Arapesh and Embedded vs. Disembedded economy :: Essays Papers

Arapesh and Embedded vs. Disembedded economy Polanyi says, regarding the economy, â€Å"the economic process†¦.is embedded in noneconomic institutions.† An embedded economy is an economy in which economic activities occur such as, production and distribution; however other activities, which are not economic also occur. Activities such as forming friendships or helping other people may be happening, but it might just seem like the normal economic process because it is an embedded economy. When Polanyi says that the economy is â€Å"embedded in noneconomic institutions† he means that while economic activity is occurring, it is occurring for noneconomic reasons. The economic activity may be occurring in order to continue a friendship or help someone. Activities in an embedded economy often seem like they are not economic activities. They seem like this because usually the reason the economic activity is occurring is for noneconomic reasons. For example, if two bakers both produce wheat bread, but do not eat their own, instead they exchange bread, because they want to have a reason to be friends. This situation does not seem like economic activity, it seems like two people sharing their food. It actually is economic activity, because the two bakers are both producing and distributing their bread. So, even though the bakers are only exchanging the bread because they want to maintain their friendship, what they are doing is an economic activity that would happen in an embedded economy. Today most economic activity is considered to be part of a disembedded economy. In a disembedded economy, economic activity occurs only for economic reasons, so it is the opposite of an embedded economy. Economic activity is completely independent from such institutions as family or friendship. An example, of activity in a disembedded economy is a person going to a grocery store and buying bread. There is no other institution involved in the economic process of production and distribution of the bread which is why this would occur in a disembedded economy. The producer of the bread is making the bread so that he can sell it and get money for it, the consumer is buying the bread so it will belong to him. Economic activities of production and distribution are perceived by the Arapesh to just be part of their society. Everything that the Arapesh use and take care of daily belongs to someone else, whether it is their trees or pigs. The Arapesh believe that they must share what they own with the other Arapesh to help them survive.