7.1 Economies: Two Ways to Study Them
3 min read•june 24, 2024
offers a unique lens on how cultures shape economic behaviors. It explores diverse systems like gift-giving and barter, considering cultural norms and non-market exchanges. This approach contrasts with traditional economics' focus on market-based models and rational decision-making.
Anthropologists take a holistic view, examining how economics intertwines with other aspects of society. They study how social groups, power dynamics, and cultural contexts influence economic practices. This broader perspective reveals the rich diversity of across different societies.
Economic Anthropology and Traditional Economics
Economic anthropology vs traditional economics
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- Economic anthropology studies economic behavior and systems within cultural and social contexts focuses on how economic practices are influenced by cultural norms, values, and beliefs examines the diversity of economic systems across different societies (gift-giving, barter) considers non-market exchanges and informal economies (, household production)
- Traditional economics primarily focuses on market-based economies and rational decision-making assumes universal principles of supply, demand, and utility maximization emphasizes mathematical models and quantitative analysis tends to overlook cultural factors and non-market exchanges
Universalist and normative perspectives
- Universalist perspective assumes that economic principles and behaviors are universal across all societies seeks to identify common patterns and laws governing economic activities (supply and demand) tends to overlook cultural differences and unique economic practices ( ceremonies, )
- Normative perspective recognizes that economic systems and behaviors vary across cultures emphasizes the importance of cultural context in shaping economic practices explores how cultural norms, values, and beliefs influence economic decision-making (taboos, religious beliefs) acknowledges the diversity of economic systems and their adaptations to specific environments (, )
Anthropological Approach to Economic Systems
Holistic approach in economic anthropology
- Diversity recognizes the wide range of economic practices and systems across different societies explores how economic activities are adapted to specific cultural and environmental contexts (, nomadic pastoralism) examines the coexistence of various forms of exchange, such as , , and (, tribute, trade)
- Holism studies economic behavior as part of a larger social and cultural system considers the interconnections between economic practices and other aspects of society, such as kinship, religion, and politics (, potlatch ceremonies) analyzes how economic activities are embedded within social relationships and institutions (family businesses, community cooperatives)
- Cultural context emphasizes the importance of understanding economic behavior within its specific cultural setting examines how cultural norms, values, and beliefs shape economic decision-making and practices (taboos, gender roles) explores the symbolic and cultural meanings attached to goods, services, and economic transactions (sacred objects, prestige items)
Social dynamics of economic practices
- Social groups examines how economic activities are organized and carried out by different social groups, such as households, clans, or communities (extended families, age-sets) analyzes the and resource allocation within and between social groups (gender roles, specialization) explores how social relationships, such as kinship or gender, influence economic roles and responsibilities (inheritance patterns, marriage alliances)
- Power dynamics investigates how power relations and hierarchies shape access to resources and economic opportunities (land ownership, social stratification) examines the distribution of wealth and resources among different social groups and individuals (elites, marginalized groups) analyzes how economic practices can reinforce or challenge existing power structures within a society (, social mobility) explores the role of political institutions and decision-making processes in shaping economic policies and practices (taxation, resource management)
Economic systems and modes of production
- Economic systems refer to the ways societies organize production, distribution, and consumption of goods and services
- describe the specific ways in which societies produce goods and services, including the technologies, social relations, and division of labor involved
- Division of labor refers to the specialization of tasks and roles within an economic system, often based on factors such as gender, age, or social status
- , a fundamental concept in economics, influences how societies allocate limited resources and make economic decisions
Key Terms to Review (23)
Barter System: The barter system is a method of exchange where goods or services are directly traded for other goods or services without the use of money. It is one of the oldest forms of economic exchange and predates the development of monetary systems.
Bridewealth: Bridewealth is the payment made by the groom or his family to the bride's family upon marriage. It is a common practice in many cultures and is closely tied to the concepts of marriage and family structures across societies.
Bronislaw Malinowski: Bronislaw Malinowski was a renowned Polish anthropologist who is considered a pioneer in the field of ethnography and participant observation. His groundbreaking work in the early 20th century laid the foundation for modern anthropological research methods and the understanding of cultural dynamics.
Caste Systems: A caste system is a social hierarchy in which people are born into a social standing that they cannot change, typically based on family lineage. It is a rigid system of social stratification that divides people into hereditary groups with limited occupational and social mobility.
Division of Labor: Division of labor refers to the specialization of tasks and responsibilities within a group or organization, where individuals or subgroups focus on specific roles or activities to increase efficiency and productivity. This concept is central to the study of economies, social structures, and the evolution of complex societies.
Economic Anthropology: Economic anthropology is the study of how different cultures and societies organize their economic activities, including the production, distribution, and consumption of goods and services. It examines the social, cultural, and political factors that influence economic behavior and decision-making within a given context.
Economic Systems: An economic system refers to the combination of the various institutions, agencies, and activities involved in the production, distribution, and consumption of goods and services in a particular society. It encompasses the ways in which a society organizes and allocates its resources to meet the needs and wants of its members.
Formalist Approach: The formalist approach in the study of economies is a theoretical perspective that focuses on the formal, mathematical, and quantitative aspects of economic systems. It emphasizes the analysis of economic structures, models, and patterns rather than the social, cultural, or historical context in which they operate.
Gift Economy: A gift economy is an economic system in which goods and services are given without any explicit agreement for immediate or future rewards. It is based on the voluntary exchange of gifts rather than market-driven transactions.
Horticulture: Horticulture is the science and art of cultivating and managing gardens, orchards, and nurseries. It encompasses the growing of fruits, vegetables, flowers, and ornamental plants for both commercial and personal purposes. Horticulture is a distinct field within the broader discipline of agriculture, focusing on the intensive production and care of high-value crops.
Karl Polanyi: Karl Polanyi was an economic historian and social philosopher who challenged the dominant economic theories of his time. He is best known for his critique of the idea of the 'self-regulating market' and his analysis of the social and political implications of economic systems.
Kula Ring: The kula ring is a complex system of ceremonial exchange of valuable objects among communities in the Trobriand Islands of Papua New Guinea. It involves the reciprocal exchange of two types of valuables, armshells and necklaces, which circulate in opposite directions around the ring.
Market Exchange: Market exchange refers to the voluntary trade of goods and services between buyers and sellers in an economic system. It is a fundamental mechanism through which individuals and businesses acquire the resources they need to satisfy their wants and needs.
Modes of Production: Modes of production refer to the different ways in which societies organize the production and distribution of goods and services. It encompasses the technological, social, and economic factors that shape how a society produces and exchanges resources to meet its needs.
Pastoralism: Pastoralism is a mode of subsistence that involves the raising and herding of livestock, such as sheep, goats, cattle, or camels, as the primary means of obtaining food and other resources. It is a distinct economic and social system that has played a significant role in the development of many societies around the world.
Patron-Client Relationships: Patron-client relationships refer to a type of social and economic exchange where a patron, typically a person of higher status or influence, provides resources, protection, or opportunities to a client, who in turn offers loyalty, labor, or other services to the patron. These relationships are often characterized by an unequal power dynamic and a sense of mutual obligation between the parties involved.
Potlatch: Potlatch is a ceremonial feast practiced by certain Native American cultures, particularly those of the Pacific Northwest, in which wealth is ceremoniously distributed or destroyed as an expression of wealth, status, and prestige. It is a key concept in understanding the economies and exchange systems of these societies.
Reciprocity: Reciprocity is the principle of exchanging things with others for mutual benefit. It involves a mutual exchange of goods, services, or actions, where both parties provide something to the other and receive something in return.
Redistribution: Redistribution refers to the process of reallocating or transferring wealth, income, or resources from some individuals or groups to others, often with the goal of reducing economic inequality and providing a more equitable distribution of resources within a society.
Scarcity: Scarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It is the core concept that drives economic decision-making and the need to make choices about how to allocate resources efficiently.
Slash-and-Burn Agriculture: Slash-and-burn agriculture is a traditional farming method where vegetation is cut, dried, and burned to clear land for temporary cultivation. This practice is often used in tropical and subtropical regions with poor, nutrient-depleted soils, as the ash provides a temporary nutrient boost to the soil before it becomes depleted again.
Subsistence Farming: Subsistence farming is an agricultural practice where farmers grow crops and raise livestock primarily for personal consumption rather than for commercial sale. It is a type of economy focused on producing enough food and other necessities to meet the basic needs of a household or community, with little or no surplus for trade.
Substantivist Approach: The substantivist approach in the study of economies is a perspective that emphasizes the social, cultural, and institutional factors that shape economic systems, rather than viewing the economy as a purely rational, self-regulating mechanism. This approach challenges the assumptions of the formalist approach, which treats the economy as a set of universal laws and principles.