Economic Anthropology:
                 Its a field that explains human economic behavior in the widest historic,geographic and cultural scope. 

Formalism vs Substantivism:

                 Karl Polanyi in his work called "The Great Transformation" made the debate.

  • System oriented economy
  • Substantive economy
  • Production Optimisers (They work according to the needs of society and work just enough to survive and produce adequate surplus)
  • Primitive Economy
  • Economic decision making is based on social relations,cultural values,moral concerns,religion etc.. but not based on individual choices
  • Kinship based economy or non market based economy
  • According to Polanyi , Substantive economy is an instituted process of interaction between man and his environment which results in a continuous supply of want satisfying material means
  • Unlimited resources and less population density 
  • Non Market Economy
  • Primitive Socialism
Advantages and Disadvantages of Substantive Economy:

           Equality,Solidarity,Security and fraternity are maintained where as there will be a very slow development

Proponents of Substantivism: George Dalton, Paul Bohannan

  • Actor oriented economy
  • Formal Economy
  • Production Maximisers
  • Based on individual choices
  • Market Based Economy
  • Rational Economy
  • Neo Classical Economy
  • Political Economy
  • Alienation is an important consequence of actor oriented economy
  • Scarce Resources but very high population density
  • Capitalism is found 
Advantages and Disadvantages:
         Fast development is found but inequality,pseudo consumerism,conflict are found. Rich become richer and poor become more poorer.

Proponents of Formalism: Raymond Firth,Harold K Schneider

Previous questions on this topic:

1. Critically examine formalists and substantivists view on applicability of economic laws in primitive societies(2015)
2. Formalism vs Substantivism (2011)

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