╨╧рб▒с>■  .0■   -                                                                                                                                                                                                                                                                                                                                                                                                                                                ье┴Й@ Ё┐3jbjbqФqФ (ЎЎ3      l<<<<<<<ФФФФФ аФA .└└└└└└└└■ ,o П N, <└└└└└, Ї<<└└└ЇЇЇ└ж<└<└■ЇP"r"<<<<└■Ї Ї■<<■┤ ╘ Ж╜ФФfО■■A A ■▌ Ї▌ ■Ї├хTara DePorte 10/3/04 Risk and Motivations: Decisions in the Face of Uncertainty There are many assumptions underlying a market economy. As Polanyi suggests in his critique of the focus on economic drivers rather than social ones, one of the primary examples of a flawed assumption is that the real market is a self-regulating system, which is only true if the market were to exist devoid of any outside influencing system (social, political, environmental). Furthermore, he emphasizes that although markets inevitably exist, historically, today is the first time the entire economy is controlled and regulated by markets. In this way, Polanyi suggests a rift between the concepts of economy and market and suggests that the recent shift to a dependency on and domination by markets is incorrect in its assumptions of wealth and production superceding societal status in the decision making process. However, I would argue that the global shift to a market economy is not only changing economic structures, but is also transforming the fundamental societal structures it is based upon. It is within these dual transformations that one must analyze the potential role of the market in local economies as well as the potential societal motivators that can be used to create sustainable livelihoods and resource management practices. He values material wealth on in so far as they serve this end. Neither procrocess of production nor that of distribution is linked to specific economic interests attached to the possession of goods; but every single step in that process is geared to a number of social interests which eventually ensure that the required step be taken. Еthe economic system will be run on noneconomic motives. (Polanyi, 46). Polanyi claims that УmanТs economyФ is more focused on the procurement of social status than on the actual accrual of material wealth and/or goods. This only holds true in a society where social status is not attributed to material wealth, which is not the case in the current trends associated with mass consumptive globalization. When these two factors are codependent, then the accrual of material wealth may become the primary goal of the individual (in that it is a more direct, simpler task) in that it is directly associated with an understood increase in social status. Accordingly, one can fit ScottТs concept of Уsafety-firstФ and a greater willingness to rely on kinship ties than the disconnect of government in that there is more security in the reciprocity of those you know. Following, the desire to accrue social status within a community would simultaneously increase oneТs access to kinship-based security from risk. Polanyi points out an example of this when analyzing a Trobrian village: As long as social organization runs in its ruts, no individual economic motives need come into play; no shirking of personal effort need be feared; division of labor will automatically be ensured; economic obligations will be duly discharged; and, above all, the material means for an exuberant display of abundance at all public festivals will be providedЕThe economic system is, in effect, a mere function of social organization. (Polanyi, 49). However, there is a problem with this analysis when material wealth is the basis for assumed increases in social status and social status does not increase kinship-based security. Furthermore, the basic assumption that societal pressures supercede an individuals desire is flawed. This would appear to be the case in a capitalist-based society, where the goals and wealth of the individual is more emphasized than equity among the population. This leads to an interesting point of the goals of a society and whether more emphasis is placed on overall equality, equality in opportunity, or simply a guaranteed minimum (and maximum??) of survival, or the many variations within these precepts. Here is where the fundamental question lies: are the interests of the individual or the community to take priority? And how should this be taken into account within government policies? Both Polanyi and Scott emphasize the importance of kinship-based reliance, particularly in areas where the majority is living on or near subsistence levels. Furthermore, individuals or entire communities who have created local economies around subsistence rather than market systems have eliminated the risks associated with the market economy, particularly a new or emerging market economy. ScottТs Уsafety firstФ hypothesis is interesting to look at in the face of resource depletion and scarcity. His assumption is that populations and individuals near the subsistence level focus greatly on the accrual of basic needs, such as food, water, shelter, and maintain a desire for the greatest amount of security to ensure survival. Once the risk associated with change does not, realistically, cause an immediate change in survival needs, then the willingness to take on risk increases greatly. Dependency on a market economy or production-based, cash economy, particularly one with limited stability due to outside factors (government instability, newness of market, resource instability, proportion of population close to borderline for their basic needs, etc). If one is to assume subsistence and local economy are based primarily, if not significantly affected by, natural resource availability and allocation, then what are the benefits/risks associated with both the subsistence model and the market model? In other words, how can the desire for security seen throughout societies be tapped into to create models of resource use and allocation that are not only sustainable, but which emphasize both the local desire for stability in the face of scarcity, contribute to overall wellbeing, and potentially alleviate some of the risks associated with impending market creation and demands? Karl Polanyi, 1957. The Great Transformation: the political and economic origins of our time. Boston: Beacon Press. УSocieties and economic systemsФ (Chapter 4), pp. 43-55.аа(Ro) James C. Scott, 1976. УThe economics and sociology of the subsistence ethicФ (Chapter 1) and УSubsistence security in peasant choice and valuesФ (Chapter 2).ааIn The Moral Economy of the Peasant: Rebellion and Subsistence in Southeast Asia. New Haven: Yale University. Ian Scoones, 1998. 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