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Economic Anthropology History, Ethl:)ography, Critique Chris Han� and Keith Hart 'I Dolity ' II ' I I Copyright© Chris Hann and Keith Hart 2011 The right of Chris Hann and Keith Hart to be identified as Authors ofthis Work has been asserted in accordance with the UK Copyright, Designs and Patents Act Contents 1988. First published in 2011 by Polity Press Reprinted in 2011 Polity Press 65 Bridge Street Cambridge CB2 1 UR, UK Polity Press Preface lX 350 Main Street Malden, MA 02148, USA 1 Introduction: Economic Anthropology 1 3 All rights reserved. Except for the quotation of short passages for the purpose Some Issues of Method 'r of criticism and review, no part of this publication may be reproduced, stored 'I 6 :,1, The Human Economy in a retrieval system, or transmitted, in any form or by any means, electronic, Critical Anthropology 9 mechanical, photocopying, recording or otherwise, without the prior permission Organization of the Book 15 of the publisher. 2 Economy from the Ancient World to the Age of the ISBN-13: 978-0-7456-4482-0 Internet 18 ISBN-13: 978-0-7456-4483-7(pb) 'I 1 8 I, Economy as Household Management Medieval and Early Modern Roots of Economic A catalogue record for this book is available from the British Library. Theory 20 24 Typeset in 11 on 13 pt Sabon The Rise of Political Economy by Servis Filmsetting Ltd, Stockport, Cheshire The Economic Anthropology of Karl Marx 27 Printed and bound in the United States by Odyssey Press Inc., Gonic, New Hampshire National Capitalism and Beyond 29 Conclusion 34 The publisher has used its best endeavours to ensure that the URLs for external 3 The Rise of Modern Economics and Anthropology 37 websites referred to in this book are correct and active at the time of going to The German Tradition 39 press. However, the publisher has no responsibility for the websites and can 42 make no guarantee that a site will remain live or that the content is or will remain The British Tradition appropriate. The American Tradition 46 The French Tradition 48 Every effort has been made to trace all copyright holders, but if any have been 53 inadvertently overlooked the publisher will be pleased to include any necessary Conclusion credits in any subsequent reprint or edition. For further information on Polity, visit our website: www.politybooks.com v Contents Contents 4 The Golden Age of Economic Anthropology 55 Economic Anthropology as a Discipline 169 Karl Polanyi and the Substantivist School 56 Farewell to Homo economicus 172 The Formalists 64 Conclusion 70 Notes on Further Reading 175 Bibliography 179 5 After the Formalist-Substantivist Debate 72 Marxism 73 Index 196 Feminism 79 The Cultural Turn 83 Hard Science 88 The Anthropology of Money 93 Conclusion 97 6 Unequal Development 100 Development in an Unequal World 101 Anthropologists and Development 105 The Anthropology of Development in Africa 109 The Informal Economy 112 Beyond Development? 116 Conclusion 119 7 The Socialist Alternative 121 Socialism 123 Postsocialist Transformation 130 Reform Socialism 137 Conclusion 139 8 One-world Capitalism 142 The Development of Capitalism 143 Industrial Work 149 Consumption 152 Corporate Capitalism 155 Money and the Financial Crisis 159 Conclusion 161 9 Where Do We Go From Here? 163 History, Ethnography, Critique 164 Vt Vtt Preface This book began life as a position paper for a conference we convened in June 2006 on the state of economic anthropol ogy, with a particular focus on the contemporary relevance of the ideas of Karl Polanyi. When we came to prepare the proceedings for publication (Hann and Hart 2009), our paper was clearly too long to fit into that volume. In the meantime it has continued to grow. Completion has been delayed not only by competing commitments (the usual aca demic excuses) but by the impact of the latest, most serious crisis of the world economy, which has diverted some of our C't1ergies and inspired us to give the subject of money even �rcater prominence in the text than it already had. This finan cial crisis and its social consequences may have taken most of t·hc world by surprise, including the economists, but it should not have been a surprise to economic historians or anthro pologists, who have long been familiar with notions like 'creative destruction' and 'unequal development'. The latest crisis has not led us to change the rationale and structure of this book, which combines a history of economic anthropol ogy with a perspective on world history; but it conveniently demonstrates why this is more than a matter of antiquarian �cholarship. Nor is this a partisan polemic. Our account of the history 1111d present state of economic anthropology is offered as a 1.:ontribution to understanding econorhic life, a fieldin which 111any scholars - not only economists and anthropologists but tX Economic Anthropology also historians and sociologists (and many varieties under each of those labels) - must join forces. Some economists 1 claim a special status for their discipline and locate it closer to the 'hard' sciences than to 'soft' disciplines in the humanities. We take a critical and historical view of such claims, but it is Introduction: Economic not our intention to offer a romantic, utopian alternative to Anthropology economics. We are aware that economics is in some ways as diverse as anthropology. Our aim is to bring the two closer together and this makes us critical of mainstream positions on both sides. Previous accounts of economic anthropology linked it to the founding fathers of modern social theory - notably Marx, Weber and Durkheim. Occasionally the history was Anthropologists aim to discover the principles of social traced back to the political economists of the Enlightenment. organization at every level from the most particular to the We argue that the core questions are much older than this. universal. The purpose of economic anthropology in the nine Ultimately, economic anthropology addresses questions of teenth century, even before it took shape as 'the economics of human nature and well-being, questions that have preoc primitive man', was to test the claim that a world economic cupied every society's philosophers from the beginning. We order must be founded on the principles that underpinned make a case for an economic anthropology that is able to a Western industrial society striving for universality. The investigate this 'human economy' anywhere in time and search was on for alternatives that might support a more just space, as a creation of all humanity. But there have been economy, whether liberal, socialist, anarchist or communist. tremendous changes in the world economy over the last Hence the interest in origins and evolution, since society half-century, especially since the end of the Cold War, and was understood to be in movement and had not yet reached we therefore give the highest priority to addressing these on its final form. Anthropology was the most inclusive way of going transformations. thinking about economic possibilities. For the sake of readability, we have tried to avoid clutter In the twentieth century, knowledge was compartmental ing the text with footnotes or excessive references, quotations ized to an unprecedented degree, providing space for the and citation marks. The Notes on Further Reading which emergence of social disciplines modelled on the natural sci precede the Bibliography are intended to provide interested ences. Anthropology found itself pigeon-holed as the study readers with further detail concerning the materials presented of those parts of humanity that the others could not reach. in each chapter, as well as supplementary suggestions. Incorporated into the expanding universities, the job of the We are grateful to Sophie Chevalier, Horacia Ortiz and anthropologists was to accumulate an objectified data bank Vishnu Padayachee for permission to use collaborative mate on 'other cultures', largely for consumption by insiders and rial. Thanks also go to Gareth Dale, Stephen Gudeman, Sandy a few other experts, rather than the general public. The pro Robertson and Don Robotham for their helpful comments. fession became fixed in a cultural relativist paradigm (every society should have its own culture), by definition opposed to the universally valid truths of economics. Anthropologists based their intellectual authority on extended sojourns in X 1 I ! Economic Anthropology Introduction: Economic Anthropology remote areas, and their ability to address the world's economic the 1970s through three decades of neoliberal globalization. trajectory was much impaired as a result. We examine new critical perspectives, the 'cultural turn' in We identify three stages in the development of economic economic anthropology, and fresh aspirations to the mantle anthropology as a field. In the first, from the 1870s up to the of hard science, notably in the guise of 'New Institutional 1940s, most anthropologists were interested in whether Economics'. This period has seen anthropologists expand the economic behaviour of 'savages' was underpinned by their inquiries to address the full range of human economic the same notions of efficiency and 'rationality' that were organization, which they study from a variety of perspec taken to motivate economic action in the West. They initially tives. So far, they have preferred in the main to stick with devoted themselves to assembling compendious accounts of the tradition of ethnographic observation. We argue that the world history conceived of as an evolutionary process. Later, time is ripe for anthropologists to go further and address in the years following the First World War, the practice the world economy as a whole. In this new, fourth phase, of fieldwork became ever more dominant, and ethnogra economic anthropology would finally emerge as a discipline phers sought to engage the more general propositions of in its own right. mainstream ('neoclassical') economics with their particular The most basic issue remains whether or not the forms of findings about 'primitive' societies.