Extravagance

The consumption-orientation of our society (Pakistan) whose individuals mindlessly indulge in conspicuous consumption is another limiting factor [for saving mobilization]“ (SHAHID 1983:54f).

Status - ascribed or acquired - and extravagance are inseparable components of rural life.

Ascribed status usually comes from membership in a higher caste group, inheritance of a large amount of land or other property etc. Acquired status, however, may only be achieved through hard efforts.²⁷⁹ The "vicious circle of extravagance" starts with a desire to fulfill cognitive motives²⁸⁰ when lavish consumption becomes the habit of a community.

SMITH’s (1982:437)²⁸¹ remark, „capitals are increased by parsimony and diminished by prodigality and misconduct“ is of major interest in this section.

Rural Pakistan experienced a visible shift towards extravagance with the increase in remittances of Pakistani workers during the second half of the 1970s and the first half of the 1980s.²⁸² The resultant increase in purchase power, as discussed in the preceding chapters, led to a change in consumption needs and claimed a better quality of life and new standards of status in the rural sphere (FIEGE 1995:44). Such ostentatious expenditure on ceremonies and rituals is sometimes also considered as a token of generosity, although the idea is exactly opposite to SMITH’s (1961:29ff) economy,²⁸³ who sees spendthrift members as enemies and thrifty members as well-wishers of the fellow members of society. Spendthrift families usually build a small guest room and offer free food and drinks to someone who needs to stay there.²⁸⁴ Sepis also receive an extra share of agricultural produce.

279 See Section 2.2.2.1.

280 See Section 2.1.3.

281 See Section 2.1.1 for the theoretical discussion on the topic.

282 See Section 4.1.4.

283 See Section 2.1.2.1.1.

284 A very important aspect of hospitality is that it creates an obligatory relationship between host and guest, which may further be converted into a strong alliance, or new alliances may also come into being.

Such behavior gradually creates a circle of obliged people around a person and imparts him social as well as political power. Those who strive for some political position have to prepare the grounds a long time before at the local level. Once the desired socio-political status is achieved, extravagance in this form is needed to stabilize the position.

DUESENBERRY (1949) in his ‘Relative Income Hypothesis’ describes the same situation about the position of a household in the income pyramid, and developed a ‘ratchet effect’

out of it.²⁸⁵ In this way, the vicious circle starts from extravagance and ends with extravagance. During this struggle, one may hardly expand one’s own productive base. In most of the cases, resources may decrease in this period. Whatever was spent, was, in a way, an investment in social prestige (social capital) and that which was received in return from the community was also non-material mental and emotional satisfaction. Household expenditure increases day by day, but resources stay constant during this process. If income remains in balance with consumption in this case, the household economy runs without generating any surplus, but a stage may come when the expenditure level crosses the circumference of resource level and may cause dissaving. Nevertheless, the mercantilistic view²⁸⁶ stresses luxurious behavior, so that the consumption- oriented instinct may mobilize ‘dead resources’ or past savings. The hedonistic principle²⁸⁷ views that a desire to improve the standard of living at this stage may result in saving. But unfortunately, such theoretical principles are not valid in the case of Pakistan’s rural community.

Diagram 21: The cycle of socio-economic expenditure of a household

Source: author’s own survey

Lavish hospitality adds to the status of a household, even when it brings heavy financial trouble ( LÖFFLER (1992:68).

285 See Section 2.1.4.1 for a detailed discussion.

286 See Section 2.1.4.1

Diagram 21 shows the utilization of income in material and immaterial processes and the acquisition of material (in cash or in kind) and immaterial (prestige, knowledge, power) surplus. Both types of surpluses are again invested in social and economic processes which add to the household income. Although the contribution of social investments are more psychological than material, social investment tends to be unlimited in character, it is competitive in nature and its rate of increase does not remain in balance with the economic benefits achieved through it.

Parents as well as the young generation are quite enthusiastic in setting an example of lavish expenditure on marriage ceremonies.

„Many families spend for weddings more money than their financial situation allows. Sometimes young families work for years before they can pay the debts incurred for their wedding. It occurs that families sell their cattle to finance great wedding ceremonies“ (ECKER 1978:245).

A sense of competition exists in this regard. Every household tries to introduce a new event which has never been organized so far, e.g., overnight stay of marriage procession, invitation to folk singers, service from any luxury hotel, offering an extraordinarily lavish dowry, unusually large amount of gold, etc. The young generation themselves, instead of realizing the extra burden on the household's economy, compels their parents to spend more than expected by others. „By performing the various ceremonies, parents give their child pleasure and simultaneously build up the child’s Izzat in the house and in the village of the parent-in-law.²⁸⁸ Therefore, in order to conduct these ceremonies in a manner appropriate to their status - which is measured in terms of the family’s position in its own biraderi - parents will borrow money“ (EGLAR 1960:91f).²⁸⁹

Childbirth or Aqeeqa is celebrated on the seventh day following the birth. Though celebrated only in the case of a male child, it is often not less expensive than a marriage ceremony. Guests visiting from some other village stay with the host family, even a few days after the celebration. The frequency of births in a household means that every household celebrates Aqeeqa quite often. Two or more lambs are slaughtered and cooked food is offered to all biraderi members, neighbors and family friends as a feast. The circumcision ceremony is also celebrated like Aqeeqa. A large number of guests are invited to the feast. The guests stay a few days and enjoy the host’s hospitality.

Generosity, as already stated, may be seen as a major cause of trouble for the household economy. Most of the middle class landowner families try to be socially active. However, the cost, in this regard is quite high.

288 Respondents mentioned a few cases where the boy’s family gave a certain sum of money to the girl’s family for the dowry and the wedding reception, as the other family was not able to meet all those expenditure alone. This may affect the Izzat of both parties. But this is the least desired form of marriage and both families do not mention this money in public. EGLAR’s results (1960:91f) in rural Pakistan also gives clues of such arrangements.

289 Parents who are not able to manage these expenditures are regarded as negligent and incapable in the performance of their duties, and this reflects badly on their Izzat. See also (EGLAR 1960:91ff) for further details on the issue.

Anwar and his two brothers own a joint orchard of 16 acres and had inherited enough to offer an easy life to their families. Since they were members of most generous families in the past, they want to follow the tradition and, therefore, their households lack even the basic requirements to cope with the hardships caused by the weather. No assets have been added since the death of their father and most of the activities have had to be financed by loan.

Sepis are the major agents of reputation. Landlords’ households try to give to Sepis more than committed, just to create a good impression. Everyone can come and ask for help. They always have to entertain many guests at every meal time, etc. SCOTT (1976:41-42 cf. HAYAMI AND KIKUCHI 1981:18) observes a similar situation in a traditional community, „ well-to-do villagers avoid malicious gossip only at the price of exaggerated generosity. They are expected to sponsor more conspicuously lavish celebrations at weddings, to show greater charity to kin and neighbors, to sponsor local religious activity, and to take on more dependents and employees than the average household. The generosity enjoined on the rich is not without its compensations. It redounds to their growing prestige and serves to surround them with a grateful clientele which helps validate their position in the community. In addition, it represents a set of social debts which can be converted into goods and services if need be.“

Intra-biraderi competition for status is another major motivation of extravagance during biraderi ceremonies where everyone tries to take a lead. The ‘veyl’ system (the ritual is now performed by showering currency notes on all dancing people as a sign of joy) is one of the best ways of demonstrating prosperity. Traditionally, this money is given by men to the mirasis, (the village bards) who entertain male guests.²⁹⁰ The currency notes may vary from 1 to 500 Rs. Everyone provokes the others to compete until their pockets are empty.

Family tussles intensify such events. Some relations like those of husbands of two sisters are quite touchy ones, as they always want to let each other down at every ceremony.

Such tussles usually break the backbone of the low-income families. At that time, they usually forget the miseries their immediate families have to face afterwards.

Extravagance leads to dissavings in the rural households, which may be discussed in terms of consumption credits in cash and kind ( Table 33). Dissaving occurs when the level of consumption is higher than one's income. Since repayment is quite uncertain, borrowing from relatives is preferred. This borrowing and repayment cycle keeps on revolving continuously. MANIG (1991:117-118) in his survey report on six villages in north Pakistan mentions, „95% of all of the credit transactions are procured from informal credit sources. The by far most important source for obtaining credit are relatives and friends (50%), and other private acquaintances (27%). These are followed by small loans from the store proprietors who write up the purchases for daily needs on credit.

Commission Agents are involved in only 2% of all of the credit transactions. Formal sources of credit only make up 5% of the sources of credit in the villages, of which commercial banks make up 3%“. FIEGE’s (1995:258) comparative study in north-west Pakistan²⁹¹ also proves the success of informal credit sources over formal ones, even after a period of twenty years, „In the absence of trustworthy formal credit institutions,²⁹² the

290 For a detailed description of the activity, see also EGLAR (1960:197ff).

291 The analysis period of 1967/68 to 1986/87.

292 The Agricultural Development Bank of Pakistan (ADBP), for instance, although it always stressed a special consideration of small farmers in its priority list of borrowers, is not supported by its published facts