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Kula and Potlatch are two different economic systems Trobriand Islanders and Indigenous people of the Pacific Northwest Coast of North America respectively fall under the reciprocity and redistribution economic transactions.
Kula is a ceremonial exchange of necklace and hand bands. People travel thousands of miles through a dangerous voyage to exchange these gifts. It makes people develop long relationships. Such a partnership involves strong mutual obligations such as hospitality, protection and assistance. Kula souvenirs cannot remain with one individual for a long period. They must be passed to another in order to expand the partnership and brotherhoods among the Kula family.
Kula Ring serves three functions in Trobriand society (Papua New Guinea). First, it serves to establish friendly relations among the inhabitants of different islands and maintain a pattern of peaceful contact and communication over great distances with trading partners who might or might not speak the same language. It provides the occasion for the inter-island exchange of utilitarian items. These utilitarian items are shipped back and forth in the course of Kula expeditions. Finally, they reinforce status, since the hereditary chiefs own the most important shell valuables and it is their responsibility for directing ocean voyages.
Potlatch is a gift-giving tradition followed by people of the Pacific Northwest Coast of North America. Potlatch involves giving away or destroying any wealth and valuable things for a leader in order to demonstrate his wealth. Potlatches are also focused on the reaffirmation of family, clan, and international connections, and the human connection with the supernatural world.
Potlatches also set their own faith and rules of property, territorial restraints etc and enforce them, within their circles. It primarily functions to redistribute wealth, confer status and rank upon individuals, kin groups and clans, and to establish claims to names, powers and rights to hunting and fishing territories. On a ceremonial dugout canoe, made from a single cedar log, dancers wearing regalia announce a potlatch.
These economic systems also contributed to the concept of gift giving as well.
On certain occasions like birthdays, anniversaries, dinner parties, the end of the year it's customary. Underlying that custom is an important purpose is appreciation. We give people gifts to show them that we are grateful for them and value the role they play in our lives. More than just a gift it is an extension of your personality. As you give time, energy, thought and love you are showing your personality and your generosity as a human being. Buying and giving presents is an opportunity to show who you really are. Presents transcend money, age and need. Gifts have always been an important part in developing healthy, loving relationships. Apart from being just a simple gesture of appreciation towards your partners, giving the right gifts can show just how much you care for, and understand them. A meaningful gift is one that the recipient will cherish, not just in the moment that they get it, but for the rest of their lives. Ideally, it's a permanent reminder of your love and gratitude for their presence in your life. Gifts with meaning are more than things.
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