By Clifford Geertz
In a heavily saw research of 2 Indonesian cities, Clifford Geertz analyzes the method of monetary switch by way of humans and behaviour styles instead of source of revenue and creation. one of many infrequent empirical experiences of the earliest levels of the transition to fashionable fiscal development, "Peddlers and Princes" bargains very important proof and generalizations for the economist, the sociologist, and the South East Asia expert.
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Additional resources for Peddlers and Princes: Social Development and Economic Change in Two Indonesian Towns
The bazaar economy is traditional in the sense that its functioning is regulated by fixed customs of trade hallowed by centuries of continuous use, but not in the sense that it represents a system in which economic behavior is not very well differentiated from other sorts of social behavior. What the bazaar economy lacks is not elbow room but organization, not freedom but form. The Firm Type Economy: Toko and Perusahaan The exact nature of the task of innovation facing Modjokuto's would-be entrepreneurial class is conditioned, therefore, by two main determinants: the general character of the pasar as an eco- Economic Development in Modjokuto • 48 nomic institution, and the emerging form of post-Revolutionary urban society.
For example, if he receives Rp. 30 worth of cloth, he will pay back Rp. 15, leaving a Rp. 15 debt. He then may take Rp. 30 more cloth, paying half in cash, thus raising his total debt to Rp. 30 again. How much of this debt he will pay off after selling the cloth this time depends upon how the relationship is developing, but between Rp. 5 and Rp. 10 would be usual, thus reducing his debt to Rp. 20 or Rp. 25. In this way, the debt tends to revolve around Rp. 30, the first advance, being either a few rupiah less or a few more at all times.
As the peasant takes pride in his farming abilities and the civil servant in his executive talents, so the trader takes pride in his trading skills. Yet though both the peasant's plodding industriousness and the civil servant's subtle adeptness have had a secure pleace in the traditional Javanese value hierarchy, the trader's hardheaded shrewdness has had a much less secure one and the tendency on the part of the average man to despise the technics of commerce has always been very strong. In this sense, the Javanese too have tended to see the trader as standing "outside" the ethical order, even though the processes of trade are hedged around with very definite and explicit concepts of right and wrong, and the sanctions for enforcing these concepts are far from undeveloped or ineffectual.