Economic anthropology is a subfield of anthropology that examines how economic systems and practices are shaped by cultural, social, and historical contexts. It explores how people produce, distribute, exchange, and consume goods and services across different societies, from small-scale indigenous communities to modern capitalist economies.
Unlike mainstream economics, which often relies on mathematical models and assumes rational decision-making, economic anthropology takes a more holistic approach. It considers factors like kinship, religion, power, and social norms in understanding economic behavior. Some key topics in economic anthropology include:
- Modes of production: Examining different economic systems like hunter-gatherer societies, agricultural economies, and industrial capitalism.
- Exchange and reciprocity: Analyzing how goods and services are distributed, including barter, gift-giving, and market trade.
- Consumption: Understanding how cultural values influence what and how people consume.
- Capitalism and globalization: Investigating the impact of global markets, multinational corporations, and economic inequalities.
Economic anthropology has two major theoretical approaches:
- Substantivism (Karl Polanyi) – Argues that economic activities are embedded in social and cultural institutions.
- Formalism – Applies economic principles (like utility maximization) to all societies, regardless of context.
Overall, economic anthropology provides a broader and more culturally sensitive perspective on economic life than traditional economics.