Caritas and The Reconceptualiztion of Money in Romania

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*Caritas’: And the Reconceptualization of Money in Romania Katherine Verdery Anthropology Today, Vol. 11, No. 1 (Feb., 1995), 3-7. Stable URL: http flinksjstor.orgsici?sici=0268-540X%28 199500244291 129A 1%3C3"IAGI7ATROM%IE2.0,CO%IB2-G Anthropology Today is currently published by Royal Anthropological Institute of Great Britain and Treland. Your use of the ISTOR archive indicates your acceptance of ISTOR's Terms and Conditions of Use, available at flip: feworwjtor org/aboutterms.htmal. ISTOR's Terms and Conditions of Use provides, in par, that unless you fave obtained pcior permission, you may not dowaload an cnt isus of @ journal or multiple copies of articles, and you may use content inthe ISTOR archive only for your personal, non-commercial uss. Please contact the publisher cegarding any further use of this work. Publisher contact information may be obtained at bhupsforw.jstoc.org/joumals/tai. html. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transtnission. ISTOR is an independent not-for-profit organization dedicated to creating and preserving.a digital archive of scholarly journals. For more information regarding ISTOR, please contact jstor-info@umich edu. hup:thrwwjstor.orgy ‘Wed Feb 11.03:48:04 2004 |e “Chrsinty and teh neopologet-ungabshes ape by the presen wie, piven othe Newari of Ciisian Andwepolagsts, AAA Artal Mecing, New ‘cleans, (930. 2 Ch interview with Willam Mecifiele enioe setlopologut a the Sue Insite of Lincs, RAP 5, Dens (58 ad eodogcanepndnce a 3, 5 These examples ate dean Storm paps by, cepeciely, ‘Kara Poewe, Dal Woitetan Ti Peas alah Backer 4, utzapolagins 2d Misioaries: Brothers ucdec he Skin. ‘Max (48.25, 1990: pp 58-601 SFr Advan Basa of the Mision Csboique de Hin, ‘Carsecoon is aabably ce best kxowa ving British anieapotonie-missionsy. 6. The Asyual Meeting programne as 2 whole was dedicated othe merories of Gia Fioad, Myrna Mack. Ruth Fst Salvo ant Datad Websteg, wha “have niente ves 0 pratet the human sights afte pepe they have lived ith 7 "Antopoogical inthe sense of ealtelantrapalo. “Tere is als, wa the acon oF Chistian toi, atcine wadiion of 'anchzopcogy’ of which euerhch the mee ely knoe repeeentative 1 was presi, the Inter sete thal the Pope sid recently i Spey “an consinced tat a isake in anaropalgy ia the rt oF the Glue of sclery co understand chur weting ad the tee ole of women (The Taney, 20 Taruary 1995) ‘Caritas’ and the reconceptualization of money in Romania KATHERINE VERDERY Kaerve Vrdery has ‘arned ou several fd projec Romania er hepa ety year. Her aes prjece resale “Trnaslvapian Vilegers “Three Centres of Plies, Beonome, and Ethrie hinwe 0. 7 CalformaP. 1983). saci istry of ethnic Pelanone Transivanan comma Her second dont, Nenana eaiony des Socal: Meaty nd Cara okie vo Ceamsesci's Romania WieafCalferma P 1981), was bases a bray research aed ters vik Reman nelectals the relations beeen ‘neler aod he Conant Pat as ooh iced the “natnal ed She ie row working on tir by abo he ett af landed rapery felling the 1989 ‘eval’ wing her repair regecupasions are reatonaliom pacers ond the nave of vce Among the most fascinating new sites for anthropologi- cal investigation are the transforming societies of the former socialist tloc.' They are veritable laboratories for alt manner of subjects, including the nature of states and theie relationship to nationalism, the redefinition of property rights, dhe decomposition of “laifundia’ asin post-colonial Latin America and post-feudal Eveope, and the transformation of class structures. In addition, they are host to 2 new variant of something anthro- pologists have been studying in other parts of the globe Ter decades: changed cultural conceptions that secam- ‘pany the increasing presence of capitalism ané markets in formerly ron-capitalist, non-market contexts, These changed conceptions affect everything from people's ideas about time, self and work to their understandings ‘of money and comniodities ‘The present essay deals with one way in which people in formerly socialist Romania began Ieataing 60 think differently about money and ‘the ecocomy". Ic is, 4 pyramid scheme called ‘Caritas’, a scheme that achieved astonishing proportions between its inav uration in Transylvania in April 1992 and its collapse two years later. One of 2 large aumber of such schemes that agpeared not just jn Romania but in Russia, Slovs- ia, Bulgaria, and many ather countries in the region after 1999, Caritas surpassed these im magnitude, pacily because of iis special connections with the 1a tionalist Party of Romanian National Unicy (PRNU), hhcaded by Gheorghe Funar. As mayor of the Transylva- tian city of Cluj, where Carites set up its headquarters soon afier its founding,” Funar openly welcomed its ‘patron’, loan Stoica, and rented him space right in city hall. This location helped build credibility, as many de- ‘ositors assured me. Among Funar’s motives in suppor- ting Caritas were his auempc to gain greater visibility and more financial resources for his party, which was at the time seeking greater leverage within Romania's fovemmgcealiton Caritas drew its appeal fom ies promise to repay de- positors their investment eightfold within three months, ‘This possibility axtracted numerous depositors because ‘with inflation then running at 250-300%, people's sav- ings were becoming worthiess while their salaries fel, ‘eve further behind the. increased cost of living. For these reasons, Caritas grew ta encompass people from, all across Romania; for a time, is owner Stoica was beter known and more popolar than any other figure in Romanian public life. i ig difica to get an adequate sense of the scheme’s ampli. Estimates vary greatly wih respect tw both the number of people involved in it from two to eight milion, and free 10% of the population 20 as many as 50 of Romanian households), and the mount of morey tied up in i Cain, according tthe president of the Romanian National Bark, may have been as high 36 oeethird of the country's liquid reserves ut was in any case of the order of billions of dollars)? Even if we accept conservative estimates, however ~ 209% ofall Romanian households, and about 2 milion depasicrs ~it was a major phenomenon Anything of such magnitude is evidently entangled in many diferent aspects of the process of transforming socialist societies. Elsewhere J have suggested that CCantas ard similar schemes ace a vehicle through whieh the ott elite and is sewer politcal allies concen: crate the dispersed capital of the Romanian population inno tee own hands, dus furthering their enivenckment as a new ‘bourgeoisie’. (In recognition of the ongoing political connections of these groups, eal che ‘entre= ‘ratchiks’ in a post socialist “oourgecsseracy’*) Here 1 will concentale on a different aspect: the tole of Caritas in forming new conceptions about money, the econcmy. and people's relation to ther. My data come from conversations with Romanians in villages and cities, primarily in Transylvania, and from some publi- cations by groups both peas and anisCantas Rethinking money To the exten that 2 once-tacialist economy moves t0- ward x market system, people's conceptions, of the ‘economy and the place af money in their lives must ‘undergo a radical change. Marker- based systems regu late the low of wealth in a very different way from the planted econamy af saeialie. This is nor because $0 ‘ialist plans unfolded as planned, but because they ob. stueted the low of money and goods it certain charac- teristic ways, different from the obsinctions charac- teristic of market systems. For one thing, in socialise ros prices were determined not by ‘supply and de- tana’ but politically. Adjustments raight come {roe bribery, gifts, shadow production and barer, but these ‘occurred within constraints set visibly by dhe party. Ia yy experience, any Romanian asked to explain some aspect of the workings of ‘the economy’ could really [generate an answer based on something the party was ‘Up (0, usually some nasty plot against comman folk. I ANTHROPOLOGY TODAY Vol 1 No L, February 1995 Garton by eremy Panik ‘war prewarmed that economie events Bad an Sent the political system and those who rani “Markets in advanced ecanomies, however, work dif- feently. Theit secre lies in their being visible, taken for granted, abstracted from the actions of concrete agents. Precisely here is the ongoing usefulness of ‘Marx's insights about commodiy fetishism: market ex- change abseuses dhe social selauons surrounding production and distibutian, Socialis systems foo ha & form of fatishism: plan fedshism, which produced the illusion of agency and obscined the anarchy and chaos that sally took place bebind the scenes." That is, 50 cialist plans generated he illusion that everving is uncer social control; the illusion of market exchange however, is exactly the opposite, As markers achieve sreater significance in post socialist sociery, then, We ‘must look for socal visibility to be transformed: the proverbial invisible and must replace the all-toa- Visible one of the pars.” Things chat were personal ‘must become impersonal; the evonomy must become 2 force of raze for which no one in patictlar is respon sible. Caritas was a critical locus for the recading of ‘money and the economy that such a shift might ental, ‘At the simplest level, by participating i Cartes ‘people began to think differently snout money. Ic en abled them ta manipulate in dit minds sums of which hey had never dreamed, o think about what hey might oth such sums ~ co plan their expeedictes — and to row accustomed eo thinking about larger and largex Amounts in 2 gradual way. Fist they would have Amounts that could go toward consume items, then the amounts would get so large that more ambitious possi Tiliies suggested Ghemeclves: buying @ Wiclor or @ ‘corchine, opening 4 restaurant, founding a newspaper ar publishing house. Buc the change co 4 market economy Also invalves shifis that are more subtle, Socialist propaganda had tsught people thatthe cely acceptable source of money and gin wis work in the productive process; money ftom ‘cornmerce” and from ‘specula- tion” was tainted with capitalist aces. Now, however, With inereased trade of all kinds and major efforts to increase the eieulation af money through the financial system, these habits of mind ace being challenges. Caritas hasbeen 2 prime site for challenging them. ‘One form of this challenge is distinction between ‘my money’ and ‘their money’, 2 cistincrion made by nearly everyone I spake with, “My money’ as the amount people first deposited. Most wha jeceived pey-out withdrew that amount before twming aver the fest: at thi point, they would aay, dey were noc playing with cies own money buc with Stoiea’s money, and it was na longer possible to lose, A woman I spoke wih on z ain pot ic this way: “¥ou putin 100,000, get 800,000 back, take 500.000 of it to buy things you ‘need, and Keep pleying the game with 300,000 ~ cheir money. Am [ playing with my money chen? No. I it ets lost, have F lost my money? No. YOU CAN'T LOSE in this game’ Here is how another woman feom whom I heard dis Aiscincton elaborated i 1 got all my money hack, 30 i Falls [ane compli (Kv tnt the payout money asa yours] Na, 13 quite the same, thaw Fm nat ste hy — I never really thou abou. When they pay i to me an cas, i's my money, but When 1-4 no it my hand, i's at ke my ANTHROPOLOGY TODAY Vol 1] No J, Februsry 1995 1. Sea for exampie, ‘anders 1994, Has 1983, Holy 1982, Harptzey 1991 2 Thee wer epee ‘er 100 seh ges Ramana (Coelieve & was probally cloner to 20) ae 1989. ‘August 19943 huge pyramid the MMM. ‘tase olagad in Russia; the government eer cnsisenng aon again otters 28 ell (oe dea, se tre Financial Tet for IulyeSeperber 1954) In Boga wd Slovan seers Sprang wo ight fies 159 but ace banned byte respective goverroets, The Roman.an “Cari” fet ‘ot come 90 otaection With the Jong estblshed and cxttelyreapectable Cutohe a ‘xpanization of the srerame) | 23. Cartas was iensed it Ape 1952 0 me ‘kp af Beza but ved 19 ly 679 mone Iter The seu weleone seznided 29 the atonal partyin ‘conte he Septic of| Bracoven wit hic democtss opposition inayor, may nave iposed Soi 0 nave we Cu, money. (the hi collapsed, { wouldn't fel 8 ost my ‘money. Even when you get iin bard you spend i tly fiom ater money = you spend at more easy hive mv bts my hand 43 1 wok Rh ext window to deposit it id’ ¢ cha buther you?) No! Another couple who also made the distinewon talked bout it as follows ‘You should ike mt your mogey and play farther wih hairs Uf Ppa ov $60,000 on gar back 800,000, bring it tame, and pct hove om the table, x ths my moey?] Mo (Wy nae? Ue not tang about mney FP over it ‘mony I've brought home with me | We nave no ides. [at toy ai you ap it ent my mney?) Well Because i's teen in there oly tee months Tecan me yours. In & savings account, you eave roney fora Whole Year and get 50% imeret. Then i's race ke your money. Bt eighi> fold in ony thre mah Almost 6o one gave me the answer 1 got from one ‘peasant woman Who told me that she hed lot of money in Cartas. (Bur i's nat your money, is uo You've ralled it over “’s sill my money. ICT taken it ou, i would have been my money’. Thi woman was rare in not separating “their money" frora ‘mine’ ‘These ruminations on ‘my money" and ‘their money’ limcrsect with another feature of Caftas to illuminate some of what it was accomplishing, asked many peaple 0 explais to me how it worked: how could you possibly get eight times your deposit in only three months? Many did aoe find ths a meaningful qvestion: they had seen people on TV taking out huge piles of bills, or dey knew of someone who had done $0, and this was all the explanation they needed. Cartas works, for whatever reason. They had faith int and needed no further account, When I asked how they could entrst sueh large sums to something they didn’t understand, they shrugged. Te whole thing was incomprehensible, but i worked. Ftom this { coeelude that one of ‘Caritas's most important hidden effects was that it was ‘working co produce an abstract sphere in which money might clreulate and muliply witkowr clear agency. ‘Through it the economy was beginning 19 become an impersonal, uneegulated social fact, something ta be taken for’ granted because it worked A young sociologist expresved this nicely, sn explaining what be thought were me effects of hit own participation in Caritas: “I noticed that ik mage money seem more dis- Cant, as if it were happecing elsewhere, to someane clse. It had become an albsuction, rather than my ‘money’, Effects this man could articulate may also have ‘seen at werk lest consciously with others. ‘Caritas was thus 2 ‘technology’, in Fovcault’s sense, ‘hat fostezed the process of transforming people's ideas shout the economy toward a market sensibility. It was not the oaly such instrament, but it was an especially widespread one. Although the scheme's collayse in May 1994 may alter or abort its coetribution (0 that Process, the experience it afforded ts participants was something new. Pariculady for those who received and made use of a pay-

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