Economic anthropology studies the economic systems of primitive societies where concepts like money and markets are often absent. Production, distribution, circulation and consumption are traditionally divided into four areas of analysis. Anthropologists examine how primitive groups engage in activities like food gathering, agriculture, and handicraft production. Exchange is often based on barter and reciprocal gift-giving rather than markets and currency. Property is collectively rather than privately owned, and cooperation rather than profit is the main motivation for economic activities.

1. ECONOMIC STRUCTURE
Social Anthropology

2. Economic Anthropology
 Economic anthropology originally focused on the
Economic Life of Primitive Peoples where many of
the elements present in the Western economy
(such as money, a market system) were absent.
 Economic system was designed to satisfy the
material wants of the people, to organize
production, to control distribution and to determine
the rights and claims of ownership within the
community.

3. Economic Anthropology
 Traditionally, economic processes have been
divided into 4 different areas:
 Production
 Distribution
 Circulation
 Consumption.
 Economic anthropologists study processes of
production, circulation and consumption of different
sorts of objects in social settings.

4. Field of study in primitive economy
 Anthropologists study the economic activities of
primitive societies.
 They study activities of food gathering tribes. They
find that the agricultural system, handicrafts, etc.,
and the functioning of cooperative credit
institutions and values are different from those of
civilized society.
 For this purpose the economic anthropologist has
to make a wide use of economic principles, as he
is studying a society where money is not the
medium of exchange. Here comes the barter and
the kula system.

5. Barter System
 A barter system is an old method of exchange.
This system has been used for centuries and long
before money was invented.
 People exchanged services and goods for other
services and goods in return.

6. Kula System
 Kula, also known as the Kula exchange or Kula
ring, is a ceremonial exchange system conducted
in the Milne Bay Province of Papua New Guinea.
It was first described in the west by anthropologist
Brownislaw Malinowski in 1922.
 Kula ring is a complex trading device, basing on
the system of barter.
 The Kula ring spans 18 island communities of the
Massim Archipelago.

7. Characteristics of Primitive Economy
 Economic relationships are based on barter and
exchange. There is no provision of currency. There
are no banks and other credit societies.
 Economic system is based upon social customs,
physical conditions and faith in ancestors. Almost no
primitive crosses their limits.
 Profit is seldom the motive of economic activities.
Mutual obligations and unity perform the function of
motivation.
 Mutual cooperation and collective enterprises are
characteristics of primitive economy.

8. Characteristics of Primitive Economy
 There are no regular markets. Weekly moving
markets are the bases of exchange. There is no
monopoly.
 There is no institution of private property. All the
land is collectively owned. Land is equally divided
among families and each family cultivates land
allotted to it. There is more consumption than
production.
 Due to simplicity and uniformity of technique, rate of
innovation (induced or internal) is very low.
Geographical, cultural isolation also contributes to
this, thus rate of change/progress is slow.

9. Characteristics of Primitive Economy
 Economic processes are in accord with values and
closely interrelated with family, religion, community
folkways, mores, etc.
 It serves small community and a relatively small
number of goods and services are produced and
acquired. Focuses on production of one or few
staple items; e.g. Todas only produce dairy
products and get other items by barter.
 Families and communities were self-sufficient
production units.

10. Property
 Property - rights of possession and use of goods
 Property consists of goods and services that society
gives an individual or group of individuals with the
exclusive right possess, use and dispose of.

11. Production
 How societies produce the material goods to sustain
their life styles.
 Principles that can influence the production of goods:
 Resources - the materials with which goods are produced
 Technology - the means for producing goods
 Energy - the power to produce goods
 Organization of Work - assigning tasks in production
 Economic Units - how people are organized to produce
goods

12. Distribution
Principles in how material goods are distributed in a
society
 Reciprocity - the direct exchange of goods between
people/groups.
 Redistribution - central collection and distribution of
goods

13. Reciprocity
 Reciprocity refers to a mutual exchange of services
or goods among social peers. All reciprocity serves
one distinct purpose: to create or alter social ties.
 There are different types of Reciprocity:
 Generalized Reciprocity
 Balanced Reciprocity
 Negative Reciprocity

14. Reciprocity
 Generalized Reciprocity
Generalized reciprocity is the proffering of a gift
without the expectation of immediate return.
Unselfish sharing falls within this category, as does
the idea of "paying it forward," when the value of the
exchange is often entirely social and non-tangible.

15.  Balanced Reciprocity
Balanced reciprocity demands an immediate
reward for giving. One common modern example is
the baby shower, where a guest is expected to bring
a gift in exchange for sharing a meal and social
interaction. A guest may choose not to bring a gift
but they risk losing social credit among their peers.
Reciprocity

16. Reciprocity
 Negative Reciprocity
Negative reciprocity implies that one side loses
in the exchange or receives less than they expect.
Cheating, manipulation and hard bargaining are
often involved in negative reciprocity, although taking
things by force is another form.

17. Redistribution
Redistribution is a form of exchange in which goods
are collected or flow to a central authority/ polity
where they are reallocated to members in a new
pattern.
 Distribution is unequal
 Social exchange - exchange of goods across groups for
social purposes.
 Economic leveling - redistribution for socioeconomic
equality. Social values of equality/harmony between
members.
 Trade - indirect exchange of goods between
individuals/groups. In most societies, trade is important in
subsistence. Supplements those goods produced for own
consumption

18. Redistribution - Trade
 Barter - the direct exchange of goods for other goods
 Market exchange - goods exchanged for set medium
value. Standardized medium of exchange - money,
impersonal. Prices set by supply/demand.
 Trade exchange - An exchange is a marketplace in
which securities, commodities, derivatives and other
financial instruments are traded. The core function of
an exchange is to ensure fair and orderly trading, as well
as efficient dissemination of price information for any
securities trading on that exchange.