UNIT - 3

B INDU
ECONOMIC ANTHROPOLOGY
HIM A
- HIMABINDU

ECONOMICS VS ECONOMIC ANTHROPOLOGY

• Economics is a social science that studies how individuals, governments,
firms and nations make choices on allocating scarce resources to satisfy
their unlimited wants.

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• Economic anthropology is a field that attempts to explain
D
human economic behavior in its widest historic, geographic and cultural
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scope.

HIM A
• Its origins as a sub-field of anthropology began with Bronislaw
Malinowski and his French compatriot Marcel Mauss study on the nature
of reciprocity as an alternative to market exchange.
• For the most part, studies in economic anthropology focus on exchange In
contrast, the Marxian school known as political economy focuses on
production.

• Tribal economy is the part of the tribal social totality. This has been aptly
demonstrated by Malinowski and Marshall Sahlins.
• It is spread over all the institutions of tribal life. For example, if a man
performs magic for protecting his crop, he has mixed culture for economy.

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• The Bhils get bride-price in view of giving their daughters in marriage.

B IND
• Bohannon has introduced a few new variables in the analysis of tribal

HIM A
economy. Tribal resources and the indigenous technology constitute part
of primitive economy. The author also stresses on the "requirements of
human beings" as the motivating factor for economic activities.
• Economics is closer to actor oriented or formal economy
• Economic anthropology is closer to system oriented or substantive
econmy.
 FORMALIST VS SUBSTANTIVIST DEBATE:
• The debate between substantivist and formalist economic models was first
proposed by Karl Polanyi in his work The great transformation.
• The debate was on whether the methods employed by neoclassical economics are
applicable to the study of simple societies.

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Substantivists: Those who believed that neoclassical economics is not applicable to

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HIM A
the study of simple societies.
Formalists: Those who believed that neoclassical economics is applicable to the
study of simple societies.
The debate was not resolved it just faded out.
• The formalist vs. substantivist debate was not between anthropologists and
economists, however, but a disciplinary debate largely confined to the
journal Research in Economic Anthropology.

System-oriented or Substantive Actor-oriented or Formal Economy

Economy

The principal proponents of the The principal proponents of formalist

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substantivist model were Polanyi, model were Raymond

B IND
George Dalton and Paul Bohannon. Firth and Harold K. Schneider.

HIM A
They are production optimizers
unit of production is the group
They are production maximisers
Unit of production is individual

Production for use Production for profit & Surplus

Kinship or nonmarket economies Market economics
No concept of alienation Alienation is a consequence of
Formal economy

Socio-cultural obligations, norms, Does not play a significant role

values politics, religion or the fear
instilled by authoritarian leadership play
a significant role in people's livelihood
strategies.

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Non capitalist preindustrial societies capitalist industrial societies

HIM A
According to Polanyi, the substantive
economy is an "instituted process of
interaction between man and his
environment, which results in a
continuous supply of want satisfying
material means”
Formal economy is “A rational choice
making of individuals whose every
action involves conscious or
unconscious selections among
alternatives means to maximize the
utility or to reach the culturally defined
goals under the conditions of scarcity.”
• According to Polanyi, in modern capitalist economies, the formalism &
substantivism coincide, market exchange is seen as the dominant mode
while reciprocity may continue in family and inter-household relations, and
some redistribution is undertaken by the state or by the charitable

U
institutions.

B IND
• Conclusion: Substantivists like Polanyi, George Dalton and Paul

HIM A
Bohannon argue that due to these differences between simple and modern
societies, neoclassical economics is not applicable to study the simple
societies.
• Formalists such as Raymond Firth and Harold. K. Schneider asserted
that the neoclassical model of economics could be applied to any society if
appropriate modifications are made.

They argued that that the principles of neoclassical economics have universal
validity. In every society man is selfish, rational, faces scarcity, and wants to
maximise the satisfaction of his wants. ‘Utility maximisation’ could replace
‘profit maximisation’, where utility can include reputation, family
togetherness, leisure etc.

B INDU
A
1. Critically examine the Formalists’ and Substantivists’ views on the

HIM
applicability of economic laws in the study of primitive societies.
(2015,20M)
2. Differentiate between Economics and Economic Anthropology
(2013,10M)
3. Critically examine the debate between Formalists and
Substantivists. (2011,30M)

TYPES OF RECIPROCITY IN SIMPLE SOCIETIES :

Reciprocal exchanges are not all alike. In 1965, an anthropologist named Marshall
Sahlins observed that there are three distinct types of reciprocity that occur in human
societies around the world--generalized, balanced, and negative.
1. Generalized reciprocity is gift giving without the expectation of an immediate

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return. E.g. Among the Gonds if there is an occasion of marriage, the kinsmen would

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bring rice or maize as gift. When there is death in the family similar presents are

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HI A
offered. The Gonds do not expect immediate return but when a similar occasion arises,

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the presents would be offered by the first receiver.
2. balanced reciprocity there is an explicit expectation of immediate return. Simple
barter, Gimwali among Trobriand islanders or supermarket purchases involve this
understanding.
3.Negative reciprocity: Occurs when there is an attempt to get someone to exchange
something he or she may not want to give up or when there is an attempt to get a more
valued thing than you give in return. Your taking advantage of her situation resulted in
negative reciprocity.
 4. Redistribution (or) redistributive exchange:
Some economic exchanges are intended to distribute a society's
wealth in a different way than exists at present. These are
referred to as redistributive exchanges.

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E.g., In hunting gathering tribes, all members handover the

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A
animals they hunted to the tribal chief. The chief the distributes

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them equally to all members. Thus, the tribal chief acts as the
centre of redistribution.
Other examples include Potlatch ceremony, Taxation, Charity
etc.

THE POTLATCH CEREMONY

• American North-West where, the Kwakiutl (and also, some other tribes
of the region) organised large-scale feasts. On such occasions, not only
enormous quantities of food were consumed, and gifts given to guests, but

B IN U
also many articles (considered valuable by them) were destroyed.
D
• It’s a specialised form of redistribution. An element of negative

HIM A
reciprocity was involved as it created an expectation that in future,
receivers would give back to the giver more than what they received.
• The practice of feasts (known as the institution of potlatch) among these
people shows how giving away of goods to the extent of physically
destroying them was linked with their claims to a higher social status. The
more feasts one group organised, the more prestige it received.

• Further the more a group was invited to such potlatches and the more gifts it
received, the more prestige the group gained in the eyes of other groups.
These feasts were always organised by agnatic groups, i.e., by those
standing in the relationship of brothers to each other. One such group
invited other such groups and vied with each other in giving more and more

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valuables to destroy .
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food to eat and more and more gifts to take home and more and more

HIM A
KULA TRADE (CEREMONIAL EXCHANGE SYSTEM)
• Bronislaw Malinowski, father of ethnography, in the year 1914 travelled to
Trobriand Islands.
• They are a 450 sq kms Archipelago, off the east coast of New Guinea.
• They are a part of the nation of Papua Guinea.
• He prepared monograph on the “Argonauts of the western Pacific. ”
• He studied their behaviour, culture, economic, political and kinship related
aspects.
• The research method he followed is “Participant abservation method”.

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• This study was crucial for Marcel Mauss’ master work “The gift”
• He studied the kula trade, which is a large-scale trade network in shell

HIM A
bracelets and necklaces.
• Kula trade occurs among the kula ring that spans 18 island communities
including Trobriand islands.
• The Kula gifts are of two types and are not in themselves remarkably valuable.
• One consists of shell-disc necklaces (veigun or Soulava) that are traded to the
north / in clockwise direction and

• the other are shell armbands (Mwali) that are traded to the south / in the
counter-clockwise direction.
• Mwali was given with the right hand,
• the Soulava given with the left hand,

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• The trade first happens between villages then from island to island.
• If the opening gift was an armband, then the closing gift must be a necklace
and vice versa.

HIM A
• Kula objects are of 2 types Kunedawesi (Owned by the Kula ring, cannot be sold,
possessed permanently, can only be exchanged. Majority of kula items are of this
type) and Kitom (Owned by a person).
• A kula valuable or equivalent item must be returned to the person who owns it as a
kitom.
• Important men own more kula valuables / older and more precious ones as kitom.

• In Dobu there are 100-150 people involved in kula trade.

• There will be lifelong relations between exchange parties (Karayta’u).
• Even temporary possession of kula items brings prestige and status.
Functions of Kula trade:

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• To maintain friendly and mutual trust relations.

HIM A
• Excommunication or isolation from kula ring is used as a punishment
system to achieve social control.
• To reinforce status, Hereditary chiefs hold the important ( rare ) shell
valuables and direct the ocean voyages.
• For the exchange of utilitarian goods & cultivated products along with the
kula items (Barter exchange known as Gimwali)
Malinowski’s Functionalist explanation of Kula trade:
Kula trade started and existing among Trobriand islanders
because it has functional significance.

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Malinowski’s Substantivist explanation of Kula trade:

HIM A
If we study kula trade from the viewpoint of Cost benefit rational
(Neoclassical economics) It appears to be illogical as the kula
objects do not have monetary value, but kula trade has a
functional significance independent of the cost benefit rational.

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HIM A

MWALI

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HIM A
 SOULAVA

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HIM A

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HIM A

4. With the help of appropriate examples, explain the various

forms of exchange systems. ( 2017, 15M )
5. Discuss different modes of exchange in simple societies.

B IN U
With suitable examples. (2011, 30M)
D
6. Discuss the impact of globalization on tribal economy.
(2013, 20M)
HIM A
• Introduction: Traditionally there existed many differences
between tribal substantive economy dominated by reciprocity
and the western formal economy dominated by market
exchange.
 Market exchange Reciprocity
Value: Supply and demand Value: The movement history of the
Cost and benefit object
No importance to origin Importance to origin

people
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No relationship between object and Deep relationships between objects
and people

HIM A
Permanent ownership
Wealth means to gather
No permanent ownership
Wealth means to give
Monetary economy Nonmonetary economy
No mutual trust and importance to No contracts, importance to mutual
contracts trust

Contract obligations Moral obligations

Individual profit importance (Actor Social mobilisation importance
oriented) (System oriented)
Production maximisation Production optimisation

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Importance to surplus No concept of surplus

B IND
Alienation is a significant aspect No concept of alienation
Formal economy
HIM A Substantive economy

Conclusion: Due to the impact of globalization, the differences between

tribal economy and modern market economy are decreasing and tribal
economy is becoming more like market economy. Globalization also led to
the exploitation of tribals due to the possibility of wealth concentration,
inequality and alienation in the formal economy.

7. Discuss the principles governing production, distribution and

exchange in simple societies. (2016,15M)

B INDU
Production: Production for use, Production optimizers

goods.
HI A
Distribution: To achieve equal and continuous supply of essential
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Exchange: To develop mutual trust relations and social mobility
Note: Elaborate the answer taking points from the table.
CULTURAL FEATURES OF PASTORAL SOCIETIES
8. Pastoralism in India. (2019, 10M)
• Pastoral economy is characterized by nomadism, semi-nomadism as they
move from place to place frequently or seasonally in response to their

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animal needs.

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• This economy has the characteristic of supporting a low population density

HIM A
of small size communities.
Technology: Technology includes milking tools, pouches of skin, saddles
made of skin and leather and variety of knives for trimming for shearing the
wool and cutting the meat are also used.
Division of labour: Division of labour is based on age, sex and
specialisation. Man herds the animals, milk them, sometimes tap blood from
them and do numerous other activities.

• Women attend to the preparation of curd, butter, cheese and yogurt.

• This economy is characterised by plenty of food and frequent food shortages.
• In the form of meat and diary products, wool, hides, woollen blankets, pastoral
economy yields only a limited surplus of food supply. They exchange these

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items for cereals, millets, weapons, containers etc from wider society.

IND
• Trade is usually necessary for pastoral groups because large proportion of their
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HIM A
food may actually come from trade with agricultural groups.
Political organization: It favors part time political leadership. Raiding and
warfare are frequent activities.
Bakarwal Jammu and Kashmir
Bharwad Gujarat
Bhotia Uttarakhand
Bhutia North district of Sikkim

CULTURAL FEATURES OF HUNTING AND GATHERING

ECONOMY
9. Write the characteristics of hunting and gathering economy.
(2018, 15M )
Distribution:

B INDU
• About 0.003 percent of world population are in hunting gathering level of

forests.
HIM A
economy. They live in frozen arctic tundra, deserts and dense tropical

Examples: The Paliyan, the Irula, the Chenchus of south India; the Onge,
the Jarawa and Sentinelese of Andaman islands.
In Australia, the Arunta, In North America, the Shoshone, the Miwok, the
Ojibwe and the Winnebago red Indians of United States and the central
Eskimo of Canada are the food gathering tribes.
Characteristics:
• Nomadism and semi-nomadism.
• Lowest population density.
Technology:

B INDU
• Simple economic resources like Digging stick and collection basket
for food, special baskets for honey. Bows, arrows, spears for hunting,

HIM A
spear thrower and missiles, throwing stick called boomerang are used
in hunting.
• Division of labour: Division of labour is between sexes. While men
engage in hunting, women go in parties to gather roots, tubers with
digging sticks.
• Collecting areas and hunting zones of different local groups within a
tribal society are marked.

• Capital is simple tools used for nomadic and semi-nomadic life.

• Hunters and gatherers share tools in exchange for the products of
their use.
• Characterized by plenty of food and rarely of food shortage.

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• Wild fruits, roots, tubers, mushrooms, honey are eagerly sought

IND
by them. Ostrich eggs, turtle eggs and lizards are also collected.
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HIM A
They have special techniques for preserving wild foods and meat.
• No or adequate surplus. Surplus after satisfying the needs could
be used for barter, exchange or trade.
Political organisation:
• Food gathering economy favours informal political leadership
and will be mostly democratic.

HORTICULTURE (2015,10M)
Distribution:
• 10,000 years ago, inhabitants of middle east discovered that plants grow
from seeds. This discovery was made by women. Thus, women laid a
foundation for a significantly new kind of societies, one that could produce

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its own food or the major part of it.

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Examples:

HIM A
• The Hopi and Zuni red Indians in North America; the Apinaye, the
Tarahumara, the Kamayura, and the Jivaro red Indians in South America.
• The Azande, the Tiv, the Tallensi, and several other tribal societies in Africa.
• The Arapesh, the Trobrianders and many others of pacific islands.
 • Horticultural economy is characterized by more sedentary nature,
they move only when they are forced to, by the exhaustion of soil.
• It has the characteristic of supporting low to moderate population
density with self sufficient economic units usually villages of people
ranging from 100-2000.

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• Horticultural economy is characterized by simple to moderate

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HIM A
economic resources
• Technology includes simple hand tools and simple methods of
farming. Small amounts of lands are worked at one time mostly with
hand tools namely digging stick, hoe or spade.
• Division of labour is based on age, sex and some specialization.
Women’s contribution to subsistence activities is greater than that of
men.

• This economy is characterized by plenty of food and infrequent food

shortages.
• Horticulture yields maize, and manioc in Africa. Corn, sweet potato
and potato in America. Yam, coconut, and sugarcane in Oceania and

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some root crops in Asia. These are supplemented by meat and fish.
D
• This economy favours some part time political leadership. Some

HIM A
persons may be part time craft men or part time political officials and
certain members of a kin group such as lineage heads, tribal chiefs,
shamans and priests may have more status than other individuals in the
society.

SWIDDENING / SHIFT CULTIVATING ECONOMY

Shifting Cultivation refers to the form of cultivation where a large area is

cultivated for few years and then abandoned for some time until the

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fertility of the land is restored naturally.

HIM A
Process: Shifting axe-cultivation consists of felling trees on a hill-side a
little before the sowing season and setting them on fire.
If all the trees are cut down, then the Bhuiya call it ‘Dahi’ if only bushes
and shrubs are placed round the trees and then burnt, they call it “Koman”.
In tribal India shifting cultivation is widely prevalent, though it is known
by different names.
 • The Naga call it Jhum Cultivation;
• The Bhuiya distinguish two forms of it, dahi and koman;
• The Maria of Bastar calls it penda;
• The Gond refer to it as podu;
•

B IND
And the Baiga call it bewar.
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A
Among the Kharias it is known as ‘Jara-Kata cahas’.

HIM
•

Disadvantages: Shifting cultivation has come under severe criticism from

nearly all imaginable quarters.
• It has been characterized as inefficient, uneconomic and wasteful.
• It has caused deforestation and as a consequence thereof, erosion and
floods.
• Valuable timber has been wastefully lost.

Mythological Explanation: The Baiga report that Bhagwan (God) told

their ancestor Nanga Baiga not to plough land as the Hindus and the Gond
do; doing so would have meant tearing the bosom of mother- Earth.

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Conclusion: It has been pointed out that if shifting cultivation is not

HIM A
stopped, it will tie down the tribes practicing it to an undeveloped and low
socio-economic level, and it can also have an ecological impact as it
involves deforestation. However, it must be recognized that a change-over
from shifting to permanent plough cultivation cannot take place suddenly as
the economic life of a people is woven inextricably with all the other
aspects of their life.

FISHING ECONOMY
Distribution: Historically, hunting-fishing economy is probably the second
oldest type of economy. It is limited to societies which are located near
seacoast, lake areas, and riverine environments.
Examples:

B INDU
• The tribes living in the north-pacific coast of North America like Blackfoot,

A
Haida, Nootka etc

HIM
• Copper Eskimo of northern Canada,
• Red Indian tribes of lowland South America
Characteristics:
• It is characterized by sedentary life.
• plentiful and stable food supply than hunting and gathering.
• higher population density. They are of large self-sufficient local groups
 Technology:
§ The Eskimos have canoes, kayaks, igloos, dog sledges, harpoons, spear
throwers and some nets for hunting as well as fishing.
§ The red Indians living in north America use canoes, harpoons, spears,
nets, hooks, and traps.
Division of labor:
B INDU
HIM A
• it is based on age, sex and specialization. Often the fishing activities are
performed by men, they may also go for hunting wild animals.
• Women often go for gathering vegetable products, turtle eggs, crabs and
some marine animals washed ashore.
• Men and women work together in processing, curing and storing the
fish.

• Men specialize in woodworking, canoe building and basket making. All

manufacturing is carried out by handicraft without the aid of machines.
• A variety of smaller fish including candlefish, herring, along the shores;
mussels, sea urchins, crabs and other offshore forms; sea seals, sea otters

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and other deep water marine animals make up a large part of the diet of
fishing societies characterized by plenty of food and protein

HIM A
• This economy is characterized by surplus production and trade. Fish are
easily stored when dried or smoked.
Political organisation: This economy favours formal political leadership.
The distribution is not equal; the leader gets a major share, and the chief gets
the tributes. Third, these politico economic inequalities have built up a
hierarchy of formal leaders for maintaining the village and tribal solidarity.

AGRICULTURAL ECONOMY

Distribution: Almost 8000 years ago there were many important advances
in farming. Scores of new plants were brought under cultivation. Principles
of irrigation, fertilizing and weeding were discovered. Cultivation with

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animal drawn plough exists in north Africa, Europe and Asia including

B
A
Indonesia.

HIM
Examples: The Baiga, the Bhil, the Bhunjia, the Ho, then Lepcha, the
Oraons, and the Santhals in India, the Kachin of Burma and the 16th century
aztecs of Meso America
Characteristics:
• Agricultural economy is characterised by sedentarism. They have mostly
sedentary communities because people have attachment to lands used for
continuous cultivation for generations.
• It has the characteristic of supporting the highest population density,
sometimes 1000 per square mile, with permanent rural and urban
communities. It supports large villages towns and cities.
• Land ownership includes a set of complex rules relating to allocation.

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Ownership by a lineage, a clan or even a phratry is common.

IND
• Agricultural economy is characterised by the presence of wide individual
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HIM A
differences in wealth.
Technology:
• Agricultural economy is characterized by complex economic resources
• Technology includes complex agricultural and several methods of
cultivation. The equipment consists of animal drawn ploughs, harness,
levelers, knives, spades, sticks and others.

• Agricultural operations include preparation of soils, sowing, caring

for the crops and harvesting. Irrigation and weeding comprise
essential parts of caring the crops

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Division of labour: Division of labour is based on age, sex and high

B IND
degree of specialization exists. Women contribute less to subsistence.

HIM A
Capital: Capital includes money, draught animals, ploughs, levelers,
spades and others.
Political organisation: Economy favours the existence of many full
time political officials because economies and polities are always
tightly intertwined in agrarian tribal societies.

3. Economic organization: Meaning, scope and relevance of

economic anthropology; Formalist and Substantivist debate;
Principles governing production, distribution and exchange
(reciprocity, redistribution and market), in communities, subsisting

B INDU
on hunting and gathering, fishing, swiddening, pastoralism,
horticulture, and agriculture; globalization and indigenous

HIM A
economic systems.

According to Hoebel and Weaver, “Economic organisation

involves the behaviours that center upon the production, the
allocation and distribution, and the use and consumption of goods”.