*Caritas’: And the Reconceptualization of Money in Romania
Katherine Verdery
Anthropology Today, Vol. 11, No. 1 (Feb., 1995), 3-7.
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‘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 1995Garton 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 19951. 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-