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BACK to Home page to Writing index Posted: 24 August 01 Last edited: 12 July 2006
Culture and Holism in Ethnography and Exogenous Factors
in Economics An
Approach to the Meaning of Ethnography in relation to Economic Theory CYRIL
BELSHAW NOTE
2001: Although written in 1986, the article was not published until 1992
in Archivio per l'Antropologia e la Etnologia PAROLE
CHIAVE: Antropologia economica, variabili esogene, olismo, scambi
sociali, etnografie, razionalità, tautologia, falsificazione. RIASSUNTO II lavoro aifronta Ia
questione. come puô l’etnografia rapportarsi all’analisi di variabili
esogene? Lo studio sostiene l’opportunita di incorporare l’etnografia nei
modelli centrali dell’economia, suggerendo che le etnografie costituiscono
ciò che gli economisti chiamano elenchi di preferenze. L’etnografia
ribadisce che i pararnetri di scelta prendono in considerazjone costi non
materiali. Una
volta che questo è fatto, la via è aperta per la necessaria incorporazione.
II carattere tautologico del modello di razionalità degli economisti non è
in opposizione a questa procedura. Si
sostiene anche che ciò puo essere ancora utile per previsioni pratiche e
teoretiche. KEY
WORDS: Economic anthropology, exogenous variables, holism, methodology,
interdisciplinarity, choice, social exchange, preferences, ethnographies,
rationality, ends and means, tautology, falsification. SUMMARY —
The paper addresses the issue, how can
ethnography relate to the analysis of exogenous variab1es? It argues
for the incorporation of ethnography into the central models of economics,
suggesting that ethnographies constitute what economists call schedules of
preferences. Ethnography insists that the parameters of choice take into
account non-material objectives, and that decisions also take into account
non-material costs. Once this is done, the way is open for the requisite
incorporation. The tautological character of the economists’ model of
rationality is not in opposition to this procedure. It is also argued that it
may still be useful for practical forecasting and theoretical prediction. In 1986
Prof. Ulf Himmelstrand, the Swedish sociologist, organized a
symposium, on behalf of the International Social Science Council and
Unesco, to explore an interdisciplinary approach to the treatment of what
economists call <<exogenous variables>>. The meeting consisted
fifty per cent of economists and fifty per cent of representatives of other
disciplines. The results have not been published. The
present paper consists of a slightly amended version of my contribution. In
writing it
I came to realize
that, for the most part, we as anthropologists take for granted the
economists’ image of where our discipline lies, and often accept that as
truth, without questioning the fundamental theoretical concepts. Although my
task was to talk to economists, I found myself re-affirming and re-thinking
the consequences of a postulate I have held throughout my academic career,
namely that there is a philosophical and theoretical unity between the core
ideas of economics (as distinct from some of the contemporary elaborations and
compromises with that core) and the operations of ethnography (as distinct
from its contemporary theoretical apparatus).. Thus I found myself writing
about matters that I feel need re-thinking in anthropology as much as they do
in economics. And it
is for this reason
that I hope the arguments I now present will have some future value to
colleagues in my own discipline, as well perhaps as in economics. Ulf
Himmelstrand, in his summing up of the meeting, inferred that I was accepting
a great deal of what has come to be known as the <<imperialist>>
position of economics. This is not the case. What I do accept is the
desirability of using some of the earlier theoretical ideas of economics. But
then I depart from conventional economics almost completely, and most
certainly do not accept its version of the world around it or
even within it. And
in accepting the earlier versions of these concepts I argue for their
transformation in a way that is not usual within economics itself or, I may
say, anthropology. There have been some brave attempts by a very few
economists to extend their concepts into areas covered by other social
sciences in a non-imperial manner, but, at least insofar as
anthropology-ethnography are concerned, without making use of what we have to
offer in a positive way. That is partly our fault, since we ourselves have
done little to show what our observations have to say in a framework that
permits theoretical dialogue. The
present essay is an attempt to hint at possibilities. In
a background paper contained in a Newsletter to the participants, Ulf
Himmelstrand grappled with the meaning of <<exogenous variables>>
in economics. In essence they are those variables which lie outside the
basic self-contained formal model. Since such models, though basically similar
in contemporary economics, are not completely unified, there is room for
differences of opinion as to what is exogenous and what is not. In practice,
as Himmelstrand points out, the term frequently refers to factors which must
be considered as given (my italics) in a certain context of economic
decision-making, regardless of whether it is
an economic or non-economic factor, though in this context we are referring
mainly to so-called <<non-economic>> factors. We could think of
family structure, ethos, religion, power, class structure, propensity to
innovate, the environment —
indeed almost everything that has cultural and
environmental reality in determining choices and decisions. In economic
model-building it is
so easy when all that is regarded as external to the model. So
I set out to try to give one answer, among many possible ones, to the
question, what can anthropology contribute that will cast light on the nature
of exogenous variables, as conceived in economics? To
take the question literally would mean accepting the validity of the analysis
which posits the usefulness of systems which can logically function only if
there are exogenous factors not merely as a temporary accommodation to the
limits of observation, but as an affirmation that such systems may be seen to
work well. From
the perspective of anthropology, such a position has to be fundamentally
flawed with respect to adequate models of reality, and, I would argue, is
inconsistent with the classical axioms of economics, which are still
fundamental to it.
Hence I partially
transform the question by asking the question, can the models be increased in
explanatory power if the notion of exogenous variables is discarded, or
at least substantially modified? First,
some background explanation. Within social and cultural anthropology and
even more within conservative ethnography, abstract model building of the kind
economists perform is extremely rare. It is overdue, even with the branch
known as economic anthropology. Although we deal with social relations and
social structure and organization, anthropology derives its basic concerns
from the overriding importance of cultural systems which permeate all
thought and decisions, and are essential to the definition of cultures and
peoples who create variations of economic behaviour. I
believe that this is, or can be, done in a manner which can be related rather
precisely to at least the earlier axioms of micro-economics. And despite some
field work choices, we are concerned with humanity in all its expressions,
not limiting ourselves, in the popular and economists’ view of us, to the
apparently exotic. (The economists present at the meeting were totally surprised to find that anthropologists had anything
to say about modern health delivery systems, industrial workers’ attitudes
and cultures, modern urban systems, city planning, or anything of that ilk.
Fortunately I believe this perception is changing amongst some.) Most
anthropologists, without thinking about it, subscribe to the idea that the
discipline is holistic (sometimes spelling the term <<wholistic>>).
Major theorists have suggested that beyond any macro-culture there is a level
of principle which can be used to explain a cultural system in terms which go
beyond its parts (cf. the <<superorganic>> of A.L. Kroeber (1917),
some versions of the <<value systems>> of Clyde Kluckhohn (1953), and
now the structuralism of Claude Levi-Strauss (1963). Such
constructions are far from commanding total acceptance. The bulk of
anthropology is not holistic in that sense, but deals rather with the
functioning of parts of the system within the systemic whole. While
constructs such as society, culture, polity, institution, even economy, are
not in fact organic as are biological organisms — there is for humans only one self-contained system, namely the global
society, and even that can be debated — yet
it sometimes suits our purposes to use an organic analogy, and to think of
the parts as necessary to the total system. Although our language is very
different, this is not far removed in principle from the mechanical systems of
economists. Also,
holism as used in anthropology perhaps unthinkingly implies a different
dimension, namely that the only real system embraces global society in all its
aspects, which ultimately must be understood through the use of massive data
(including <<thick>>, or highly detailed and evocative,
ethnography) and insights drawn from all disciplines. Since such a task is in
reality clearly impossible, abstracting mini-systems out of the maximum, and
the selection of a few interdisciplinary themes out of the infinity, is
justified — and there are as many ways of doing this as there are anthropologists. Anthropology
differs from mainstream economics in that we do not concentrate on one limited
way of doing this, and (although we have much dogma) it is usually evident to
us that such partial systems cannot give complete results, even within their
terms of reference. What is left out can be as significant as what is put in,
and, contrary to much of economics, we welcome the additional perspectives and
linkages provided by those who are working with an adjacent dimension. It is with such attitudes
that anthropologists approach the kinds of issues that are embodied in the
idea of exogenous variables. The idea implies that there is more at stake
than heuristic expediency; the core of the model has a special primacy, a key
significance, for enlightenment and additions to knowledge. It would be
extremely difficult for anthropology to accept this, since it appears that
the conclusions drawn from the model, whether explanatory or practical, are bound
to be false. The only chance of correcting them appears to be to incorporate
the exogenous variables into the core model (leaving aside the
question as to whether the model itself should be replaced, a question to be
determined by results and criticisms). Granted,
this would reduce such mathematical power as the models seem to hold, would
reduce some of the elegance, and make the life of analysis much more
complicated. But who can pretend that social life is not complicated? And is
it not out of complications that the over-riding themes and principles and
theories emerge, as we search for the ultimate simplicities? And if
mathematically inclined economists were to take the anthropological
perspectives more seriously, treating them as challenges to the improvement of
the models rather than as curious nuisances, it might well be that the game of
mathematicization would not be as hopeless as at first sight it seems to be
(cf., for example, Becker, 1981; Belshaw, 1959, 1969, 1978; Blau, 1964).
Anthropologists could certainly learn from the attempt. I
should give some grounds for making such brash assertions. The
notion of choice is central to neo-classical economics. As I have mentioned, a
few anthropologists, and the now somewhat discredited national character
school (e.g. Gorer and Rickman, 1949),
have attempted to
seek super-cultural principles which would constitute what the sociologist
Talcott Parsons (1935, 1937) called normative orientations which govern the
way preferences are chosen and means are used to satisfy them. If such a
search were successful, and most anthropologists believe that it
is something more
than an intellectual game producing stimulating insights, it would alter the
whole paradigm. All exogenous factors, translated into behaviour, could then
be predicted on the basis of their immediately preceding state and their
linkage to known superior forces. Nothing like this has happened, or is
likely, even with the intrusion of biological and genetic knowledge into the
considerations. Man and his variations are too complex, there is strong
evidence that any posited principles change in given cultures over time in
such significant ways that, while continuity may be there, [are] less than
mechanistic. On
the other hand we do, at a lower level of abstraction, speak of cultural
systems and social structures, and make sense of their dynamic forms.
Depending on analytical circumstances, these can be presented as constraints
on choice, in that, through various processes such as socialization,
limitations of perceptions, strong moral valuation, and many more, they put
boundaries around the supposed infinity of wants and around the definition of
resources and means. The latter are not so much technologically given, but
are defined as perceptions within the culture. What is a resource to one
people is unknown or irrelevant to another, whether or not it is physically present. Within
such boundaries, choice is wide open: society is free to change or not to
change, to create new religions or stay with the old. And by the exercise of
individual choice within society and culture, aggregated and ramified, social
systems and cultures themselves change and adapt, sometimes through external,
i.e. foreign or environmental, pressures and influences, which are interpreted
through the same processes, and just as much through their internal
activities, tensions, resolutions. Although
many ethnographic descriptions read statically, all contain the data which
anthropologists and economists can tease out to reveal the exercise of choice. The
fact of choice is even more central to anthropology than to economics, since
the totality of the subject deals with its empirical manifestations. The
major stream of analysis originating with the work of Marcel Mauss (1925) on
the gift and its prestatory status, would derive social structure in any
society at any given time from the cumulation of individual choices. (There is
an echo here of the perspective of Radcliffe-Brown, that social structure is a
statistical phenomenon). This has led to a grouping of theoretical stances
variously labelled <<social exchange theory>>. <<Transactional
analysis>> and <<social network theory>> (e.g. Bailey, 1969;
Barth, 1966, Blau, 1964; Kapferer, 1976; Orans, 1968; Ortiz and Howard, 1971). Individual
choice extends to the choice of persons with whom to interact, perhaps
within defined categories (but you can always choose not to interact if
you are willing to pay the price of non-interaction). The interaction includes
the flow of symbolic messages. material things, emotions, and what we would
call services. Of course choices are influenced by culturally emphasized
preferences, including many the conventional economist leaves out of
consideration, such as salvation, prestige (Veblen should be re-read), love of
family, beauty, aggression, habit versus innovation, and all the others you
can think of. In turn, the choices result in a reaffirmation or a change in
the culture. Such
analysis, despite limited manpower directed to its extension, has been used
for such diverse subjects as kinship and family patterns (Homans and
Schneider, 1955), ceremony and the social order (numerous deriving from
Mauss), political parties in Britain (Bailey, 1969), leadership and power
(most abstractly by Blau, 1964; Bailey, 1971),
the social organization
of the Swat Pathan (Barth, 1959 a and b), fishing entrepreneurs (Barth, 1963
and his followers), regularities in peasant markets (Mintz, 1959, 1961),
pre-monetary exchange systems (Belshaw, 1965), Mediterranean feuding (Bailey, 1971),
to name but a few. How
analytically, can this situation be tied into the problem before us? I shall
take, one by one, a selection of theoretical concepts presented for discussion
by Kenneth Hartley, an economist at the University of York. He
states that <<Utility or preference functions are central [to economic
analysis]... and are assumed to be given>>. That is, there is no
discussion in the central model of how individuals or groups choose
preferences or determine utility (in the special economists’ sense of that
word). There then follows what, to an anthropologist, would be an off-hand
sketch of what in fact is a limited range of influences upon those givens,
which we need not go into. To
explore the genesis and dynamics of such givens, which surely must be
essential to a knowledge of the dynamics of an economy, is, as we know,
extremely complex and fundamental to any dynamic interpretation of social
systems. Even ethnologists often abjure digging into the dynamics,
preferring a static description. But to assume the functions to <<be
given>> is to relegate the act of choice to the administration of
resources only —
how choices, given, are satisfied whereas the overwhelming
characteristic of human culture is choice between each of the ends, objectives,
goals, wants and ambitions. This
of course is not overlooked in economics, though there is a tendency, except
in fields such as welfare economics, to subsume linked goals under a broader
classification. Thus the goal of maximized profitability can accommodate the
consideration of competition between the goal of making automobiles and that
of making snowmobiles. But it is more difficult to include in the consideration
that an individual, an entrepreneur, a firm (large or small), a civil servant,
may have alongside of strict profit a concern for an optimal mix of return
embracing such matters as profit, prestige and social status, expansion for
its own sake, successful gamesmanship, environmental protection (not simply as
a conservation of means but as a goal in itself), aesthetics of work and product, philanthropy, family
support, worker support. Apart
from providing a false simplicity of argument, the notion that preferences are
given enables the economist to avoid what he may see as the trap of cultural
relativism. Relativistic explanations are indeed insufficient, but
non-relativistic explanations of cultural difference, and of the articulation
of differences of culture within a system, must be sought deliberately. It
is highly significant that no attention whatsoever was paid to such issues in
the economists’ contributions to this particular symposium, even when
considering exogenous factors. It is as if history and culture do not exist. Yet
surely it is very clear (as some economists do indeed recognize) that
Japanese, French, Russian and British, to say nothing of Indian or Uzbek,
preference functions differ enormously between each other and change
significantly; and also that with each of these societies there are ethnic,
class, professional, cultural, religious and other significant groups who
choose differently from other citizens. Production, trading, marketing,
consumption, yes and working and organization, are reflections of such
differences, and of the articulative interaction between them. Most
economists I am sure would concede this, the point at issue being whether they
are, or should be, exogenous in their thinking. The hold up, as I see it, is
not in the potential mathematical technique, but in the relative vagueness of
some of the concepts, in problems in getting agreement on operational
definitions, and in lack of attention to modes of measurement, particularly
when the link to monetary price is not there or not apparent. Alternatives
to monetary price have been suggested (e.g. Belshaw 1959, 1965, 1969, 1980),
and are legion in studies of non-monetary societies. Whatever the practical
difficulties — and there are many — it
appears there are few difficulties of theoretical principle. Every
economics freshman student is told that maximization in relation to
consumption behaviour is not to be thought of in terms of a single
commodity, but of optimal mixes in a preference schedule. Thereafter, in the
handling of such institutions as the firm, the principle gets thrown away,
profit being, usually, the single determinant. But if the principle of optimal
mix were applied to all behaviour, an understanding of the work place, of
contracts, of exchange relationships, or interactive dynamics would be more
revealing, if not as <precise> as that provided in econometric models. To
some extent the raw data are there. In
anthropology, in the beginning is ethnography. Despite holistic principles, no
ethnography can be culturally complete. In all such studies the data are
selected in accordance with theoretical or interpretive canons of
significance, which vary according to problem. Yet an ethnography, with
or
without quantification, is a statement of an effective demand schedule for the
people concerned, that is a broad statement of what individuals
actually consume at the moment of observation. The effective demand schedule
is an essential tool in economic thinking, which the conventional tools of
economics simply cannot approach with the same richness and directness as is
achieved in ethnography. Nor can conventional economics take into account an
enormous range of <<satisfactions>> which are routinely handled in
ethnography — the
demand for religious ritual, story-telling, recreation, even sleep, sport,
work as a value in itself, learning, and on and on. How, one may ask, can
economists have a realistic view of the competition and linkages that exist
between elements in a demand schedule without knowing about such things? Ethnographies
— though
here, customarily, they are not as strong as they might be — also
have things to say about the potential demand schedule, that is those
things people would like to have, do, experience - those things they
would direct their actions and energies towards obtaining by way of
satisfaction, if the costs were right. This ethnographies do by
reference to enduring values, ideologies, structures, ambitions, frustrations
and so forth. Few
economists have the patience to read ethnographies, and few ethnographic
studies revealing the cultural behavior of entrepreneurs and wheeler-dealers
of the kind responsible for economists’ data have been made. They should be
and will be. Ethnographic
data are far too diffuse, even when quantified, to permit of immediate
incorporation into models which make major use of national statistics. Yet the
effort is immensely important. I would like to see economists and
anthropologists, both, working on the translation of such types of data into
models which would avoid the concept of the exogenous in its current forms. Similar
arguments apply to the consideration of costs, where nonmaterial issues are,
for example, often behind the so-called <conservatism> of populations
confronted with the possibilities of technical innovation, or with choices
between immediate maximal exploitation of a resource or its husbanding for the
future (Belshaw, 1976). The
work of the economist Gary S. Becker (1976, 1981) suggests that, to some
degree, the extensions I have advocated are feasible within the terms
of economists’ forms of reasoning. The work is far too little read among
anthropologists, who would benefit their own discipline by responding to its
stimulus. How can it
be carried forward?
Where is it
wrong? What can be
done about incorporating <soft> ethnography? Nevertheless, it
is but a brave
beginning, and needs development and extension in two directions. In
The Economic Approach to Human Behaviour (1976) Becker rejects the
Robbinsian approach to <<the economic>> -- that which represents
the application of scarce means to infinite ends — as
being embarassingly broad, without sufficient focus, and holds that
<<the economic>> should be that which relates to the market. He
mostly maintains this perspective in his essays, though it is
pretty well abandoned, as it has to be, for some of his papers in A Treatise on the Family (1981). The
so-called <substantive> school of economic anthropology would tend to
agree, classifying <economies> into those based on reciprocity, redistribution,
and market forces (Polanyi, 1957). (But if <<<the economic>> is that which is connected to
markets, how then can reciprocal systems be <<economic>>???). Others,
including myself, criticize such a distinction in its purist form, since it
over-emphasizes the
differences rather than the similarities and continuities in the social and
historical process. Scarcity, supply and demand, exchange transactions, and
similar processes are present in all societies: so is the operation of
choice. To
consider transactions and choices together is, for example, to reveal
interactions between behaviour in a monetary market and behaviour outside that
market, which is fundamental to the understanding of the market itself (Mintz,
1959). Further, the significance of Marcel Mauss’ work in Essai sur le
don lies not in his treatment of gifts qua gifts, but in laying the
groundwork for contemporary social exchange theory, in which all human
interactions can be seen as exchange transactions, with attendant costs,
benefits and real, if not monetary, prices. (The principle has even been
extended, with advantage, into animal and insect biology). To make the most of
social exchange theory, we ethnographers would do well to adapt Becker’s
models, and ask ourselves how we can make ethnography useful in that
adaptation (not necessarily retaining all the logical formalism of the
models). The
second direction of extension and development is to wrestle with the
ethnographic real. Becker realizes he must do this when be treats of
institutions such as polygyny, which are mostly (not by any means entirely) foreign
to Western culture, but it
has to be (and I do
not fault him) entirely superficial at this stage. He uses appropriate
non-economists’ literature when dealing with primates. But he does not refer
to or incorporate either ethnographic or theoretical work in anthropology on
such areas as altruism, social interactions, divorce or family evolution. On
other matters such as division of labour the references are unsystematic and
less than minimal. The problem is not with Becker’s brilliant pioneering
work (some have suggested worthy of the Nobel Prize in Economics), but with
the failure of anthropologists to take up the challenge in a form that forces
economists to take their work seriously — without
abandoning its integrity. It
has frequently been said that the basic classical model of choice and
rationality, which makes no moral judgements as to ends, and accepts that when
people choose it
represents their
valuations at that time and place and bearing the applicable costs,
material or non-material in mind, together with an evaluation, conscious or
unconscious, of alternatives is tautological. And hence of no value.
Tautological it
certainly is. But it
shows the value of tautology, since indeed one can use it, if
not to discover final causes, then to forecast future events and to predict
logical extensions of theory. Hartley states that Becker’s approach is
<<often guilty of adhocery and of failing to provide distinctive
hypotheses capable of being refuted>>. Not so. Such
charges are also levelled against the extension of the model. It appears to be
a sin to embrace an enormous range of data into a basically simple, single,
model, although in other sciences the canons of preferred explanation call for
such abstraction and simplicity. Yet the power the model gives to explanatory
elucidation of empirical material is considerable, and general, testable
(provided some form of quantitative judgement is possible) hypotheses abound. Some
examples. In applied or developmental work, or work analyzing social change
empirically, it
more often than
not turns out that forecasts can be made on the basis of cost benefit
analysis, or something similar, taking into account the wider and non-material
factors I have indicated as significant. The forecast fails. The model then
enjoins the search for <<the missing factors>>, or the factors
that were not appropriately weighted in the original scheme. The awareness of
the need to adjust the schedule of preferences accordingly is surely
fundamental to subsequent forecasts, and if used properly adds to our
knowledge of the interplay between elements of culture which affect choices. Second
example. The assumption of rationality in the existing model is frequently
challenged (e.g. Godelier, 1966). But such challenges ignore the special
meaning of rationality in economics, which has nothing to do with psychologically
rational processes or otherwise in the selection of goals. Usually, with
such challenges, <non-rationality> can be broken down into component
parts, such as search for prestige, altruism, anti-social behaviour,
asceticism, fanaticism. But in fact all we are doing here is to add elements
to the preference schedule, saying that people want these things, that
they are different perhaps from the norms of Western society (perhaps...) and
in so doing we add distinctive, sometimes curious, production functions for
their satisfaction. Third
example. From anthropology one can pull out numerous general hypotheses,
dealing with the way cultural elements dynamically articulate. That is, in
them, we account for adjustments in preference schedules over time and in
response to new conditions. Some are at the level of deductions close to the
basic model (Belshaw, 1969), as <<Where
actors perceive that ends are incompatible, conflict, synthesis and
adjustment will occur with a view to making them compatible>>. Surely
this sets the stage of the possibility of dis-proof (i.e. the search for
contrary cultural examples) and refinement, that is defining the conditions
under which the various alternative empirical paths will be followed. Other
hypotheses derive from the independent examination of social phenomena. Thus
the study of millenarian movements posits specific conditions under which,
among other things, populations will engage in the immediate destruction of
resources in anticipation of special kinds of gain (Jarvie, 1964).
(Ethnocentric observers call this <irrational>, but in the economic
model it
is highly rational,
in that the people are behaving in accordance with perceptions that state
that destruction is the means to the desired salvation). Such generalizations
about millenarian movements can be extended, with appropriate modification,
to embrace wider phenomena such as more conventional social movements, and
other kinds of social protest, into one over-riding formula, though this has
not yet been completely done. And it has
been used, albeit clumsily, for an attempt at historical forecasting, which
was in fact partially falsified (Belshaw, 1969, 1976). (I used the model to
forecast the outburst of millenial movements in the Palestinian diaspora,
whereas in modified form it burst out in Iran —- possibly
in accordance with the model, but not as I stated it). Many
such hypotheses, since they deal with the articulation of aspects of society
and culture, institutions, social and natural environmental factors,
cultural categories, and so forth, speak directly to regularities of inter-action
which the symposium papers identified as linkages (where anthropology and
economics have much to say to one another). (Linkages = articulation
in Belshaw, 1969). A
final issue. Economists are busy trying to find effective ways of handling
variations in the state of knowledge, to which the crucial concept of
innovation is closely related. From its very beginning, though in disguised
language, anthropology and ethnology, through the study of social and cultural
change, even of evolution, have been preoccupied with similar questions.
<<The state of knowledge>> is of course nothing more nor less than
the state of culture, including symbols, perceptions, ideologies and moral
codes. Anthropologists
are now chary of jumping to conclusions that given societies or groups are
inherently more innovative than others, though development economists
sometimes cling to the despair of such an idea. Our empirical materials do
concede that innovations may be concentrated in varying areas of culture at
any given time (religion as against agricultural technology, for example). Our
theories include general statements about the probability of innovations being
produced and/or accepted or rejected, and the ways in which they are
necessarily adapted when adopted. There are also general statements about what
causes innovation and what factors are relevant to the prediction of a rate of
innovation (Belshaw, 1969). If economists are to include knowledge and/or
innovation as factors of production, anthropologists have much to say, both
theoretically and empirically. Economists
continue to ask, what relevance does ethnology have to modern society? I need
not belabour the point to this readership, since so many of our colleagues are
directly involved in such societies. But there is of course a different
relevance also. It was the study of the potlatch among North American Indians
and of the kula of the Trobriand Islands which enabled Marcel Mauss to develop
ideas which are now being applied to Western political parties, personal and
subjective relations in the behaviour of entrepreneurs, and the enormous
effect that ceremonial exchange has within the confines of the capitalist
economy. Ways of thinking about small bounded groups enables analogies to be
used in the analysis of boundaries and articulations between ethnic groups
and social classes, between sub-cultures (including those of professionals,
entrepreneurs and bureaucrats) and the nation state. Studies of small scale
entrepreneurs carried out in Fijian villages contain points entirely
compatible, historically, with considerations affecting OPEC oil ministers, and the Swat Pathan were not
irrelevant for classic studies of Norwegian fishermen. To
conclude, the enormous material now present in the theory and practice of
anthropology is essential to the consideration of economists’ exogenous
variables. It would ultimately be more effective if variables could be
incorporated directly into the basic models. Nevertheless, even if conservatism
prevents this, each exogenous variable, whenever defined, is open to
ethnographic data and anthropological hypotheses, and can be refined into many
traceable parts. To achieve this is a programmatic matter, an issue of
scientific strategy and priorities, rather than one of insuperable
intellectual obstacles. I
wish to acknowledge the support of Unesco and the International Social Science
Council for participation in the symposium, and of the Wenner Gren Foundation
for Anthropological Research for a general writing grant that enabled me to
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