Final answer:
The key difference between substantivists and formalists in economic anthropology is that substantivists focus on the cultural and social contexts of economic behavior, while formalists apply universal economic principles and focus on market-driven activities.
Step-by-step explanation:
Differences Between Substantivists and Formalists in Economic Anthropology
The debate between substantivists and formalists within economic anthropology centers on how to understand economic behavior across different cultures. Substantivists contend that the economy cannot be separated from its social and cultural context. They argue that economic activities are embedded within social institutions and cultural practices, and therefore, vary greatly across cultures. In contrast, formalists believe in universal economic principles that apply across cultures. They employ a market-centered approach, suggesting that individuals are rational actors who engage in self-interested behaviors within market environments. Substantivists use a more human-centered approach, incorporating the concept of cultural relativism and often applying fieldwork to understand the diversity of economic practices. Formalists, on the other hand, often use statistical analysis to study market-driven activities and prefer universal theories that can apply to any societal context. By understanding these two perspectives, economic anthropologists can better grasp the cultural and historical features that shape economic practices across different societies.