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THE EXCHANGE 
THEORY 
The Importance Of 
The Idea Of Exchange 
in Anthropological 
Theory
The Exchange Theory 
 Branislaw Malinowski (1884-1942) 
His famous book ‘Argonauts of the 
Western Pacific’ 
Exchange system called Potlatch 
• Marcel Mauss 
His famous book ‘The Gift’ 
Exchange system called Kula
Malinowski and His Theory of 
Exchange ‘Kula’
The Articles of Kula 
 Soulava Mwali
The Functions of Kula 
 To create ‘social alliance’ 
 The ability to remain fit and healthy for 
men 
 Creates good social relations between 
families and friends 
 Increase personal confidence through 
ceremonies. For ex: banishing bad luck
KULA 
 Acc.to Malinowski, culture existed to 
serve human needs. The needs of an 
individual conducts cultural behaviours in 
societies. 
 The main function of Kula was to create 
‘social alliance’. 
 It was creating social motivations for 
societies. 
 It was rooted in myth, backed by 
traditional law and surrounded with 
magical rites. 
 Economic Institution 
 Communication System
Mauss and His Theory of 
Exchange 
 Potlatch; a gift exchange ceremony 
as kula which is in practice in 
Pacific Northwest Coast of America. 
The articles in exchange: Tonga 
 Potlatch was bringing the 
honour,prestige or ‘mana’.
KULA & POTLATCH 
Way of Communication 
 Bring Social Cohesion 
 Organize the Hierarchy in 
Communities 
 Clean The Spirits of People 
 Represent the Power, Wealth and 
Happiness
Western Commodity 
Exchange Systems 
Gift Exchange 
Systems 
 Value: Supply and 
Demand 
 Labour Force 
Importance 
 Profit Importance 
 No origin 
 No relationships 
between 
objects&people 
 Permanent 
ownership=Wealth 
 Value: The 
Movement History of 
the Objects 
 No Labour Force 
 No Profit 
 Origin Importance 
 Deep relationship 
between 
objects&people 
 No 
ownership=Wealth 
means to give more
Western 
Commodity 
Exchange 
Systems 
Gift Exchange 
Systems 
 Monetary 
Economy,No 
Trust,Contracts 
 Market Economy 
Obligations 
 Individual Profit 
Importance 
 No 
Contracts,Trust 
Importance. 
 Moral Obligations 
 Social 
Mobilization 
Importance
DISCUSSIONS ABOUT POTLATCH 
SYSTEM 
 Economists find the system 
wastefull. 
 Wayne Suttles and Andrew Wayda-interpretation 
of potlatch. 
Customs like the potlatch are cultural adaptations 
to alternating periods of local abundance and shortage.
 Potlatching linked villages together in 
a regional economy which means an 
exchange system that distributed food 
and wealth from wealthy to needy 
communities. 
If there had been subsistence surpluses 
and thus a build up of wealth over several 
good years, a village could afford a 
potlatch to convert its food and wealth 
into prestige.
QUESTIONS 
1.What is the role of gift exchange 
systems on communication? 
2.Can you give some examples of gift 
exchange systems from modern 
socities?

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The exchange-theory

  • 1. THE EXCHANGE THEORY The Importance Of The Idea Of Exchange in Anthropological Theory
  • 2. The Exchange Theory  Branislaw Malinowski (1884-1942) His famous book ‘Argonauts of the Western Pacific’ Exchange system called Potlatch • Marcel Mauss His famous book ‘The Gift’ Exchange system called Kula
  • 3. Malinowski and His Theory of Exchange ‘Kula’
  • 4. The Articles of Kula  Soulava Mwali
  • 5. The Functions of Kula  To create ‘social alliance’  The ability to remain fit and healthy for men  Creates good social relations between families and friends  Increase personal confidence through ceremonies. For ex: banishing bad luck
  • 6.
  • 7. KULA  Acc.to Malinowski, culture existed to serve human needs. The needs of an individual conducts cultural behaviours in societies.  The main function of Kula was to create ‘social alliance’.  It was creating social motivations for societies.  It was rooted in myth, backed by traditional law and surrounded with magical rites.  Economic Institution  Communication System
  • 8. Mauss and His Theory of Exchange  Potlatch; a gift exchange ceremony as kula which is in practice in Pacific Northwest Coast of America. The articles in exchange: Tonga  Potlatch was bringing the honour,prestige or ‘mana’.
  • 9.
  • 10.
  • 11.
  • 12. KULA & POTLATCH Way of Communication  Bring Social Cohesion  Organize the Hierarchy in Communities  Clean The Spirits of People  Represent the Power, Wealth and Happiness
  • 13. Western Commodity Exchange Systems Gift Exchange Systems  Value: Supply and Demand  Labour Force Importance  Profit Importance  No origin  No relationships between objects&people  Permanent ownership=Wealth  Value: The Movement History of the Objects  No Labour Force  No Profit  Origin Importance  Deep relationship between objects&people  No ownership=Wealth means to give more
  • 14. Western Commodity Exchange Systems Gift Exchange Systems  Monetary Economy,No Trust,Contracts  Market Economy Obligations  Individual Profit Importance  No Contracts,Trust Importance.  Moral Obligations  Social Mobilization Importance
  • 15.
  • 16. DISCUSSIONS ABOUT POTLATCH SYSTEM  Economists find the system wastefull.  Wayne Suttles and Andrew Wayda-interpretation of potlatch. Customs like the potlatch are cultural adaptations to alternating periods of local abundance and shortage.
  • 17.  Potlatching linked villages together in a regional economy which means an exchange system that distributed food and wealth from wealthy to needy communities. If there had been subsistence surpluses and thus a build up of wealth over several good years, a village could afford a potlatch to convert its food and wealth into prestige.
  • 18. QUESTIONS 1.What is the role of gift exchange systems on communication? 2.Can you give some examples of gift exchange systems from modern socities?