Sunday, October 28, 2018

Week 10.2 - Low Finance

What are the socio-cultural aspects of the rotating credit association (dhukuti) in Nepal? How is dhukuti an "economy of need and pleasure"?

7 comments:

  1. Out of the of the many socio-cultural aspects discussed around the dhukuti, the most interesting one to me was that of the conversation about the different ways the dhukuti is played and how it reflects the person's background or caste. Within dhukuti, there have traditionally been three different ways to play, the lottery system, the rotation system, and the releasing and eating system. Most interestingly, the lottery and the rotation styles of play most clearly depict the socio-economic difference between the untouchables and those in the upper and lower middle parts of the caste system. The rotation system allows for zero loss and zero gain for each of the participant. This is important to women within the untouchable caste who work for their money so that they may confidently invest it or use it in a way they know will be help them. Their dhukutis aren't parties or social gatherings, but merely a way for them to circulate money within their own community. Contrarily, for the women of the lower and upper middle parts of the caste, their lottery based Dhukuti's symbolize their lack of need or appreciation for the money they're entering into the lottery. For most of these women, this money was simply acquired from their husbands or family members. With little to lose, this allows for this portion of the caste to turn their dhukuti's in to a more social scene as winning or losing the lottery will have little effect on their livelihood.
    Some of my comments on the socio-cultural aspects of dhukuti brush on how it also acts as an economy of need and pleasure. With Nepal experiencing a regime change in the 1950's a gradual intersection of need and pleasure based economies began to intersect. Dhumiti's/ROSCA's allowed marginalized populations to bypass bureaucratic and risky banks in order to obtain large amounts of cash in a way that was easily accessible and beneficial to them. Meanwhile, an influx of consumer goods and services in Nepal in the 1970's created the infrastructure for an economy of pleasure for the upper castes despite these goods and services being available for all Nepalis. As I briefly mentioned, lottery and release and eat dhukuti systems are expand further than need and into the boundaries of social pleasure that include opportunities to demonstrate economic prowess. It makes me wonder what a system of dhukuti's could provide for certain people in the United States. Would it be possible for lower class communities to successfully run and manage these events? Would it even be economically or legally feasible within our nation?

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  3. One of the socio-cultural aspects of the dhukuti that struck me the most is the idea that dhukuti can provide one with both a source of money, as well as a source of relationships. This is seen in one of the scenes, where a person running a dhukuti states that they are all brothers of occupation, that is they are all of the same class. In the book, there is also a part that mentions that those who play dhukuti tend to know eachother. From this, it seems that the game builds on and may even increase the trust between the players, as well as the trusts that they may have in their relationships outside of the game. In another part, it is mentioned that dhukuti also tends to be played by, in a way, bored people who do not even think about how much money they may end up loosing and winning. It is then seen here that while some people who play dhukuti might actually need the winnings, that most simply play the game to interact with outer people of their caste. It is also mentioned that people who play dhukuti generality have enough to live on, by their own work, that the winnings of the dhukuti players goes to "what the heart desires".

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  4. There are many socio-cultural aspects associated with the dhukuti. The one that interested me the most was how the dhukuti is associated with relationships and a sense of social mobility. In the first scenario the leader of the dhukuti started it in her free time, while her husband was at work and children at school, and has met many people and made friends while organizing these meetings. The dhukuti has created a place where the women can get together and tell stories and laugh. In the second scenario the men in participating in the dhukuti are all from the same caste and have the same occupation. They even refer to each other as brothers, not by blood but by occupation. They are even referred to as a new type of class, B-grade Khadgis, because they remain in the low butcher class with no plans on changing but are requiring more money because of the increase of demand and the dhukuti. They are referred to as to having money but no money. The third scenario is held between higher class business men. This more concretes relationships between business men and other people participating are left out from the social aspect. The fourth and final scenario is the dhukuti held between the untouchable class known as the Dyahlas. This dhukuti has a strong sense of trust between the women participating. It differs from the other dhukuti because there is no meeting place for payments or drawings, everything is done more in passing. The Dyahlas also have a love for their money because they know the sacrifices needed to earn it. They view the other dhukuti as odd compared to their own. The dhukuti is an “economy of need and pleasure” because most of the time the people participating only make enough to live from and are not eligible for leisurely or home loans. The dhukuti help provide not only needs, like homes, but also gifts and leisurely products, like motorbikes and earrings. Without the help of the dhukuti some of these things would remain completely unobtainable.

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  5. The socio-cultural aspects of the dhukuti are ones based in community and kinship. People meet to play dhukuti and tend to not only meet to play, but to chat with others as well. Bajracharya describes a scenario where this type of meeting takes place where Rabina, a housewife, organizes the dhukuti and has been able to make new friends where before she would spend most of her time alone in her house waiting for her husband and kids to get back. Another scenario showed that there is a strong sense of community among women in the lower part of the caste system. They played dhukuti by a "rotation" rule set where whoever is next in line gets the winnings. It is explained that they do this not to provide enough money for one to live off of, but in order to help one another afford what they desire. There is a lot of trust that goes into the process and it is easy to do because each of them work hard for their money and they understand one another. This also helps why dhukuti is an economy of need and pleasure. Between these women, the goal is to help one another with expenses and potential needs along with wants. Those in lower classes play to help get what they need. In higher classes, people play with little regard for their money as it is not seen as a "need." Instead, they play for the thrill of playing. In another scenario, this kind of playing was described as "watching a movie" for those in the higher class. In short, dhukuti can be played because of the need for money or for the pleasure of passing time.

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  6. There are several socio-cultural aspects that are prevalent in the rotating dhukuti. Most interesting to me are the social ties formed between each of the participants, resulting in a heightened sense of kinship, and a viable source of extra spending money. From the reading, Bajracharya gives the example of the rotating dhukuti taking place between women from the lowest social caste living in the far periphery of the city. Many of these women were recorded saying that they trusted each and every participant to fulfill their 2000 rupee payment into the dhukuti each month. This trust comes from the fact that each woman knows that everyone involved isn't "going anywhere", resulting in the planning and organizing of the dhukuti "easy". A few women were also reported to have said to "love" their money. All of these women have to work hard day and night to meet their most basic needs (such as housing and food) and have learned how to manage their finances properly in order to participant in the dhukuti. The money they put into rotation, then becomes a source of additional income for them to put toward large purchases later down the road. One woman said she was able to take the money she got from her turn in the rotation and use it to finish building her house, while another woman said she was planning on spending her earnings on a motorbike for her son. Unlike the other methods of planning and organizing a dhukuti, the rotating dhukuti is less of a game to be won and more of an economy of needs and pleasures amongst those in the community. It is a way to ensure that everyone involved is able to meet their most basic of needs, as well as a way for them to slowly lift themselves collectively out of poverty and into a newly found wealth to be used however they see fit.

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  7. Dhukuti can be defined as a Rotating Saving & Credit Association (RoSCA) in which equivalent sums of money are collected from the members in systematic intervals and assigned to one member for a period. Its rotation is frequently determined by undisclosed payouts, the fund going to the lowest bidder. Dhukuti has become a key informal financial organization for small innovative economics in Nepal, particularly for certain members within the society. In many instances, it is the only source of credit/financing for said members. Dhukuti also provides a place for social networking among women. When women meet on a consistent basis, they can talk about work and family. Such socialization is not simply for pleasure; it also delivers a form of insurance. In the informal economy of Nepal, most individuals cannot afford medical or employment security. The government does not offer unemployment security, and there is no all-inclusive social security structure in place. In such a setting the public depend on on their neighbors, relatives, and friends for assistance during hard periods. Dhukuti thus affords two methods of security; a lump sum disbursement that is offered when needed, and an environment for communication that reinforces the critical social bonds among them.

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