Economics vs. Diplomacy

Backing up a bit to our arrival in the Marquesas, a little story on my dilemma of having to choose between the merits of economics verses the merits of diplomacy when the two are not on a par.

Prior to arriving, we knew that barter was very common in the South Pacific islands. Unlike Central and South America, where bargaining is a given and tipping is often expected, the South Pacific islanders prefer to barter, and, when they are in a cash transaction, do not negotiate their price. To suggest a lower price is considered an insult, as is offering a tip, which offends their sense of honor. The concept of exchanging goods, however, is deeply imbedded in their culture.

It even explains human sacrifice. “Mana” (the overarching spirit or “the force” for you Star Wars fans) was a gift from the gods, but would only be given in exchange. The people would offer sacrifices at their altars in exchange for the gift of mana. Sometimes these sacrifices would be animals---valuable because they were food. But when the gift had to be the most valuable, they would offer a human, because there was nothing more valuable than a human life. (This does not explain the convenience of sacrificing one’s enemies and then eating him, but I’m a novice here.)

Also, being islands, everything except the local food has to be imported. If you’ve ever gone to Hawaii, you know that explains why everything is more expensive there. In addition to making consumer goods more expensive, they also are more scarce, depending on when the ships arrive to these remote islands.

So in Panama we stocked up on hand tools and fishing hooks for the men, perfume and makeup for the ladies, and pencils, markers and notebooks for the kids, and of course, some sweets. We pulled these items out from the bilges as we left Hiva Oa and headed to Fatu Hiva, an island without a bank or an ATM. It’s a place where money is not that important, but foreign things are.

Our first morning in the Bay of Virgins in Fatu Hiva, I noticed a small fishing boat visiting other sailboats in the harbor. Jon was ashore, so I got the barter box out, ready to see what was being offered. Ours was the last boat they came to, and I introduced myself in my barely passable French to two men who only had a bunch of bananas and two pamplemoose (similar to grapefruits but larger and green when ripe) left. Happy to have the fruit, I asked them what they would like to have in exchange and suggested some of the items I had. They wanted wine. Turns out all the adults wanted wine, because it’s so expensive, it’s hard to get, and they wanted it for their “Have” (pronounced hav-aye) celebrations which last for about the month of July.

Unprepared, I ran down to the bilges where I have a few bottles left over from our house and pulled out the cheapest bottle I had. It was worth about $20. I didn’t want to get off to a bad start with the locals by offering to barter and then backing down, so I made the exchange. I’d just bartered a bunch of bananas and two grapefruits for a $20 bottle of wine, instead of the usual bottle of inexpensive perfume ($2) or a few candy bars. Not very economically-rational, as Jon let me know upon his return.

Oh well, at least I didn’t offend these Fatu Hivans at first blush. I hope. Maybe I wasn’t even being diplomatic, just a sap. Who knows? Jon and I eventually got the hang of bartering and left the island with a good variety of fruit (limes, papaya, mango, breadfruit, oranges and pampamoos), a frozen chicken, a tapa (art inked onto a paper made from tree bark), and a stone tiki.

Later, I traded a pencil for a smile with this little boy. I don’t know if every exchange was always economically efficient, but I do know both parties always departed happy and to me, good relations are more important than economic efficiency. We’re still trading.