Poverty and Public Celebrations in Rural India

This paper examines the paradox of very poor households spending large sums of money on celebrations. The paper:

• Uses qualitative and quantitative data from South India;
• Demonstrates that spending on weddings and festivals can be explained by integrating:
  • An anthropological understanding of how identity is shaped in Indian society,
  • An economic analysis of decision-making under conditions of extreme poverty and risk.
• Argues that public celebrations have two functions:
  • They provide a space for maintaining social reputations and webs of obligation,
  • They serve as arenas for status-making competitions.
• Argues that:
  • The first role is central to maintaining the networks essential for social relationships and coping with poverty,
  • The second is a correlate of mobility that may become more prevalent as incomes rise.

The author concludes that:

• Development policies that favor individual over collective action:
  • Reduce incentives for the networking function,
  • Increase incentives for the status-enhancing functions,
  • Decrease social cohesion,
  • Enhance conspicuous consumption.
• In contrast, microfinance programs and social funds try to retain and even build a community's capacity for collective action.