Economy in an Arapesh society
By saying that "the economic process...is embedded in noneconomic institutions," Karl Polanyi means that even though there is no such term as “economy“ in noneconomic institutions, it still has economic activities, but only much harder to identify. That only the concepts of economy and not the term “economy” (which was coined only 200 years ago by a group of French thinkers) itself are being used in these institutions. The goal in these institutions is not to get wealthier, but to achieve other things, like stronger relations and kinship. The economic activities are embedded in the society but not for profitable economic reasons or a measure of wealth, like they are in the modern society. For example, how economic elements are set in use in different social relationships of a non-economic character like it is in the Arapesh society. In a disembedded economy, also known as market economy, the exchange has a different procedure and value. You do not trade potatoes for tomatoes because both sides of the trade are in need of what the other part offers, rather, you use money as a medium of exchange. So, money has a big value in a disembedded economy compared to in an embedded economy. Because of this, the goal changes from building relations and kinship to get more money to be able to buy what you want. Instead of trading goods for goods, money is being traded for a desired product. One of the results of a disembedded economy is specialization, meaning that different people end up producing different things and trade for money and then use the money to buy what they want. This is compared to a disembedded economy, where people produce what they need and trade their products if they want something they do not have. Because of the different ways of exchange in an embedded and a disembedded economy, people exchanging products in an embedded economy are most likely to have some kind of a relationship, while in a disembedded economy you do...
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