Economic SystemsEconomic Systems

Part IIPart II

Modes of Distributing GoodsModes of Distributing Goods

1.1. Reciprocity: the exchange of goods and Reciprocity: the exchange of goods and services, of approximately equal value, services, of approximately equal value, between two partiesbetween two parties

2.2. Redistribution: a form of exchange in Redistribution: a form of exchange in which goods flow into a central place, which goods flow into a central place, where they are sorted, counted, and where they are sorted, counted, and reallocatedreallocated

3.3. Market exchange: the buying and selling Market exchange: the buying and selling of goods and services, with prices set by of goods and services, with prices set by rules of supply and demandrules of supply and demand

ReciprocityReciprocity Generalized – a mode of exchange in which the Generalized – a mode of exchange in which the

value of what is given is not calculated and value of what is given is not calculated and repayment is not specified.repayment is not specified.

Balanced –a mode of exchange in which the Balanced –a mode of exchange in which the giving and receiving are specific as to the giving and receiving are specific as to the value of the goods and the time of their value of the goods and the time of their delivery.delivery.

Negative – a form of exchange in which the Negative – a form of exchange in which the aim is to get something for as little as possible. aim is to get something for as little as possible.

Ju/’hoansi DistributionJu/’hoansi Distribution

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

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

Barter and TradeBarter and Trade

Barter occurs when two or more partners from Barter occurs when two or more partners from different groups negotiate a direct exchange different groups negotiate a direct exchange of one trade good for another.of one trade good for another.

Neither fair nor balanced, it may involve hard Neither fair nor balanced, it may involve hard bargaining, manipulation, and outright bargaining, manipulation, and outright cheating.cheating.

Although in barter each party seeks to get the Although in barter each party seeks to get the best possible deal, both may negotiate until a best possible deal, both may negotiate until a relative balance has been found, and each relative balance has been found, and each feels satisfied at having achieved the better of feels satisfied at having achieved the better of the deal. the deal.

The Kula Ring The Kula Ring

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

The Kula Ring The Kula Ring

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

RedistributionRedistribution

In societies with a sufficient surplus to In societies with a sufficient surplus to support some sort of government, support some sort of government, goods in the form of gifts, tribute, taxes, goods in the form of gifts, tribute, taxes, and the spoils of war are gathered into and the spoils of war are gathered into storehouses controlled by a chief or storehouses controlled by a chief or some other type of leader. some other type of leader.

From there, they are handed out again. From there, they are handed out again.

Motives in Redistributing Motives in Redistributing IncomeIncome

The leadership has three motives in The leadership has three motives in redistribution: redistribution:

1.1. Gain or maintain a position of superiority Gain or maintain a position of superiority through a display of wealth and generosity.through a display of wealth and generosity.

2.2. Assure those who support the leadership Assure those who support the leadership an adequate standard of living by providing an adequate standard of living by providing them with desired goods.them with desired goods.

3.3. Establish alliances with leaders of other Establish alliances with leaders of other groups by hosting them at lavish parties groups by hosting them at lavish parties and giving them valuable goods.and giving them valuable goods.

Conspicuous ConsumptionConspicuous Consumption

A term coined by Thorstein Veblen to A term coined by Thorstein Veblen to describe the display of wealth for describe the display of wealth for social prestige.social prestige.

PotlachPotlach

A ceremonial event in which a village chief A ceremonial event in which a village chief publicly gives away stockpiled food and other publicly gives away stockpiled food and other goods that signify wealth.goods that signify wealth.

Here we see Tlingit clan members dressed in Here we see Tlingit clan members dressed in traditional Chilkat and Raven’s Tail robes during a traditional Chilkat and Raven’s Tail robes during a recent potlatch in Sitka, Alaska.recent potlatch in Sitka, Alaska.

Prestige Economy and Prestige Economy and Leveling MechanismLeveling Mechanism

Prestige Economy: creation of a surplus Prestige Economy: creation of a surplus for the express purpose of gaining for the express purpose of gaining prestige through a public display of prestige through a public display of wealth that is given away as gifts.wealth that is given away as gifts.

Leveling Mechanism: a societal Leveling Mechanism: a societal obligation compelling a family to obligation compelling a family to distribute goods so that no one distribute goods so that no one accumulates more wealth than anyone accumulates more wealth than anyone else.else.

Market ExchangeMarket Exchange

Buying and selling of goods and services, Buying and selling of goods and services, with prices set by rules of supply and with prices set by rules of supply and demand.demand.

Its critical attributes are:Its critical attributes are:– durabilitydurability– portabilityportability– divisibilitydivisibility– recognizabilityrecognizability– fungibility. fungibility.

MoneyMoney

Anything used to make payments for Anything used to make payments for other things (goods or labor) as well other things (goods or labor) as well as to measure their value; may be as to measure their value; may be special purpose or multipurpose.special purpose or multipurpose.

Visual CounterpointVisual Counterpoint

In many societies, the market is an important focus of social as In many societies, the market is an important focus of social as well as economic activity, as shown in the photo of a crowded well as economic activity, as shown in the photo of a crowded outdoor marketplace in Aswan, Egypt.outdoor marketplace in Aswan, Egypt.

In contrast,the packer pictured on the left works at an In contrast,the packer pictured on the left works at an Amazon.com distribution center in Fernley, Nevada, preparing Amazon.com distribution center in Fernley, Nevada, preparing orders purchased on the Internet.orders purchased on the Internet.

World Trade OrganizationWorld Trade Organization

Established in Established in 1995 and 1995 and headquartered in headquartered in Geneva, the WTO Geneva, the WTO is the only global is the only global international international organization with organization with rules of trade rules of trade among its 150 among its 150 member countries.member countries.

Informal EconomyInformal Economy

The production of marketable The production of marketable commodities that for various reasons commodities that for various reasons escape enumeration, regulation, or escape enumeration, regulation, or any other sort of public monitoring or any other sort of public monitoring or auditing. auditing.

Review on Wednesday, Chapters 7 and Review on Wednesday, Chapters 7 and 88

Writing Day on ThursdayWriting Day on Thursday– Use this time to work on your Ethnographic Use this time to work on your Ethnographic

paper and/or your Research Paperpaper and/or your Research Paper– I will be available in my office IB2324CI will be available in my office IB2324C

Ethnographic Paper due on Friday Ethnographic Paper due on Friday – Final copy should include cover page, 250 Final copy should include cover page, 250

word abstract, and 2-3 page paperword abstract, and 2-3 page paper– Spell check, proof-read and keep it uniform Spell check, proof-read and keep it uniform

in stylein style Quiz #3 on Friday, Chapters 7 and 8Quiz #3 on Friday, Chapters 7 and 8 Fill out Aryana Bates’ survey for our Fill out Aryana Bates’ survey for our

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