Potlatch economy: reciprocity among northwest coast Indians

Among the Pacific Northwest Coast Indians of North America before and during the extended era of European contact, a pervasive institution known as the potlatch governed human relations through reciprocity rather than the hierarchical state. Potlatching involved recurring intertribal feasting, gift giving, ceremonial dance, storytelling, oratory, dispute resolution, declarations of claim or right, and some measure of property destruction. The tribes referred to this network of publicly declared favors given and owed and promises made and received as their customary “potlatch law.” Like law in the Western world, it was the foundation on which their economies rested. The potlatch memorialized obligations, enforced property rights, insured against risk, promoted knowledge accumulation, supplied investment capital, and served as a system of fractional reserve banking. Beyond that, it was the foundation of the tribes’ unique culture. The potlatch provides fascinating insight into the nuance and power of reciprocity in ordering human relations.