Gift economy
Encyclopedia

In the social sciences, a gift economy (or gift culture) is a society where valuable goods and services
Goods and services
In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax....

 are regularly given without any explicit agreement for immediate or future rewards (i.e. no formal quid pro quo
Quid pro quo
Quid pro quo most often means a more-or-less equal exchange or substitution of goods or services. English speakers often use the term to mean "a favour for a favour" and the phrases with almost identical meaning include: "give and take", "tit for tat", "this for that", and "you scratch my back,...

exists). Ideally, simultaneous or recurring giving serves to circulate and redistribute valuables within the community. The organization of a gift economy stands in contrast to a barter economy or a market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

. Informal custom governs exchanges, rather than an explicit exchange of goods or services for money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...

 or some other commodity
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....

.

Various social theories
Social theory
Social theories are theoretical frameworks which are used to study and interpret social phenomena within a particular school of thought. An essential tool used by social scientists, theories relate to historical debates over the most valid and reliable methodologies , as well as the primacy of...

 concerning gift economies exist. Some consider the gifts to be a form of reciprocal altruism
Reciprocal altruism
In evolutionary biology, reciprocal altruism is a behaviour whereby an organism acts in a manner that temporarily reduces its fitness while increasing another organism's fitness, with the expectation that the other organism will act in a similar manner at a later time...

. Another interpretation is that social status is awarded in return for the gifts.

Gift economies were prevalent before the advent of market economies, but gradually disappeared as societies became more complex. Some gift economies survived until modern historical times, particularly in pre-industrial societies, but no modern-day society is structured as a gift economy. Aspects of gift societies still exist in the modern world, particularly in religious gift giving and in the information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

 community.

History

Contrary to popular conception, there is no evidence that societies relied primarily on barter before using money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...

 for trade. Instead, non-monetary societies operated largely along the principles of gift economics. When barter did in fact occur, it was usually between either complete strangers or would-be enemies.

Lewis Hyde
Lewis Hyde
Lewis Hyde is a scholar, essayist, translator, cultural critic and writer whose scholarly work focuses on the nature of imagination, creativity, and property.-Early life:...

 locates the origin of gift economies in the sharing of food, citing as an example the Trobriand Islander
Trobriand Islands
The Trobriand Islands are a 450 km² archipelago of coral atolls off the eastern coast of New Guinea. They are situated in Milne Bay Province in Papua New Guinea. Most of the population of 12,000 indigenous inhabitants live on the main island of Kiriwina, which is also the location of the...

 protocol of referring to a gift in the Kula exchange ring
Kula ring
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.The Kula ring spans 18 island communities of the Massim archipelago, including the Trobriand Islands...

 as "some food we could not eat," even though the gift is not food, but an ornament purposely made for passing as a gift. The potlatch
Potlatch
A potlatch is a gift-giving festival and primary economic system practiced by indigenous peoples of the Pacific Northwest Coast of Canada and United States. This includes Heiltsuk Nation, Haida, Nuxalk, Tlingit, Makah, Tsimshian, Nuu-chah-nulth, Kwakwaka'wakw, and Coast Salish cultures...

 also originated as a 'big feed'. Hyde argues that this led to a notion in many societies of the gift as something that must "perish".

The anthropologist Marshall Sahlins
Marshall Sahlins
Marshall David Sahlins is a prominent American anthropologist. He received both a Bachelors and Masters degree at the University of Michigan where he studied with Leslie White, and earned his Ph.D. at Columbia University in 1954 where his main intellectual influences included Karl Polanyi and...

 writes that Stone Age
Stone Age
The Stone Age is a broad prehistoric period, lasting about 2.5 million years , during which humans and their predecessor species in the genus Homo, as well as the earlier partly contemporary genera Australopithecus and Paranthropus, widely used exclusively stone as their hard material in the...

 gift economies were, as evidenced by their nature as gift economies, economies of abundance, not scarcity, despite modern readers' typical assumption of objective poverty.

Gift economies were replaced by market economies
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

 based on commodity money
Commodity money
Commodity money is money whose value comes from a commodity out of which it is made. It is objects that have value in themselves as well as for use as money....

, as the emergence of city states made money a necessity.

Characteristics

A gift economy normally requires the gift exchange to be more than simply a back-and-forth between two individuals. For example, a Kashmir
Kashmir
Kashmir is the northwestern region of the Indian subcontinent. Until the mid-19th century, the term Kashmir geographically denoted only the valley between the Great Himalayas and the Pir Panjal mountain range...

i tale tells of two Brahmin
Brahmin
Brahmin Brahman, Brahma and Brahmin.Brahman, Brahmin and Brahma have different meanings. Brahman refers to the Supreme Self...

 women who tried to fulfill their obligations for alms-giving simply by giving alms back and forth to one another. On their deaths they were transformed into two poisoned wells from which no one could drink, reflecting the barrenness of this weak simulacrum of giving. This notion of expanding the circle can also be seen in societies where hunters give animals to priest
Priest
A priest is a person authorized to perform the sacred rites of a religion, especially as a mediatory agent between humans and deities. They also have the authority or power to administer religious rites; in particular, rites of sacrifice to, and propitiation of, a deity or deities...

s, who sacrifice
Sacrifice
Sacrifice is the offering of food, objects or the lives of animals or people to God or the gods as an act of propitiation or worship.While sacrifice often implies ritual killing, the term offering can be used for bloodless sacrifices of cereal food or artifacts...

 a portion to a deity
Deity
A deity is a recognized preternatural or supernatural immortal being, who may be thought of as holy, divine, or sacred, held in high regard, and respected by believers....

 (who, in turn, is expected to provide an abundant hunt). The hunters do not directly sacrifice to the deity themselves.

Many societies have strong prohibitions against turning gifts into trade or capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...

 goods. Anthropologist Wendy James writes that among the Uduk people
Uduk people
The Uduk are a Nilo-Saharan group from eastern Sudan. They call themselves Kwanim Pa and are culturally and linguistically related to neighboring communities, such as the Gumuz and the Kwama from the Sudan-Ethiopia borderland. Due to the recent war in southern Sudan they have been forced to...

 of northeast Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...

 there is a strong custom that any gift that crosses subclan boundaries must be consumed rather than invested. For example, an animal given as a gift must be eaten, not bred. However, as in the example of the Trobriand armbands and necklaces, this "perishing" may not consist of consumption as such, but of the gift moving on. In other societies, it is a matter of giving some other gift, either directly in return or to another party. To keep the gift and not give another in exchange is reprehensible. "In folk tales," Hyde remarks, "the person who tries to hold onto a gift usually dies."

Carol Stack's All Our Kin describes both the positive and negative sides of a network of obligation and gratitude effectively constituting a gift economy. Her narrative of The Flats, a poor Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...

 neighborhood, tells in passing the story of two sisters who each came into a small inheritance. One sister hoarded the inheritance and prospered materially for some time, but was alienated from the community. Her marriage ultimately broke up, and she integrated herself back into the community largely by giving gifts. The other sister fulfilled the community's expectations, but within six weeks had nothing material to show for the inheritance but a coat and a pair of shoes.

Social structures

There are many examples of how a gift economy works in modern culture within a mixed economy
Mixed economy
Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety...

, such as marriage
Marriage
Marriage is a social union or legal contract between people that creates kinship. It is an institution in which interpersonal relationships, usually intimate and sexual, are acknowledged in a variety of ways, depending on the culture or subculture in which it is found...

, family
Family
In human context, a family is a group of people affiliated by consanguinity, affinity, or co-residence. In most societies it is the principal institution for the socialization of children...

, friendship
Friendship
Friendship is a form of interpersonal relationship generally considered to be closer than association, although there is a range of degrees of intimacy in both friendships and associations. Friendship and association are often thought of as spanning across the same continuum...

, kinship
Kinship
Kinship is a relationship between any entities that share a genealogical origin, through either biological, cultural, or historical descent. And descent groups, lineages, etc. are treated in their own subsections....

, and social network
Social network
A social network is a social structure made up of individuals called "nodes", which are tied by one or more specific types of interdependency, such as friendship, kinship, common interest, financial exchange, dislike, sexual relationships, or relationships of beliefs, knowledge or prestige.Social...

 structures.

Pacific islanders

Pacific Island societies prior to the nineteenth century were essentially gift economies. This practice still endures in parts of the Pacific today - for example in some outer islands of the Cook Islands
Cook Islands
The Cook Islands is a self-governing parliamentary democracy in the South Pacific Ocean in free association with New Zealand...

. In Tokelau
Tokelau
Tokelau is a territory of New Zealand in the South Pacific Ocean that consists of three tropical coral atolls with a combined land area of 10 km2 and a population of approximately 1,400...

, despite the gradual appearance of a market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

, a form of gift economy remains through the practice of inati, the strictly egalitarian sharing of all food resources in each atoll
Atoll
An atoll is a coral island that encircles a lagoon partially or completely.- Usage :The word atoll comes from the Dhivehi word atholhu OED...

. On Anuta
Anuta
Anuta is a small high island in the southeastern part of the Solomon Islands province of Temotu, the smallest permanently inhabited isolated Polynesian island.-Description:...

 as well, a gift economy called "Aropa" still exists.

There are also a significant number of diasporic
Diaspora
A diaspora is "the movement, migration, or scattering of people away from an established or ancestral homeland" or "people dispersed by whatever cause to more than one location", or "people settled far from their ancestral homelands".The word has come to refer to historical mass-dispersions of...

 Pacific Islander communities in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

, and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 that still practice a form of gift economy. Although they have become participants in those countries' market economies, some seek to retain practices linked to an adapted form of gift economy, such as reciprocal gifts of money, or remittances back to their home community. The notion of reciprocal gifts is seen as essential to the fa'aSamoa
Fa'asamoa
Fa'asamoa literally means the ways of Samoa. Fa'a is a Samoan prefix that can be translated to English as 'the ways of'. Fa'a could also mean 'to do' or 'to implement' as in the word Fa'atonu .-Concept:...

("Samoa
Samoa
Samoa , officially the Independent State of Samoa, formerly known as Western Samoa is a country encompassing the western part of the Samoan Islands in the South Pacific Ocean. It became independent from New Zealand in 1962. The two main islands of Samoa are Upolu and one of the biggest islands in...

n way of life"), the anga fakatonga ("Tonga
Tonga
Tonga, officially the Kingdom of Tonga , is a state and an archipelago in the South Pacific Ocean, comprising 176 islands scattered over of ocean in the South Pacific...

n way of life"), and the culture of other diasporic Pacific communities.

Papua New Guinea

The Kula ring
Kula ring
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.The Kula ring spans 18 island communities of the Massim archipelago, including the Trobriand Islands...

 still exists to this day, as do other exchange systems in the region, such as Moka exchange
Moka exchange
The Moka is a system of exchange in the Mt. Hagen area, Papua New Guinea.It is a complex system of exchange that relies heavily on pigs as currency for status in the community....

 in the Mt. Hagen area, on Papua New Guinea.

Native Americans

Native American
Indigenous peoples of the Americas
The indigenous peoples of the Americas are the pre-Columbian inhabitants of North and South America, their descendants and other ethnic groups who are identified with those peoples. Indigenous peoples are known in Canada as Aboriginal peoples, and in the United States as Native Americans...

s who lived in the Pacific Northwest
Pacific Northwest
The Pacific Northwest is a region in northwestern North America, bounded by the Pacific Ocean to the west and, loosely, by the Rocky Mountains on the east. Definitions of the region vary and there is no commonly agreed upon boundary, even among Pacific Northwesterners. A common concept of the...

 (primarily the Kwakiutl
Kwakiutl
The term Kwakiutl, historically applied to the entire Kwakwaka'wakw ethno-linguistic group of originally 28 tribes, comes from one of the Kwakwaka'wakw tribes, the Kwagu'ł or Kwagyeulth, at Fort Rupert, with whom Franz Boas did most of his anthropological work and whose Indian Act Band government...

), practiced the potlatch
Potlatch
A potlatch is a gift-giving festival and primary economic system practiced by indigenous peoples of the Pacific Northwest Coast of Canada and United States. This includes Heiltsuk Nation, Haida, Nuxalk, Tlingit, Makah, Tsimshian, Nuu-chah-nulth, Kwakwaka'wakw, and Coast Salish cultures...

 ritual, where leaders give away large amounts of goods to their followers, strengthening group relations. By sacrificing accumulated wealth, a leader gained a position of honor.

Mexico

In the Sierra Tarahumara of North Western Mexico, a custom exists called kórima. This custom says that it is one's duty to share his wealth with anyone.

Spain

In place of a market, anarcho-communists, such as those who inhabited some Spanish villages in the 1930s, support a currency-less gift economy where goods and services are produced by workers and distributed in community stores where everyone (including the workers who produced them) is essentially entitled to consume whatever they want or need as payment for their production of goods and services.

Burning Man

Burning Man
Burning Man
Burning Man is a week-long annual event held in the Black Rock Desert in northern Nevada, in the United States. The event starts on the Monday before the American Labor Day holiday, and ends on the holiday itself. It takes its name from the ritual burning of a large wooden effigy on Saturday evening...

 is a week-long annual art and community event held in the Black Rock Desert in northern Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...

, in the United States. The event is described as an experiment in community, radical self-expression, and radical self-reliance. The event outlaws commerce (except for ice, coffee, and tickets to the event itself) and encourages gifting. Gifting is one the 10 guiding principles, as participants to Burning Man (both the desert festival and the year-round global community) are encouraged to rely on a gift economy. The practice of gifting at Burning Man is also documented by the 2002 documentary film "Gifting It: A Burning Embrace of Gift Economy", as well as by Making Contact's radio show "How We Survive: The Currency of Giving [encore]".

Buddhism

In Southeast Asia, Theravada Buddhists continue to sponsor "Feasts of Merit" that are very similar to potlatch
Potlatch
A potlatch is a gift-giving festival and primary economic system practiced by indigenous peoples of the Pacific Northwest Coast of Canada and United States. This includes Heiltsuk Nation, Haida, Nuxalk, Tlingit, Makah, Tsimshian, Nuu-chah-nulth, Kwakwaka'wakw, and Coast Salish cultures...

. Such feasts usually involve many sponsors and occur mainly before and after the rainy season.

Hinduism

Bhiksha
Bhiksha
Bhiksha is food obtained by asking for alms. Bhiksha signifies a Hindu tradition of begging for alms with the purpose of self-effacement or ego-conquering....

is a devotional offering, usually food, presented at a temple or to a swami
Swami
A swami sometimes abbreviated "Sw." is an ascetic or yogi who has been initiated into the religious monastic order founded by Adi Sankara, or to a religious teacher.The Oxford English Dictionary gives the etymology as...

 or a religious Brahmin
Brahmin
Brahmin Brahman, Brahma and Brahmin.Brahman, Brahmin and Brahma have different meanings. Brahman refers to the Supreme Self...

 who in turn provides a religious service (karmkand
Karmkand
Karmkand refers to ritual services proferred by swamis or religious Brahmins in exchange for bhiksha. -See also:* Dharma* Karma* Maya* Bhagavad Gita* Hinduism* Brahmin* Indian Caste System...

) or instruction.

Islam

In Islam
Islam
Islam . The most common are and .   : Arabic pronunciation varies regionally. The first vowel ranges from ~~. The second vowel ranges from ~~~...

, the free gift of alms
Alms
Alms or almsgiving is a religious rite which, in general, involves giving materially to another as an act of religious virtue.It exists in a number of religions. In Philippine Regions, alms are given as charity to benefit the poor. In Buddhism, alms are given by lay people to monks and nuns to...

 is a religious requirement, which has made social foundations an important part of Muslim communities.

Judaism

According to the Hebrew Bible
Hebrew Bible
The Hebrew Bible is a term used by biblical scholars outside of Judaism to refer to the Tanakh , a canonical collection of Jewish texts, and the common textual antecedent of the several canonical editions of the Christian Old Testament...

, tzedakah
Tzedakah
Tzedakah or Ṣ'daqah in Classical Hebrew is a Hebrew word commonly translated as charity, though it is based on the Hebrew word meaning righteousness, fairness or justice...

 is a religious obligation that must be performed regardless of financial standing. It is considered as one of the three main acts that can annul a less than favorable heavenly decree.

Information gift economies

Information is particularly suited to gift economies, as information is a nonrival good and can be gifted at practically no cost.

Science

Traditional scientific research can be thought of as an information gift economy. Scientists produce research papers and give them away through journals and conferences, though access to the journals themselves can be expensive. Other scientists freely refer to such papers. All scientists with access to those journals can therefore benefit from the increased pool of knowledge. The original scientists receive no direct benefit from others building on their work, except an increase in their reputation. Failure to cite and give credit to original authors (thus depriving them of reputational effects) is considered improper behavior.

Filesharing

Markus Giesler, in his ethnography
Ethnography
Ethnography is a qualitative method aimed to learn and understand cultural phenomena which reflect the knowledge and system of meanings guiding the life of a cultural group...

 "Consumer Gift Systems" has developed music downloading as a system of social solidarity based on gift transactions.

Open-source software

In his essay "Homesteading the Noosphere
Homesteading the Noosphere
"Homesteading the Noosphere" is an essay written by Eric S. Raymond about the social workings of open-source software development...

", noted computer programmer Eric S. Raymond
Eric S. Raymond
Eric Steven Raymond , often referred to as ESR, is an American computer programmer, author and open source software advocate. After the 1997 publication of The Cathedral and the Bazaar, Raymond was for a number of years frequently quoted as an unofficial spokesman for the open source movement...

 opined that open-source software
Open-source software
Open-source software is computer software that is available in source code form: the source code and certain other rights normally reserved for copyright holders are provided under a software license that permits users to study, change, improve and at times also to distribute the software.Open...

 developers have created "a 'gift culture' in which participants compete for prestige by giving time, energy, and creativity away". Members of the Linux
Linux
Linux is a Unix-like computer operating system assembled under the model of free and open source software development and distribution. The defining component of any Linux system is the Linux kernel, an operating system kernel first released October 5, 1991 by Linus Torvalds...

 community often speak of their community as a gift economy.

Wikipedia

Millions of articles are available on Wikipedia
Wikipedia
Wikipedia is a free, web-based, collaborative, multilingual encyclopedia project supported by the non-profit Wikimedia Foundation. Its 20 million articles have been written collaboratively by volunteers around the world. Almost all of its articles can be edited by anyone with access to the site,...

, a free on-line encyclopedia, and almost none of its innumerable authors and editors receive any direct material reward.

Social theories

Various social theories
Social theory
Social theories are theoretical frameworks which are used to study and interpret social phenomena within a particular school of thought. An essential tool used by social scientists, theories relate to historical debates over the most valid and reliable methodologies , as well as the primacy of...

 concerning gift economies exist. Some consider the gifts to be a form of reciprocal altruism
Reciprocal altruism
In evolutionary biology, reciprocal altruism is a behaviour whereby an organism acts in a manner that temporarily reduces its fitness while increasing another organism's fitness, with the expectation that the other organism will act in a similar manner at a later time...

. Another interpretation is that social status is awarded in return for the gifts. Consider for example, the sharing
Sharing
Sharing the joint use of a resource or space. In its narrow sense, it refers to joint or alternating use of an inherently finite good, such as a common pasture or a shared residence. It is also the process of dividing and distributing. Apart from obvious instances, which we can observe in human...

 of food
Food
Food is any substance consumed to provide nutritional support for the body. It is usually of plant or animal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals...

 in some hunter-gatherer
Hunter-gatherer
A hunter-gatherer or forage society is one in which most or all food is obtained from wild plants and animals, in contrast to agricultural societies which rely mainly on domesticated species. Hunting and gathering was the ancestral subsistence mode of Homo, and all modern humans were...

 societies, where food-sharing is a safeguard against the failure of any individual's daily foraging. This custom may reflect concern for the well-being of others, it may be a form of informal insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...

, or may bring with it social status or other benefits.

Hyde

According to Lewis Hyde
Lewis Hyde
Lewis Hyde is a scholar, essayist, translator, cultural critic and writer whose scholarly work focuses on the nature of imagination, creativity, and property.-Early life:...

, a traditional gift economy is based on "the obligation
Obligation
An obligation is a requirement to take some course of action, whether legal or moral. There are also obligations in other normative contexts, such as obligations of etiquette, social obligations, and possibly...

 to give, the obligation to accept, and the obligation to reciprocate," and that it is "at once economic, juridical, moral, aesthetic, religious, and mythological." He describes the spirit of a gift economy (and its contrast to a market economy) as:

Hyde also argues that there is a difference between a "true" gift given out of gratitude
Gratitude
Gratitude, thankfulness, gratefulness, or appreciation is a feeling, emotion or attitude in acknowledgment of a benefit that one has received or will receive. The experience of gratitude has historically been a focus of several world religions, and has been considered extensively by moral...

 and a "false" gift given only out of obligation. In Hyde's view, the "true" gift binds us in a way beyond any commodity transaction, but "we cannot really become bound to those who give us false gifts."

Hyde argues that when a primarily gift-based economy is turned into a commodity-based economy, "the social fabric of the group is invariably destroyed." Much as there are prohibitions against turning gifts into capital, there are prohibitions against treating gift exchange as barter. Among the Trobrianders, for example, treating Kula as barter is considered a disgrace. Hyde writes that commercial goods can generally become gifts, but when gifts become commodities, the gift "...either stops being a gift or else abolishes the boundary... Contracts of the heart lie outside the law and the circle of gifts is narrowed, therefore, whenever such contracts are narrowed to legal relationships."

Mauss

Sociologist Marcel Mauss
Marcel Mauss
Marcel Mauss was a French sociologist. The nephew of Émile Durkheim, Mauss' academic work traversed the boundaries between sociology and anthropology...

 argues a different position, that gifts entail obligation and are never 'free'. According to Mauss, while it is easy to romanticize a gift economy, humans do not always wish to be enmeshed in a web of obligation. Mauss wrote, "The gift not yet repaid debases the man who accepts it," a lesson certainly not lost on the young person seeking independence who decides not to accept more money or gifts from his or her parents. And as Hyde writes, "There are times when we want to be aliens and strangers." We like to be able to go to the corner store, buy a can of soup, and not have to let the store clerk into our affairs or vice versa. We like to travel on an airplane without worrying about whether we would personally get along with the pilot. A gift creates a "feeling bond." Commodity exchange does not. The French writer Georges Bataille
Georges Bataille
Georges Bataille was a French writer. His multifaceted work is linked to the domains of literature, anthropology, philosophy, economy, sociology and history of art...

 in his book La part Maudite use Mauss's argument in order to construct a theory of economy: to his point of view the structure of gift forms the presupposition for all possible economy. Particularly interested about the potlatch as described by Mauss, Bataille claims that its antagonistic character obliges the receiver of the gift to confirm a subjection; the structure of the gift can refer thus immediately to a practice that bears out different roles for the parts that undertake an action in it, installing in this act of donating the Hegelian dipole of master and slave.

Kropotkin

Anarchists, particularly anarcho-primitivists and anarcho-communists, believe that variations on a gift economy may be the key to breaking the cycle of poverty
Cycle of poverty
In economics, the cycle of poverty is the "set of factors or events by which poverty, once started, is likely to continue unless there is outside intervention."...

. Therefore they often desire to refashion all of society into a gift economy. Anarcho-communists advocate a gift economy as an ideal, with neither money, nor markets, nor central planning. This view traces back at least to Peter Kropotkin
Peter Kropotkin
Prince Pyotr Alexeyevich Kropotkin was a Russian zoologist, evolutionary theorist, philosopher, economist, geographer, author and one of the world's foremost anarcho-communists. Kropotkin advocated a communist society free from central government and based on voluntary associations between...

, who saw in the hunter-gatherer tribes he had visited the paradigm of "mutual aid". "

Peter Kropotkin
Peter Kropotkin
Prince Pyotr Alexeyevich Kropotkin was a Russian zoologist, evolutionary theorist, philosopher, economist, geographer, author and one of the world's foremost anarcho-communists. Kropotkin advocated a communist society free from central government and based on voluntary associations between...

 argues that mutual benefit is a stronger incentive than mutual strife and is eventually more effective collectively in the long run to drive individuals to produce. The reason given is that a gift economy stresses the concept of increasing the other's abilities and means of production
Means of production
Means of production refers to physical, non-human inputs used in production—the factories, machines, and tools used to produce wealth — along with both infrastructural capital and natural capital. This includes the classical factors of production minus financial capital and minus human capital...

, which would then (theoretically) increase the ability of the community to reciprocate to the giving individual. Other solutions to prevent inefficiency in a pure gift economy due to wastage of resources that were not allocated to the most pressing need or want stresses the use of several methods involving collective shunning
Shunning
Shunning can be the act of social rejection, or mental rejection. Social rejection is when a person or group deliberately avoids association with, and habitually keeps away from an individual or group. This can be a formal decision by a group, or a less formal group action which will spread to all...

 where collective groups keep track of other individuals' productivity, rather than leaving each individual having to keep track of the rest of society by him or herself.

Bell

The economist Duran Bell
Duran Bell
Duran Bell is Professor Emeritus of Economics at the University of California, Irvine. He was formerly a professor there in two departments, Economics and Anthropology.-Education and early career:...

 postulates that exchanges in a gift economy are different from pure commodity exchange in that they are mainly used to build social relationships. Gifts between individuals or between groups help build a relationship, allowing the people to work together. The generosity of a gift improves a person's prestige and social standing. Differences in social rank are not defined by differences in access to goods, but rather by "his ability to give to others, the desire to accumulate being seen as an indication of weakness."

In literature

The concept of a gift economy has played a large role in works of fiction about alternate societies, especially in works of science fiction
Science fiction
Science fiction is a genre of fiction dealing with imaginary but more or less plausible content such as future settings, futuristic science and technology, space travel, aliens, and paranormal abilities...

. Examples include:
  • News from Nowhere
    News from Nowhere
    News from Nowhere is a classic work combining utopian socialism and soft science fiction written by the artist, designer and socialist pioneer William Morris...

    (1890) by William Morris
    William Morris
    William Morris 24 March 18343 October 1896 was an English textile designer, artist, writer, and socialist associated with the Pre-Raphaelite Brotherhood and the English Arts and Crafts Movement...

     is a utopian novel about a society which operates on a gift economy.
  • The Great Explosion
    The Great Explosion
    The Great Explosion is a satirical science fiction novel by Eric Frank Russell, first published in 1962. The story is divided into three sections...

    (1962) by Eric Frank Russell
    Eric Frank Russell
    Eric Frank Russell was a British author best known for his science fiction novels and short stories. Much of his work was first published in the United States, in John W. Campbell's Astounding Science Fiction and other pulp magazines. Russell also wrote horror fiction for Weird Tales, and...

     describes the encounter of a military survey ship and a Gandhian pacifist society that operates as a gift economy.
  • The Dispossessed
    The Dispossessed
    The Dispossessed: An Ambiguous Utopia is a 1974 utopian science fiction novel by Ursula K. Le Guin, set in the same fictional universe as that of The Left Hand of Darkness . The book won the Nebula Award for Best Novel in 1974, both the Hugo and Locus Awards in 1975, and received a nomination for...

    (1974) by Ursula K. Le Guin
    Ursula K. Le Guin
    Ursula Kroeber Le Guin is an American author. She has written novels, poetry, children's books, essays, and short stories, notably in fantasy and science fiction...

     is a novel about a gift economy society that had exiled themselves from their (capitalist
    Capitalism
    Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

    ) homeplanet.
  • The Mars trilogy
    Mars trilogy
    The Mars trilogy is a series of award-winning science fiction novels by Kim Stanley Robinson that chronicles the settlement and terraforming of the planet Mars through the intensely personal and detailed viewpoints of a wide variety of characters spanning almost two centuries...

    , a series of books written by Kim Stanley Robinson
    Kim Stanley Robinson
    Kim Stanley Robinson is an American science fiction writer known for his award-winning Mars trilogy. His work delves into ecological and sociological themes regularly, and many of his novels appear to be the direct result of his own scientific fascinations, such as the fifteen years of research...

     in the 1990s, suggests that new human societies that develop away from Earth
    Earth
    Earth is the third planet from the Sun, and the densest and fifth-largest of the eight planets in the Solar System. It is also the largest of the Solar System's four terrestrial planets...

     could migrate toward a gift economy.
  • The movie Pay It Forward
    Pay It Forward
    Pay It Forward is a 2000 American drama film based on the novel of the same name by Catherine Ryan Hyde. It was directed by Mimi Leder and written by Leslie Dixon...

    (2000) centers on a schoolboy who, for a school project, comes up with the idea of doing a good deed for another and then asking the recipient to "pay it forward". Although the phrase "gift economy" is never explicitly mentioned, the scheme would, in effect, create one.
  • Down and Out in the Magic Kingdom
    Down and Out in the Magic Kingdom
    Down and Out in the Magic Kingdom is a 2003 science fiction book, the first novel by Canadian author and digital-rights activist Cory Doctorow...

    (2003) by Cory Doctorow
    Cory Doctorow
    Cory Efram Doctorow is a Canadian-British blogger, journalist, and science fiction author who serves as co-editor of the blog Boing Boing. He is an activist in favour of liberalising copyright laws and a proponent of the Creative Commons organization, using some of their licences for his books...

     describes future society where rejuvenation and body-enhancement have made death obsolete, and material goods are no longer scarce, resulting in a reputation
    Reputation
    Reputation of a social entity is an opinion about that entity, typically a result of social evaluation on a set of criteria...

    -based (whuffie
    Whuffie
    Whuffie is the ephemeral, reputation-based currency of Cory Doctorow's science fiction novel Down and Out in the Magic Kingdom. This book describes a post-scarcity economy: All the necessities of life are free for the taking...

    ) economic system.
  • Wizard's Holiday
    Wizard's Holiday
    Wizard's Holiday is the seventh book in the Young Wizards series by Diane Duane. It is the sequel to A Wizard Alone.-Plot summary:When Nita's sister Dairine signs up for an intragalactic exchange program without permission, their local advisors transfer the mission to Nita and Kit. The destination...

    (2003) by Diane Duane
    Diane Duane
    Diane Duane is an American science fiction and fantasy author. Her works include the Young Wizards young adult fantasy series and the Rihannsu Star Trek novels.-Biography :...

     describes two young wizards visiting an utopian-like planet whose economy is based on gift-giving and mutual support.
  • Voyage from Yesteryear
    Voyage from Yesteryear
    Voyage from Yesteryear is a 1982 science fiction novel by the author James P. Hogan. It explores themes of anarchism and the appropriateness of certain social values in the context of high-technology....

    (1982) by James P. Hogan
    James P. Hogan (writer)
    James Patrick Hogan was a British science fiction author.-Biography:Hogan was born in London, England. He was raised in the Portobello Road area on the west side of London...

      describes a society of the embryo colonists
    Embryo space colonization
    Embryo space colonization is a theoretical interstellar space colonization concept that involves sending a robotic mission to a habitable terrestrial planet transporting frozen early-stage human embryos or the technological or biological means to create human embryos. The proposal circumvents the...

     of Alpha Centauri
    Alpha Centauri
    Alpha Centauri is the brightest star in the southern constellation of Centaurus...

     who have a post-scarcity gift economy.
  • Cradle of Saturn (1999) and its sequel The Anguished Dawn (2003) by James P. Hogan describe a colonization effort on Saturn
    Saturn
    Saturn is the sixth planet from the Sun and the second largest planet in the Solar System, after Jupiter. Saturn is named after the Roman god Saturn, equated to the Greek Cronus , the Babylonian Ninurta and the Hindu Shani. Saturn's astronomical symbol represents the Roman god's sickle.Saturn,...

    's largest satellite. Both describe the challenges involved in adopting a new economic paradigm.

See also

  • Brownie points
    Brownie points
    Brownie points in modern usage are a hypothetical social currency, which can be accrued by doing good deeds or earning favor in the eyes of another, often one's superior.-Brown Stamps:...

  • Egoboo
    Egoboo
    Egoboo is a colloquial expression for the pleasure received from public recognition of voluntary work.The term was in use in science fiction fandom no later than 1947, when it was used in a letter from Rick Sneary published in the letter column of Thrilling Wonder Stories...

  • Giving Circles
    Giving Circles
    Giving Circles are a form of philanthropy where groups of individuals donate their own money or time to a pooled fund, decide together where to give these away to charity or community projects and, in doing so, seek to increase their awareness of and engagement in the issues covered by the charity...

  • Money-free economy
    Calculation in kind
    Calculation in kind is a type of accounting based on physical magnitudes and physical quantities rather than a common unit of accounting for economic calculation. Calculation in kind, or valueless calculation, is often described as the form of calculation that would supersede monetary calculation...

  • Reciprocity (cultural anthropology)
    Reciprocity (cultural anthropology)
    In cultural anthropology and sociology, reciprocity is a way of defining people's informal exchange of goods and labour; that is, people's informal economic systems. It is the basis of most non-market economies. Since virtually all humans live in some kind of society and have at least a few...

  • Post scarcity
    Post scarcity
    Post scarcity is a hypothetical form of economy or society, in which things such as goods, services and information are free, or practically free...

     economy
  • Pay it forward
    Pay it forward
    The expression "pay it forward" is used to describe the concept of asking that a good turn be repaid by having it done to others instead. In contract law, typically there are two parties but there is the concept of third party beneficiaries. Pay it forward merely applies this contract law concept...

  • History of money
    History of money
    The history of money spans thousands of years. Numismatics is the scientific study of money and its history in all its varied forms.Many items have been used as commodity money such as natural scarce precious metals, cowry shells, barley, beads etc., as well as many other things that are thought of...


External links

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