Spheres of exchange

Spheres of exchange is a heuristic tool for analyzing trading restrictions within societies that are communally governed and where resources are communally available.^[1] Goods and services of specific types are relegated to distinct value categories, and moral sanctions are invoked to prevent exchange between spheres. It is a classic topic in economic anthropology.^[1]

Paul Bohannan developed the concept in relation to the Tiv of Nigeria, who he argued had three spheres of exchange. He argued that only certain kinds of goods could be exchanged in each sphere; each sphere had its own different form of money.^[2] The term is also used in reference to gift economies. Similarly, Clifford Geertz's model of "dual economy" in Indonesia^[3] and James C. Scott's model of "moral economy"^[4] hypothesized different exchange spheres emerging in societies newly integrated into the market; both hypothesized a continuing culturally ordered "traditional" exchange sphere resistant to the market. Geertz used the sphere to explain peasant complacency in the face of exploitation, and Scott to explain peasant rebellion. This idea was taken up lastly by Jonathan Parry and Maurice Bloch, who argued in "Money and the Morality of Exchange" (1989), that the "transactional order" through which long-term social reproduction of the family takes place has to be preserved as separate from short-term market relations.^[5]

The introduction of money into communal societies where these sphere-of-exchange restrictions exist can disrupt resource allocation, by creating a pathway for exchange that is not accounted for in the existing restrictions.^[6] However, in some societies money has been more or less successfully integrated into spheres of exchange.^[7]