms of supply and demand etc. Core concepts: Capitalism, market exchange, legal transactions, homo economicus

Question 22

Substantivism

Answer 22

Economy seen as embedded in social relations. Argues that economics is a complex whole of production, distribution and consumption and the set of relationships and representations in which it is embedded. Core concepts: holistic, socially embedded, reciprocity, redistribution, social bonds, cultural relativist.

Question 23

The Four Spheres of Value

Answer 23

Home (generalized reciprocity)
Social sphere (balanced reciprocity)
The market (negative reciprocity and homo economics)
The state (rules and redistribution)

Question 24

Modes of subsistence

Answer 24

The way people provide for their livelihood. All are equally fine and respectable! This is NOT the same as modes of production

Question 25

Hunters/Gatherers

Answer 25

Mode of subsistence: Harvesting without cultivating or rearing
No or hardly any surplus.
(Semi-)nomadic.
Little material culture (but rich in immaterial culture)
Kinship based social organization
Political Organization: Band (‘horde’). Egalitarian.
Reciprocity based economy

Question 26

Horticulturalists

Answer 26

Mode of subsistence: cultivation (yam, taro, manioc, bananas, etc.).
Slash-and-burn/shifting/swidden cultivation.
No complex technology (simple tools)
Rich knowledge of vegetation and soil (domestication of plants).
Little surplus
Semi-nomadic.
Kinship based social organisation
Political organisation: Band (‘horde’) but also larger communities.
Egalitarian, but also Big Man (non-hereditary political status).
Reciprocity and redistribution based economy

Question 27

Agriculturalists

Answer 27

Mode of subsistence: horticulturalists with plough, draft animals, and manure.
Domestication of animals (mostly cattle).
Communal ownership.
Surplus exists
Political organisation: Chiefdom (tribal), hierarchical, hereditary leadership.
Specialisations: chiefs, priests, smiths, potters, etc.
Sedentary (larger communities).
Kinship based social organisation
Reciprocity and redistribution based economy

Question 28

Pastoralists

Answer 28

Mode of subsistence: domesticated animals (sheep, goats, cattle, camels, reindeer).
Surplus fluctuating.
Nomadic, or semi-nomadic (transhumance)
Kinship based social organisation
Political organisation: Chiefdom. Hierarchical, hereditary leadership. ‘Symbiosis’ with a sedentary population of agriculturalists
‘Warriors’: arduous relationship with the state; armed conflicts with other groups,
pastoralists and non- pastoralists alike.
Economic principles: in-group reciprocity and redistribution, market exchange
with other groups.

Question 29

Peasants

Answer 29

Mode of subsistence: Agriculture. Small landowners or sharecroppers, tenant
farmers.
Directed towards subsistence but with obligation to produce surplus (to pal
debts and taxes).
Part of overarching social structure - state, cities, market.
Sedentary.
Social organisation: dominated stratum of class society
Political organisation: (early) state (formation).
Economic principles: in-group reciprocity and redistribution, market exchange
with other groups.

Question 30

Industrial Society

Answer 30

Mode of subsistence: Industrial production. Also in agriculture. Peasants
farmers.
Large surplus (food waste during and after production).
Sedentary, urban.
Class based social organisation
Political organisation: State
Economic principles: Market dominant, redistribution through taxes

Question 31

Postindustrial Society

Answer 31

Mode of subsistence: working in knowledge, information, and service industries
Only a small part of the population active in production. Consumption is a driving force.
Surplus enormous: ‘waste’ of about everything.
Division of labour: education, specialisation.
Mobility & flexibility of employees.
Social organisation: Individualization, networks.
Political organisation: Supra-national state (?)
Economic principles: Market exchange (mostly online)