The political economy of food production : an example from an Aymara-speaking region of Peru

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The political economy of food production : an example from an Aymara-speaking region of Peru
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Painter, Michael David, 1954-
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Food industry and trade -- Peru   ( lcsh )
Anthropology thesis Ph. D   ( lcsh )
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Thesis:
Thesis (Ph. D.)--University of Florida, 1981.
Bibliography:
Includes bibliographical references (leaves 285-292).
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Also available online.
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Typescript.
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Vita.
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by Michael David Painter.

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Full Text











THE POLITICAL ECONOMY OF FOOD PRODUCTION:
AN EXAMPLE FROM AN AYMARA-SPEAKING REGION OF PERU









By

MICHAEL DAVID PAINTER














A DISSERTATION PRESENTED TO THE GRADUATE COUNCIL OF
THE UNIVERSITY OF FLORIDA
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF DOCTOR OF PHILOSOPHY





UNIVERSITY OF FLORIDA

1981


































Copyright 1981

by

Michael David Painter























To my mother and the memory of my father













ACKNOWLEDGMENTS


A number of people and institutions contributed to the realization

of this study. The people of the district of Sarata shared freely of

their food, shelter, and knowledge of their home, and gave new meaning

to the concept of reciprocity. Special assistance was rendered by

Santiago Calli Apaza, Eustaquia Callo de L6pez, Lucia L6pez de Lima,

Javier Mamani Mamani, Gregoria Sarabia Blanco, Pedro Quispe Ticona,

Juan Ticona Collquehanca, Lucio Ticona Collquehuanca, and Abdon Ticona

Mamani.

I was also fortunate to have the opportunity to work with four

talented and dedicated research assistants from the district of Sarata.

The late John Wilfredo Apaza, formerly a student of agronomy at the

Universidad Nacional T6cnica del Altiplano, in Puno, provided techni-

cal information on agriculture both to me and to the people of Sarata.

His untimely death was one of the few sad experiences I had to suffer

while in the field. Yolanda L6pez Callo, currently Aymara Instructor

at the University of Florida, and Eva Mercado Vargas, a school teacher

in Sarata, transcribed and translated hours of recorded tapes contain-

ing extremely difficult linguistic material and oriented me to numerous

aspects of life in Sarata. Juan Lira Condori, a student of sociology

at the Universidad Nacional de San Agustfn, in Arequipa, conducted

marketing and consumption surveys, and shared information he had col-

lected on the effects of the Peruvian agrarian reform in Sarata.


iv








Institutional affiliation in Peru was provided by the Pontiffcia

Universidad Cato6ica del Peru, in Lima, and by the Universidad Nacional

Thcnica del Altiplano, in Puno. Carlos Aramburu and Alejandro Camino,

anthropology professors at the Universidad Cat6lica, shared their

extensive knowledge of Puno department and directed me to numerous use-

ful bibliographic sources. Victor Bustinza, Oscar Chaquilla, and

Eleodoro Chahuares, faculty members of the Universidad del Altiplano,

made university resources available and assisted me in gaining access

to government offices and agencies in Puno. Rodolfo Machicao, also a

faculty member at the Universidad del Altiplano and a native of Sarata,

allowed my wife and me to reside in his family's house while we were in

Sarata, provided extensive information on the district, and introduced

me to a number of helpful saratenos.

Ismael Cerruto and Jacinto Condori of the Ministerio de Agricul-

tura y Alimentaci6n provided extensive information on productive activi-

ties in Sarata. Eleodoro Aquise Jaen, director of the Puno office of

the Servicio Nacional de Meteorologfa e Hidrologfa, made available

climatic data on the region. Victor Villanueva, director of the

Organismo Regional de Planificaci6n in Puno, also collaborated with

my research efforts.

Valuable assistance and support while I was in the field was also

provided by Phil Blair, Lucy Briggs, Hector Martfnez, Benjamin Orlove,

and Peter White. The Sisters of Satin Joseph who administer the parish

of Sarata were uniformly kind, helpful, and supportive of my efforts.

The members of my doctoral committee have been unfailing in their

encouragement and support since I first arrived at the University of



v








Florida. Anthony Oliver-Smith has been an extremely capable and dedi-

cated advisor, as well as a constant source of new ideas. M.J.

Hardman-de-Bautista introduced me to the Aymara language and people,

and trained me in the linguistic field methods upon which I have relied

heavily. Charles Wagley has been an extremely loyal mentor whose

knowledge of anthropology in general and Latin America in particular is

exceeded only by his personal warmth and good humor. Chris Andrew has

advised me on matters related to agricultural economics and shared his

vast knowledge of issues in rural development. Paul Doughty has been a

friend and is a perpetual source of information on Peru and Peruvian

research.

No research would have been possible without financial support.

This was partially provided by a Fulbright-Hays Fellowship for Doc-

toral Research. The Inter-American Foundation was my major source of

funding through a Learning Fellowship for Social Change. Both members

of the staff and of the fellow selection committee of the Inter-

American Foundation have been a source of personal and intellectual

support.

Finally, my wife, Jane Collins, has been steadfast in her support

and guidance of my work at the same time that she was also engaged in

doctoral research and dissertation writing. She made the effort required

to pursue an advanced degree in anthropology not only possible, but a

pleasurable and rewarding experience.









vi










TABLE OF CONTENTS

Page

ACKNOWLEDGEMENTS. . . . . . .... . . . . iv

ABSTRACT. ....... . . . . . . . . ....... ix

CHAPTER

I THE "PEASANT" WAY OF LIFE. . . . . . ... 1

Introduction . . . . . . . . . . . 1
The Study of Peasant Economics .......... . 7
The Analysis of Modes of Production. . .. .. . 13
Modes of Production in the District of Sarata. ...... .. 18
Research Methods . . ... . . . . 21

II THE SARATA ENVIRONMENT . . . . .. .. . . . 23

Introduction . . . .... . . . . . 23
Physical Features . . . . . . . . . 24
Population and Institutions. . . .... . . 30
The Rural Communities of the District. . . . . ... 33
Social Stratification. . . . ... . . . .. 35
Economic Class . . . . . . . . . . 49
Subsistence Strategies and Capitalist Expansion. .... .58

III THE INTEGRATION OF SARATA INTO REGION AND NATION .... .61

Introduction . . . ... . . . . . 61
The Integration of Sarata. . . . . ... . . 62
Sarata and the Republic. ... .. ...... . . . 70
The Arrival of a Capitalist Economy. . . . .... 74
The Urban Growth of Juliaca. . . . ... . . 84
The District of Sarata and Urban Centers . . . .. 93
National Agrarian Policy and the Stagnation of the Agri-
cultural Economy . . .. . . . ..... . 95
National Agricultural Policy and the Regional Economy
of Sarata. . . . . . . . . . . . 112

IV THE PROCESSES OF PRODUCTION . .. . . . . .. 117

Introduction . . . . .... . . . . . . 117
Landholding Institutions . . . .. .. . . .. 117
Communities and Individuals . . . . .... 117
Labor Exchange. . . . ... . . . . 125
S.A.I.S. San Juan . . . . . . . . 130
Medianos Productores. . . . ...... . . 137



vii







Page

Subsistence Activities in Sarata . . . . . . 137
Subsistence and Non-Capitalist Production . . . 137
Potatoes and Minor Tubers . . . . . . .. 142
Broad Beans . . . . . . . . . . 150
Barley . . . . . . . . . . . 153
Forage Grains . . . . . . . . 155
quinoa and Kaniwa . . . . . . . 156
Vegetable Crops . . . . . . . . . 157
Corn . . . . . . . . . . . . 159
Herding . . . . . . . . . . . 160
The Role of Subsistence Activities. . .. .. .165
The Capitalist Mode of Production.. . . . . 167
Capitalist and Non-Capitalist Production. . . ... 167
Wage Labor. . . . . . . . .... .. 169
Trade and Transport . . . . . . . . 174
Capitalists . . . . . . . .... .. 178
The Organization of Labor. . . . . . . . . 188

V HOUSEHOLD DIVERSIFICATION IN A PEASANT ECONOMY . . .. 190

Introduction . . . . . . . .... . . 190
A Sarata Household . . . . . . . .... . 191
Daily Activities . . . . . . . . . . 203
Labor Allocation . . . . . . . . . . 206
Household Agriculture . . . . . . . . . 214
Potatoes and Minor Tubers . . . . . . 214
Broad Beans and Peas . . . . . . ... 226
Barley and Wheat . . . . . . . . 233
Quinoa . . . . . . . . . . . 235
Forage Grains . . . . . . . . . . 236
Onions . . . . . . . . . . . 237
Livestock . . . . . . . . . . 239
Costs and Revenues of Subsistence Agriculture. .... .. 240
Coffee and Citrus Cultivation . . . . . ... 245
Trade and Commerce . . . . . . . . . 251
Household Expenses . . . . . . . .. .. 256

VI PEOPLE AND MODES OF PRODUCTION . . . . . .... 260

Summary and Conclusions . . . . . . . .. 260
Policy Implications . . . .... ... ... .. 275
The District of Sarata in a Broader Perspective. . .. 278

APPENDIX

THE AYMARA PHONEMIC ALPHABET . . . . . ... 284

REFERENCES . . . . . . . . . . . . . 285

BIOGRAPHICAL SKETCH . . . . . . . . . .. 293




viii








Abstract of Dissertation Presented to the Graduate Council
of the University of Florida in Partial Fulfillment of the Requirements
for the Degree of Doctor of Philosophy


THE POLITICAL ECONOMY OF FOOD PRODUCTION:
AN EXAMPLE FROM AN AYMARA-SPEAKING REGION OF PERU

By

Michael David Painter

December 1981

Chairman: Anthony R. Oliver-Smith
Major Department: Anthropology

The Aymara of southern Peru have experienced the process of

capitalist expansion for a number of years. Aymara households partici-

pate in diverse capitalist activities while withholding their agricul-

tural production from the market. Food production is for subsistence

only. Households earn cash by participating in capitalist activities

which are scheduled so as not to conflict with subsistence activities.

This strategy protects the Aymara from becoming dependent upon any single

activity to provide the means of their subsistence.

Losing control over basic subsistence activities has historically

been associated with rural-urban migration in the region, and is one

reason that regional urban centers have experienced tremendous popula-

tion growth in recent years. There has been a corresponding growth in

the demand for food by these urban centers at the same time that rural

producers have become reluctant to sell food.

Economic diversification facilitates capitalist activities in

southern Peru because non-capitalist subsistence activities provide

part of the subsistence needs of the people who participate in capi-

talist activities. This reduces the cost of labor and reduces the amount


ix








of cash the population must control in order to provide a solvent de-

mand for manufactured goods. However, for the conditions which origi-

nally facilitated the growth of capitalist enterprises in the region

to continue, subsistence activities must also continue. This tends to

limit further capitalist expansion into the region.

The dependence of the capitalist mode of production upon non-

capitalist modes in order to expand, and the withdrawal of foodstuffs

from the marketplace at a time when urban demand is rapidly increasing

are two contradictory tendencies associated with the process of

modernization in southern Peru as well as in other areas of the world.

They are major features of modern peasant economies. They illustrate

that such an economy is not simply the product of market forces seek-

ing equilibrium, but are the result of broad social forces acting

within a particular historical process.



























x












CHAPTER I

THE "PEASANT" WAY OF LIFE



Introduction


The chill quiet of the town plaza of Saratal is broken shortly

after 1:00 a.m. by the drivers of nearly two dozen trucks and two buses,

who start their vehicles and begin idling their engines to warm them up

for the trip to Juliaca. Several of the trucks jockey for position at

the plaza exit, trying to guarantee .that they will be among the first

to leave, and thus have a full load of passengers. Within a few minutes

the sound of the revving of engines is joined by the cries of the

drivers' assistants, shouting their destination and trying to attract

passengers to their vehicles. A pall of exhaust fumes soon settles

over the plaza and softens the outlines of the people as they pass in

front of the headlights of the trucks. The men wear ponchos, cover

their heads with knitted stocking caps, and wrap their faces with

knitted scarves. The women are dressed in polleras, the large full

skirts worn over numerous petticoats, several layers of sweaters, and

blouses over which they wrap a shawl, and a derby hat. Many people

carry bundles on their backs which may contain everything from children



Sarata is a fictitious name for the district in which research for the
present work was conducted. The names of places within the district
as well as those of district residents have also been changed. Other
names, however, are cited correctly.



-1-




-2-


to food and blankets for the trip, to goods destined to be sold in

Juliaca.

The destination of nearly everyone this Monday morning is Juliaca,

which is a major distributive center for all of southern Peru. Its

weekly market is held every Monday and is the largest in the region

and a focal point of weekly commercial activity. A similar scene is

repeated virtually every morning in the Sarata plaza, as people attend

the various local markets or go to the provincial capital of Huancang,

or Juliaca on bureaucratic errands. The activity in the plaza on the

other mornings, however, is much reduced in comparison to Monday.

As she does every Monday morning, Petronia Quispe arrives in the

plaza around 1:30, in time to secure a good seat on the truck directly

behind the cab, for herself and four-month-old child she carries on

her back. She is also carrying a bundle, which contains a change of

clothes for the baby, a blanket to wrap themselves in during the pre-

dawn truck ride, and an inkuRa,2 or food-carrying cloth, containing

some boiled potatoes to eat on the way.

Petronia also has brought several nylon windbreakers and a trans-

istor radio in her bundle. These were purchased in a weekly market on

the Bolivian border last Saturday and Petronia will re-sell them in

Juliaca this morning. This is, of course, strictly illegal, and con-

stitutes a miniscule part of the well-publicized black market trade

between Peru and Bolivia. Between Sarata and Juliaca, the truck

Petronia is riding on will pass through four control points where it

may be searched thoroughly either by customs agents or members of the


2All Aymara words in this thesis are written according to the Yapita
phonemic alphabet, which is described in the Appendix.




-3-


Guardia Civil, the national police force. Usually, however, the

searches are only cursory and rarely create difficulties. The biggest

worry lies in the delays that the checkpoints sometimes provoke.

The truck in which Petronia Quispe is riding is owned by a person

who engages in contraband activity on a far larger scale. In fact,

either he, his wife, or a family member own over half the trucks leaving

Sarata this morning. Although originally from the same peasant com-

munity as Petronia, he has amassed a fortune that reputedly makes him

one of the richest men in southern Peru. He maintains a base in the

community by contributing generously to work projects and employing

people from there in his many enterprises. Petronia always travels in

one of his trucks because it is said that they are less likely to have

problems at the control points. Also, his sister is Petronia's god-

mother, or madrina, having sponsored Petronia at her baptism. Petronia

can thus count on the support of powerful friends should she ever en-

counter problems in Juliaca, or anywhere else in the department of Puno

for that matter.

Most of the trucks from Sarata will arrive in Juliaca between 5:00

and 6:00 a.m. The very last to leave will reach Juliaca by 6:30 a.m.

Upon arrival in Juliaca, the first thing Petronia will do is sell the

radio and the windbreakers to retail commercialists who work in the

city. That transaction completed, she will buy a large sack of onions

or carrots. After buying her produce, Petronia will store it in the

back of the truck, under the watchful eyes of the driver's assistant and

several fellow passegners while she does some shopping. Generally she

buys some fruit to take home to her family. Also, she will buy a large

sack of bread, which is of a better quality than that baked in Sarata.




-4-


By 10:00 a.m., Petronia and the other passengers will be back on the

truck and leaving Juliaca. Barring mechanical problems and depending

upon the condition of the road, they will be back in Sarata between

2:00 and 4:00 p.m.

On Wednesday, Petronia will take the produce she purchased in

Juliaca to a rural market in a high-altitude herding area of the dis-

trict of Sarata. Some of the vegetables will be sold there; however,

Petronia will be more interested in trading them with the women who

bring cheeses and wool to the market. These products are produced in

abundance in the herding area and are sold at a lower price than any-

where else in the district of Sarata. Petronia will add the wool to

her personal store and some will be used for the weaving and knitting

that she and her husband do, and the rest will be available for con-

version into cash on some later occasion.

The cheeses Petronia acquires on Wednesday will be taken to a

Saturday market near the Bolivian border. From shortly before sunrise

until about noon merchants such as Petronia conduct a lively trade with

their counterparts from Bolivia. Here, Petronia will sell her cheeses

to Bolivians who, because food prices are considerably higher in Bolivia

than in Peru, will pay a much higher price than she could receive in

Peru. From Bolivians who have come up from the valley of Chuma, she

will buy wayk'a, a variety of dried hot pepper, which she will sell in

the large Sunday market in the town of Sarata. She will also buy another

radio and perhaps some other manufactured goods from mechants that have

come to the border from La Paz. These will be taken to Juliaca next

Monday morning to underwrite the start of another business week.




-5-


When not attending to market business, Petronia works with her

husband, Santiago Huanca, in carrying out the household agricultural

activities. These include caring for their three cows, seven sheep,

and four pigs, and cultivating a small area of land which is divided

into many plots scattered over a wide area. Most of these plots are

located within their own community, although some of their landholdings

are also located in other areas of the district.

Although they work as a team on these activities, Petronia and

Santiago own their animals and land individually. The household has

four pigs, for example, which were purchased by Petronia with money

from her marketing, and they are her property. Santiago spends as much

time taking care of them as she does, but both the decision to buy and

how to dispose of the pigs are Petronia's. Likewise, Santiago in-

herited some irrigated land in another area of the district from his

mother, who is from a different community. He and Petronia work the

land together, but it belongs undisputably to Santiago. Productive

decisions are made with the interests of the entire household in mind,

but the principle of separate and individual ownership is basic.

Petronia and Santiago live about four kilometers outside of the

town of Sarata in a community near the edge of Lake Titicaca. It is

one of the most densely populated areas of the district and few house-

holds in the community own more land or animals than Petronia and

Santiago. There is virtually no irrigation in the community; however,

the combination of high population density and high agricultural pro-

ductivity is made possible by the annual flood plain of irregular width

which forms the shoreline of Lake Titicaca. Petronia and Santiago's

community, as well as several other communities in the district of




-6-


Sarata, controls substantial areas of this plain. Cultivation of this

flood plain is called milli and is made possible by the water that seeps

into the ground from the lake. This makes possible an early planting

and, as the increasing rains cause the level of the lake to rise, neces-

sitates an early harvest. Petronia and Santiago also plant and harvest

early in the agricultural season on a small plot of irrigated land, and,

in fact, realize three harvests a year from that plot. They also follow

a third agricultural schedule on the land where rainfall is the only

source of water.

On their lands, Santiago and Petronia cultivate potatoes and other

tubers, broad beans, quinoa, barley, corn, carrots, onions, cabbage, and

other vegetables, as well as a small amount of oats for the animals.

The yields they receive are considerably higher than the mean for the

department of Puno, and despite the small area of land they own, they

are normally able to provide quite comfortably for most of the household

food needs. The only foodstuffs regularly purchased are rice, noodles,

and sugar, which they cannot produce for themselves. Santiago and

Petronia would like to have a little more pasture land, which would

permit them to purchase some additional livestock. However, they are

not particularly interested in acquiring additional agricultural lands

for, as they point out, they already have all they can eat and providing

the labor necessary to cultivate more land would limit their freedom

to engage in other activities.

Like the people in most of the households of Sarata, Petronia and

Santiago rarely sell food they have produced themselves. For them,

agriculture has a single purpose, to produce food for the household.

The primary concern of the households is to assure themselves of a food




-7-


supply. Once that goal is achieved they can, and do, turn their atten-

tion to making money. However, one does not risk one's subsistence on

the chance to turn a monetary profit.



The Study of Peasant Economies


The present study will examine the economic system in which Petronia

and Santiago participate. This system is characterized by the co-

existence of productive activities belonging to capitalist and non-

capitalist modes of production, and individuals such as Petronia and

Santiago incorporate activities from both modes of production into their

survival strategies. It is the relationship between capitalist and

non-capitalist modes of production that is most characteristic of the

peasant economy of Sarata.

Use of the concept of modes of production has recently received

considerable attention in the literature of economic anthropology and

many investigators have found it useful in illuminating the issues

which lie behind the economic problems faced by many developing socie-

ties (Clammer 1978; Seddon 1978). However, the study of peasant socie-

ties has been characterized by a number of approaches, which have enjoyed

varying degrees of popularity at different times. The modes of produc-

tion approach is simply a recent chapter in a long history of theoretical

frameworks. Therefore, it may be helpful to briefly review some of the

problems peasant studies have faced in order to make explicit why the

mode of production model has been chosen.

Within the context of American anthropology, peasant studies have

traditionally fit into a broader context of the study of non-Western




-8-


economic systems in which individuals frequently manifest apparently

anomalous economic behavior. There has been a prolonged theoretical

dialogue on the utility of basic concepts of Western economics for

studying such non-Western and/or non-capitalist economic systems. One

group of writers, exemplified by Dalton (1968), Polanyi et al. (1957),

and Sahlins (1972) have claimed intellectual antecedents in the work of

Chayanov (1966) and they have argued that formal Western economic con-

cepts are not useful for analyzing non-Western societies. In their

view, within non-Western societies, economic activities are not a

separate realm, but are carried out in the context of kinship, politi-

cal and religious institutions, while Western economic science developed

as part and parcel of a specialized market economy. They have maintained

that Western economic science equates rationality with the allocation

of resources to maximize the production of desired goods, while most

non-Western societies do not seek to maximize production; and Western

economics assumes scarce means in relation to unlimited wants to be

universal, while it is, in fact, a peculiarity of the Western system.

Other writers, such as Burling (1968), Cook (1968), Herskovits

(1940), and Schneider (1974) have defended the applicability of Western

economic science to non-Western societies. They have argued that the

detractors of formal Western economic concepts confused economic analy-

sis with economic liberalism when they equated it with the growth of

the market economy and that the concept of maximization, in fact, refers

to satisfaction, which is culturally defined, and not to production.

Such writers have also held that there is indeed scarcity as long as

the means for engaging in productive activity are not unlimited and may

be employed in alternative uses, and as long as the obtaining of a goal

requires the expenditure of measurable effort.




-9-


Considerable effort has been expended in this discussion with

neither side able to delineate an objectively definable field of study.

On one hand, it is argued that economics has to do with the provision-

ing of society, but that the institutions which fill this role belong

to the domains of kinship, religion, or politics rather than economics.

On the other hand, economics may study the decision-making by which

scarce means are allocated among alternative uses. However, if means

and ends are defined broadly enough to be universally applicable, then

all human activity becomes the field of study (Godelier 1967; 1977).

Within this general context, the study of peasant societies has an

additional element of complexity which is not shared by the tribal or

primitive non-Western societies which have provided many of the examples

fueling the above discussion. As a group, peasants are not defined by

the internal structures of their own societies, but by their relation-

ships to larger, external societies. Hence, Redfield (1953:31) links

the rise of peasant societies to the rise of cities, and Kroeber

(1948:284) states that peasants are "part-societies with part-cultures"

which constitute a class segment of a larger population, and which live

in relation to market towns. The relationships that peasants have with

the larger populations are highly variable according to the technological,

environmental, and social situations of the peasants themselves, and

the type of domain exercised over them by the dominant urban-based

classes of the society (Wolf 1955; 1966).

In spite of great variability, peasants do share the experience of

being dominated by other strata in the larger populations to which they

belong. These strata exercise a prior claim over the production of

peasants. Sometimes this is over "surplus" production, and sometimes




-10-


it is over peasant labor power. They also share a number of institu-

tions which regulate the internal organization of peasant societies,

the social relations organizing their productive activities, and mini-

mize the damage that external domination can do them. These institutions

have traditionally functioned by preventing or limiting potentially dis-

ruptive external contacts by placing formal and informal sanctions upon

those who would make such contacts outside of specific, approved con-

texts. Protection institutions have also served to place limits on

both upward and downward individual mobility. Downward mobility has

been limited by spreading the costs and risks of an enterprise among

all the members of a community, while inter-personal obligations and

institutions of mutual aid and cooperative labor have served to limit

upward mobility by equalizing access to resources (Migdal 1974). Such

mechanisms frequently have functioned at the level of communities which

have been closed as much as possible to external forces (Wagley 1964).

In some cases, such communities have resembled a closed corporation

whose members hold enduring rights and duties (Wolf 1951; 1966), while

in others the closure of peasant society has occurred at the level of

large regional trading networks (Tax 1953).

During the present century, and particularly since World War II,

peasants have experienced a new force--that of capitalist expansion.

The expansion of capitalism into peasant areas has been motivated by

various factors according to the particular time and place. These have

included a need for raw materials, land, cheap labor power, and new

consumer markets. Where these factors have come together, the social

relations of production and the productive activities themselves that

existed prior to capitalist expansion into the region have generally




-11-


been drastically altered or eliminated (Bradby 1975). The mechanisms

by which traditional institutions have been transformed are numerous.

However, all have involved some combination of factors which increased

the expenses of peasant household and limited their opportunities for

earning an income. In some areas, for example, capitalist expansion

has stimulated rapid population growth, which has led to an unprecedented

fragmentation of landholdings and a reduction in a household's ability

to produce a marketable food surplus. In .other areas, manufactured

goods replaced local craft production and cut off what had been a source

of income for many households (Migdal 1974).

As capitalist expansion progressed, it was argued that the disrup-

tions caused to traditional productive activities were not unlike what

had occurred in the United States and Europe in the early days of capital-

ist growth and expansion in those countries. Some observers argued

that the changing peasant societies would eventually become capitalist

themselves and be in a position to share the fruits of capitalism en-

joyed by the populations of developed capitalist societies (Rostow

1961).

When such a course of events showed no signs of occurring, many

investigators began to search for what was "wrong" with peasant socie-

ties, which impeded the expected transformation. They sought the answer

to their questions in the cognitive grid of peasants, where they claimed

to have found "cultural factors" such as low empathy, a limited world

view, a lack of innovativeness, hostility, and fatalism which are shared

by peasants around the world and which cause them to resist and subvert

the transformation to capitalism (Bailey 1966; Banfield 1958; Foster

1967; Rogers 1969). Such was the anxiety to "blame the victims" for




-12-


the lack of success in transforming their societies to industrial

capitalist centers that explanations based upon normative judgements

by investigators regarding traits of personality and perception were

acceptable. Such traits were reported to apply to peasants in general

regardless of their particular cultural or historical backgrounds. The

experience of capitalist expansion into their areas, which is shared by

peasants around the world, and which may be directly observed in the

material condition of their lives, was ignored.

The counterpoint to the "cognitive grid" approach is the work of

Frank (1966; 1967; 1969). Frank argues that the explanation for the

problems associated with capitalist expansion, such as rapid population

growth, urban expansion, and poverty, are found entirely within the

capitalist economy. For him, non-capitalist production that peasants

may engage in either prior to or concurrent with capitalist expansion

is irrelevant. Capitalism is a world system hierarchically ordered into

metropoli and satellites. The satellites produce a surplus which is

extracted by the metropoli. Because the system is hierarchically ar-

ranged, what is a metropolis from one perspective, is a satellite from

another. Lima, for example, is the principal metropolis of Peru, but

in its position in relation to developed capitalist societies it is a

satellite. As a general principle, Frank's dependency model is intui-

tively appealing. However, the concepts of metropolis and satellite

frequently elude precise definition when applied to particular cases.

Also, by focusing exclusively upon his perception of the overriding

internal dynamic of capitalism, Frank's model reveals little about the

functioning of productive processes at a local level, or about the

links between the local level and the larger society.




-13-


Other writers have been more precise in their analyses. Amin (1974;

1977) argues that societies into which capitalism is penetrating cannot

follow a course of development similar to Western Europe and the United

States because the penetration occurs from the outside for the purpose

of extracting wealth. The key sectors of the economy which are trans-

formed as a result are those of export production and import consumption.

These grow in relation to one another, but the productive activities

in other areas of the society are not transformed.



The Analysis of Modes of Production


Marx himself suggests a different perspective on the growth of

capitalism in his discussion of the Asiatic mode of production (1959).

He emphasizes that in the Asiatic mode of production, certain precapi-

talist modes are more resistant to capitalist penetration than others

for reasons related to the internal organization of production. Recent

investigators have found this to be a starting point for a renewed

interest in studying the internal functioning of non-capitalist econ-

omies in different areas of the world. These studies differ, however,

from those which stimulated the discussions among economic anthropologists

regarding the usefulness of Western economic science for studying econ-

omic behavior in non-Western societies in that they focus upon produc-

tion rather than upon transaction and exchange and the institutions

which regulate them. In this perspective, distribution and exchange

are determined by the social relations among the people engaged in the

productive process. These social relations are, in turn, determined

by the initial access of producers to the goods, resources, and labor




-14-


which constitute the means of production (Godelier 1967; 1977; 1978a;

1978b; Meillassoux 1972; 1977).

The term "mode of production" is used here to refer to economic

activities that may be diverse in terms of the products that result

from them, but which share basic organizational characteristics that

order the social relations among the people involved in the economic

activity. The social relations that are observed between participants

in an economic activity are determined by their relative access to land,

labor, and capital, that is, the means necessary for production to

occur. In feudal Europe, for example, the organizing principle for

social relations was the rights and duties which defined the control of

different segments of the population over land. In modern capitalist

activities, the social relations between participants are ordered by

their access to capital. The most basic distinction is between workers

who sell their labor power for wages because they do not have access

to the other means of production, and capitalists who control land and

capital.

In any society, there are diverse economic activities which may

belong to different modes of production. The different modes of produc-

tion are not isolated from one another, but are linked in various ways.

A plowshare produced in a factory organized according to capitalist

social relations of production may be used in a family agricultural

enterprise which produces only for subsistence, for example. The two

modes of production are joined through the sphere of exchange, which

provides the mechanism for getting the plowshare from the foundry to

the farm. Likewise, a single individual may act both as a worker in

the foundry and as a food producer for the family. The two modes of




-15-


production are then linked in the coordination of their respective labor

requirements.

When two modes of production are linked in such a fashion, they

constitute a single economic system, which is often referred to as a

social formation. Because they are linked, conditions in one mode of

production may affect conditions in the other over time. Historically,

when one of the modes of production has been capitalist, it has tended

to expand, and capitalist social relations of production have replaced

social relations of the non-capitalist mode.

The relationship between capitalist and non-capitalist modes of

production is referred to as their articulation. Rey (1973:82-87)

states that the articulation of modes or production is a process in time,

which extends from when capitalist expansion first brings it into con-

tact with a non-capitalist mode of production in the sphere of exchange

and ends with the total disappearance of the non-capitalist mode of

production as all relations of production become capitalist.

By looking at the articulation of capitalist and non-capitalist

modes of production as a temporal process one is really looking at two

historical processes, that of the capitalist system itself and that of

the non-capitalist modes in the area where capitalist penetration is

occurring. This allows local productive processes to be examined in

relation to the larger region and nation, and can illuminate the ques-

tion of why capitalist expansion has not worked the transformation upon

non-capitalist areas that was once expected.

Briefly, the capitalist mode of production is attracted to an area

by the presence of non-capitalist modes of production and, once there,

it tends to depend upon their continued existence. This is because the




-16-


non-capitalist mode of production helps to pay the subsistence costs of

people being incorporated into the capitalist mode of production. For

example, a commercial agricultural enterprise which has only a seasonal

demand for labor does not have to pay its workers a wage which reflects

their yearly subsistence costs and those of their families if all or

part of the worker's subsistence requirements are met through subsistence

agriculture and other non-capitalist productive activities. It is the

non-capitalist mode of production which makes possible the "cheap labor"

which is a major attraction of such an enterprise. In reality, the

labor is not cheap, but its subsistence costs are subsidized by the

non-capitalist mode of production. This reduces the costs of production

for the capitalist enterprise and constitutes a transfer of value from

the non-capitalist mode of production to the capitalist mode of produc-

tion. Likewise, the presence of a non-capitalist mode of production

allows people with limited access to cash to consume more manufactured

goods than would otherwise be possible. Insofar as basic subsistence

needs are met by non-capitalist activities, limited cash resources may

be more freely spent for consumer goods than would otherwise be the

case.

Because the non-capitalist mode of production reduces the costs

involved in capitalist expansion by such means as subsidizing labor

costs or reducing the amount of cash income required for a population

to constitute a solvent demand for manufactured goods, it is in the

interests of the capitalist mode of production to co-exist with and

reinforce the non-capitalist mode of production. This, however, poses

a problem. The capitalist mode of production tends to expand and re-

place non-capitalist modes even though the non-capitalist modes provide





-17-


the conditions attractive to capital in the first place--conditions

upon which a particular enterprise may depend in order to realize a

profit on its production. The kinds of enterprises which are attracted

to enter such a relationship with a non-capitalist mode of production

are those which require labor only on a seasonal basis and which re-

quire unskilled labor that can be easily replaced when a worker leaves

to take care of subsistence tasks (Dupr6 and Rey 1978; Meillassoux

1972; 1977; Rey 1973).

The relationship between the two modes of production is presumed

to be hierarchical; that is, one is dominant over the other. In many

studies of modes of production, the concept of dominance is used impre-

cisely, referring simply to the mode of production that is most charac-

teristic of a social formation. In the United States, for example, one

can observe subsistence agriculture and craft industries in which the

social relations of production are not capitalist, although they are

invariably in some stage of articulation with the capitalist economy.

Few people would argue that the social formation resulting from this

articulation is not capitalist. However, in a society only recently

undergoing capitalist penetration, this is not necessarily true. When

one discusses a mode of production as being dominant or dependent, the

parameters which determined the classification must be specified.

Montoya (1980:25) discusses this problem as one of scale. He notes

that in Peru as a whole, the capitalist mode of production is dominant,

but in its articulation with developed nations on an international

level, Peruvian capitalism occupies a dependent position. At the same

time, in the countryside, there are many areas of small-scale agricul-

ture where non-capitalist relations of production dominate.




-18-


Various authors have used the concept of modes of production in

their analyses of particular societies, emphasizing different implica-

tions of the theory. Meillassoux (1964), for example, focused upon the

internal economic organization of the Gouro of the Ivory Coast of

Africa, which is characterized by a non-capitalist mode of production

based upon lineages in which the older men control access to the means

of production. Montoya (1980) examined the history of articulation

between capitalist and non-capitalist modes of production for a major

economic network in Peru which includes the populations of Lima, Lomas,

Puquio, and Andahuyalas. Long and Richardson (1978) discuss the in-

formal sector of the economic system of the Mantaro Valley in Peru,

which is characterized by non-capitalist relations of production. They

note that the expansion of small capitalist enterprises in this region

usually implies a diversification rather than a specialization of

economic functions.



Modes of Production in the District of Sar:ta


The present work will apply the concept of modes of production to

the economic system of the district of Sarata, an Aymara-speaking dis-

trict of the department of Puno, Peru. Since prior to the arrival of

the Spanish in Peru, Sarata has been subjected to domination by external

political and economic interests. Capitalist penetration into Sarata

began near the end of the 19th century when the Southern Peruvian Rail-

way made the altiplano region an accessible market for manufactured

consumer goods.

Since that time the economic structure of the region has changed

several times along with changes in transportation networks, in the




-19-


relative importance of various urban centers, and in the driving forces

behind continued capitalist expansion. As these changes have occurred,

the peasants of Sarata have found their need for cash increasing. In

order to satisfy this need, modifications in traditional non-capitalist

subsistence strategies were made which placed them within the capitalist

mode of production. Long distance trading networks which had been

similar to those described by Tax (1953) in that the transactions had

been limited to members of the Native American social stratum, provided

the context for a shift to the transport of manufactured goods between

urban centers in Peru and Bolivia. Seasonal trading expeditions to

the valleys of the Peruvian coast became seasonal migrations in search

of wage labor opportunities, and the cultivation of tropical valleys

by saratenos in Bolivia preceded present-day production of cash crops

in Peru's Tambopata Valley.

The increased participation of saratenos in capitalist activities

has been marked by diversification rather than specialization, much as

was the case in the Mantaro Valley as observed by Long and Richardson

(1978). A single household in Sarata may well be involved in two or

more of the alternative activities belonging to the capitalist mode of

production. Care is taken, however, not to allow participation in the

capitalist mode to interfere with the production of basic foodstuffs for

household subsistence. History has taught saratenos that while parti-

cipation in the capitalist mode of production can be profitable, it is

also risky. People who became dependent upon capitalist activities to

supply basic subsistence needs also became vulnerable to the fluctuations

of the market economy which has forced many off of their lands and into

urban centers. Diversification of economic activities and maintenance




-20-


of control over basic subsistence needs are important means of reducing

such insecurities.

Within the district of Sarata, the time and intensity of partici-

pation in capitalist activities are determined by the demands made by

subsistence agriculture upon household labor resources. Participation

in capitalist activities occurs only after all possible steps have been

taken toward assuring the household of an adequate food supply. Although

the capitalist mode of production is dominant in Peru as a whole, the

non-capitalist mode of production remains dominant within Sarata. This

is so because the people of the district are unwilling to intensify their

participation in the capitalist economy at the cost of losing control

over the means of production of their own subsistence. As long as they

do this, it is possible to choose the nature of their participation in

the capitalist economy. They do not have to sell their labor in order

to eat. In his discussion of the stages of articulation between capi-

talist and non-capitalist modes of production, Rey (1973) notes that

agriculture is frequently the last economic activity in a society to

come under the domination of the capitalist mode of production. The

case of Sarata illustrates why this is so.

In Sarata, the non-capitalist mode of production has subsidized

capitalist activities in a variety of ways and continues to do so. In

turn, the capitalist mode of production reinforces the subsistence

sector of the Sarata economy. This reinforcement is related to the

development of capitalist activities which are compatible with the labor

requirements of subsistence agriculture. However, it is this selective

development of the capitalist economy that is responsible for much of

the instability which has produced massive migration to urban centers,




-21-


and which provides the incentive for saratenos to maintain control over

the means of their food production.

By examining the articulation between capitalist and non-capitalist

modes of production in Sarata, this work will attempt to examine the

effects of capitalist penetration on the economic system of the district.

It will also argue that, while sarateios have enjoyed more alternatives

in the economic activities available to them than have most peasant

societies, their response reflects a strategy that is not unique, and

which is instructive in understanding why Peru has not been transformed

into a developed capitalist society. This is not, however, merely a

theoretical exercise. In the case of Peru, the nature of the articula-

tion of modes of production is responsible for a critical shortage of

food in Peru's urban centers. In examining the process of capitalist

expansion into the district of Sarata, attention will be paid to both

the causes and possible solutions of this problem.



Research Methods


The research upon which the present work is based was carried out

from June through August of 1977 and from December 1979 through Decem-

ber 1980. Several data-gathering techniques were employed. The tradi-

tional anthropological approach of participant observation was used

extensively in order to determine the scheduling of capitalist and

non-capitalist productive activities and their respective requirements

in terms of labor and other resources. This included observing and

participating in most agricultural activities on the altiplano,

accompanying merchants as they went about their various endeavors, and




-22-


accompanying sarateio producers when they went to the Tambopata Valley

to harvest coffee and citrus.

Participant observation was supplemented with more structured re-

search techniques. Between December 1979 and December 1980, all of the

rural markets of Sarata were visited. All but one were visited on

various occasions. The number, age, and sex of vendors and buyers were

noted, inventories were made of the goods being bought and sold, and

the incidence of cash and barter transactions was noted.

Information on the history of Sarata and its relationship to the

larger regional and national societies was gathered through library re-

search. The archives of the Catholic church in Sarata also yielded much

information of historical value.

The Ministry of Agriculture provided information on population,

household size, the amount of land under cultivation and its allocation

among different crops, and on the size and composition of livestock

herds for each community in the district. Based upon this information,

key households were selected which represented major features in the

productive patterns of the district. Structured, open-ended interviews

were conducted with members of these households and some of these

individuals, in turn, provided additional information in unstructured

interviews.

Research with Aymara speakers was conducted in the Aymara language.

This eliminated the need for interpreters and reduced the number of

opportunities for the distortions that inevitably occur when information

is translated from Aymara into languages as structurally different from

it as Spanish or English.












CHAPTER II

THE SARATA ENVIRONMENT



Introduction


Capitalist expansion as it occurs around the world is affected by

a number of factors. Aspects of the physical environment determine or

constrain the productive activities which can be performed. Social

strata represent divisions in society based upon unequal access to

wealth generated by productive activities, and to political power. The

political structure into which a region is integrated facilitates govern-

ment control and the implementation of policies favorable to those

social strata whose interests the government serves. Local political

units, such as the peasant community, frequently serve to organize pro-

ductive activities within a region.

In the district of Sarata, the nature of capitalist penetration

into the local economy has been affected in various ways by particular

aspects of the physical environment, political organizations, and

social stratification of the region. The harshness of the altiplano

severely limits the possible range of productive activities. Since

prior to the arrival of the Spanish, Sarata has been dominated by ex-

ternal political organizations established for the purpose of extracting

wealth. The social stratification of the district reflects this pur-

pose. Local elites have consistently represented the interests of the




-23-




-24-


groups concerned with extracting wealth from Sarata, whether the wealth

was in the form of labor, minerals, or food.

Traditional elites were unable to control access to the productive

activities associated with capitalist expansion. These activities pro-

vided economic opportunities to social strata which had not formerly

enjoyed them. As members of these strata have acquired economic power

the traditional elites have lost it. Social divisions characteristic

of capitalist societies have begun to emerge. At the present time,

capitalist and non-capitalist modes of production co-exist in the dis-

trict of Sarata. The process of capitalist penetration has altered the

previously existing social relations of production. However, the nature

of capitalist penetration itself was also shaped by these prior pro-

ductive relationships, and it continues to reflect the productive

arrangements worked out over hundreds of years in the altiplano environ-

ment.



Physical Features


The district of Sarata is located on the northeastern shore of

Lake Titicaca in the Peruvian altiplano. It is a district of the prov-

ince of Huancane, department of Puno. The westernmost side of Sarata

is bounded by Lake Titicaca, which runs on an axis from northwest to

southeast, while its eastern boundary is the international border with

Bolivia. On the north and northwest, Sarata is bounded by other dis-

tricts of the province of Huancan6.

Within this area, the district of Sarata occupies approximately

700 square kilometers. About 50 kilometers separate the most distant




-25-


points on its longest axis, parallel to Lake Titicaca, and its width

averages about 15-20 kilometers. The town of Sarata, which is the

administrative center of the district, is located some kilometers south-

west of the geographic center, about four kilometers from the shores of

the lake (see Figures 2-1 and 2-2).

Two highways of packed earth and stone connect the town of Sarata

with the Bolivian border some 35 kilometers to the east. One route

follows the lakeshore, and was constructed in the mid-1960s, under the

first administration of Fernando Belaunde Terry. The journey to the

border by this route usually requires from two to four hours to com-

plete. The ether highway to the border passes inland from the lake.

It was reportedly constructed in the late 1940s and it is the fastest

route to the border from the town, requiring from 1.5 to three hours. Both

of these highways reunite in Bolivia and form a direct link with La Paz,about

eight hours from the border. There are, of course, also numerous

trails across the border which are frequently negotiated by people on

foot leading llamas or burros. Some are also negotiable by trucks.

To the west, Sarata is linked to the provincial capital of Huancan6

and the commercial center of Juliaca by an unpaved highway. The dis-

tance to Huancane is about 50 kilometers and Juliaca is slightly over

100 kilometers distant. The trip to Juliaca normally requires from

three to six hours.

In the past Sarata was joined by boat to other districts that border

Lake Titicaca. With the completion of a permanent highway link to

Juliaca, regular passenger and freight services by boat were halted

around 1940. However, one community in the district has a major boat-

building industry where wooden craft of various sizes are constructed.





-26-
















San J wan


'1


Aya riColat

STiticaca
\\ i i



















PERU 0
II \ ,
























0 kms so .
.--. _J ,Tiic c, \Lae






















Figure 2-1. The department of Puno
--- Major roads















880O 4200


lo luliaca /


-VIA





N '- 15 Ma---o-r rod



*
F igu 2 of S r-
E- "--. ---^^" n-'-",_ .. 7"--..-.BIIVI



Rural market sites




,.,\ 3 90I l,!'. a



Figure 2-2. The district of Sarata
Numbers indicate approximate elevation above sea level
Rural market sites
--- Major roads




-28-


These craft are purchased largely by households that live along the

lake, for whom fishing is an important activity. Some people who do

not fish also purchase the larger boats upon which they mount outboard

motors. These are used for commerce and link the lakeside communities

of Sarata with other communities around Lake Titicaca.

Sarata is commonly regarded as having a more agreeable climate than

other areas of the altiplano. The presence of peach, apple, and cherry

trees which annually bear fruit, the cultivation of corn, and the

raising of diverse vegetable crops both out-of-doors and in greenhouses,

set the district apart from many other areas around Lake Titicaca, and

are pointed to as evidence of generally warmer temperatures and more

abundant rainfall. Indeed, visitors to the area who are accustomed to

other areas of the altiplano are invariably impressed by the lush green

vegetation.

With regard to temperature, however, Sarata is not appreciably

different from other areas of the altiplano. During the six-year period

from 1975-1980, for example, the mean annual temperature of 8.50C in

Sarata was slightly lower than the mean annual temperature of 8.80C

recorded for the city of Puno. Also for the period 1975-1980, a mean

variation of 11.9C between the mean diurnal high and the mean nocturnal

low was recorded for Sarata, while in the city of Puno the mean varia-

tion was 11.40C.1


1Ing. Eleodoro Aquise Jaen, Chief of the Puno office of the Servicio
Nacional de Meteorologfa e Hidrologfa (SENAMHI) graciously gave access
to meteorological data for the department of Puno. The figures cited
in this paragraph are based upon data gathered by SENAMHI, but the
means themselves were calculated by the author.




-29-


On the other hand, Sarata does receive appreciably more rainfall

than the departmental mean.2 For the same six-year period of 1975-1980,

a mean annual rainfall of 933 mm was recorded, while the departmental

mean for the same period was 758 mm. This appears to be the most sig-

nificant climatic difference between Sarata and other areas of Puno

department.

In discussing the climate of Sarata a note of caution is in order,

for there is a great deal of variability within the district. In the

vicinity of the lakeshore, in addition to potatoes, barley, and guinoa,

one also finds broad beans, isanu (Tropaeolum tuberosum), apilla (Oxalis

crenata), and ulluku (Ullucus tuberosus), as well as corn, vegetable

crops, and fruit trees. As one moves to the north away from the lake,

the basic food crops tend to be reduced to potatoes and barley along

with relatively small amounts of quinoa (Chenopodium quinoa) and kaniwa

(Chenopodium pallidicaule). Oats, rye, and forage barley are also

raised to feed the larger numbers of animals encountered as one moves

toward the ever more sparsely populated regions away from the lake.

Finally, in the extreme northeastern corner of the district, not even

the "bitter potato," luk"i (Solanum andigenum), can be cultivated and

the subsistence base rests entirely upon large herds of sheep and al-

pacas. Collins (1981) divides the district of Sarata into ecological

zones on the basis of the complex of crops that form the subsistence

base.


2Rainfall in Puno department falls most abundantly in the montaia region
of the extreme north and most sparsely in the region of the Cordillera
Occidental in the extreme south, and the decrease from north to south
is fairly regular. The SENAMHI normally uses readings from the city
of Puno to represent a departmental mean.




-30-


This variation is commonly attributed locally to higher elevation,

which is associated with increased cold stress. In a general way this

is correct, especially when one compares the vicinity of the lake with

the extreme northeastern corner of the district. At the shore of Lake

Titicaca, the elevation is about 3812 meters above sea level, while in

the northeast, the elevation approaches 4300 meters above sea level.

The upward slope of the land as one moves away from the lake is very

gradual on the whole, however, and differences in elevation do not, by

themselves, account for the differences in the crop complexes that form

the subsistence bases in various areas of the district. In fact, beans

and the tubers ulluku, isahu, and apilla are often found in lakeside

areas which, due to an irregular landscape marked by high hills and

ridges, are as far above sea level as the "highlands" some distance

away, where these crops are not cultivated. Likewise, there are irri-

gated highland areas where broad beans are successfully cultivated. It

appears that much of the climatic variation within the district is a

function of the presence or absence of sufficient moisture in the form

of water in the ground and humidity in the air to protect plants from

the desiccating effects of the cold, dry winds blowing off the eastern

cordillera of the Andes.



Population and Institutions


The 1972 Peruvian census recorded a total population for the dis-

trict of Sarata of 20,220 people, of whom 1377 lived in the town of

Sarata and the rest lived in the countryside. Based upon the agricul-

tural census for the 1978-1979 growing season carried out by the




-31-


Ministerio de Agricultura y Alimentaci6n, the rural population of the

district was 21,331. The investigator estimated the 1980 population of

the town of Sarata to be in the area of 2000-2500 people. This would

place the total population of the district at about 23,000-24,000

people.

Based on a total population of 20,220 people, the mean population

density of the district is approximately 28.9 people per square kilometer,

while a total district population of 24,000 people would signify a mean

density of approximately 34.3 per square kilometer. The population is

not spread evenly throughout the district, but is concentrated in the

lakeside area, where population densities of from 200-250 people per

square kilometer are estimated. In contrast, in the extreme northeast

of the district, where herding is the subsistence base, the population

density is in the area of 15-20 people per square kilometer.

The town of Sarata is the administrative center of the district.

It is the home of a district governor who is appointed by the sub-

prefect of the province, and is the last link in the centralized chain

of command of the national government, extending outward from Lima. An

alcalde, or mayor, is the highest official of the municipal government.

The town is divided into five barrios, or neighborhoods, each of which

elects its own officials to represent the interests of the neighborhood.

Several of the professions are also represented in the district govern-

ment by unions, or sindicatos. These include the drivers' union or

sindicato de choferes, the small businessmen's union, or sindicato de

minoristas, the artisans' union, or sindicato de artesanos, the bakers'

union, or sindicato de panificadores, and the restaurant owners' union,

or sindicato de gerentes de restaurantes.




-32-


Also located in the town is a post of the Guardia Civil or national

police force and an office of the Policia de Investigaciones del Peru,

which is the national plain-clothes investigative police. A medical

post is located on the edge of town which is affiliated with the Ministry

of Health and an office of the Ministery of Agriculture provides infor-

mation and technical assistance to the cultivators and herders of the

district. Public education is available in the town from the levels of

kindergarten through secondary school. The Catholic Church has been an

institution in the town since 1608, when the first priest arrived.

Today the church is administered by North American nuns from the order

of the Sisters of St. Joseph, who also provide services in reiigious

education and rural health care. Services are performed by the Sisters

and a sacristan, who is from a community outside the town of Sarata.

The Adventists arrived in Sarata early in the 20th century, and most

of their work has been concentrated in the rural communities; however,

they have recently constructed a large temple in the town as well. The

Adventist church is completely run by native personnel.

The town is also a center for commerce in the district. It is the

site of a large Sunday market, which attracts between 700 and 1,000

vendors weekly, and a much smaller Thursday market. On other days of

the week, stores are the main distributors of beer, soft drinks, cocoa,

and food products such as noodles, rice, and sugar. Several mechanics

are kept busy maintaining the large number of trucks that operate out

of the town.

In the town of Sarata, one also finds such services as running

water, electricity from about 6:00-10:00 p.m. when the hydroelectric

generator is working properly, and a sewer system, which was in the




-33-


process of being installed in 1980. Traditionally, the town monopolized

such amenities and services, but, more recently, people in the rural

communities have become more organized and are acquiring these benefits

for themselves as well.



The Rural Communities of the District


The town of Sarata is surrounded by 36 communities which occupy

the bulk of the rural area of the district. Some of these are offi-

cially recognized by the national government as comunidades campesinas

while others have chosen to forego official recognition and are termed

parcialidades. Most of the communities which have opted for recognized

status have done so since 1960. There are examples of communities which

chose to become recognized both during and before the Agrarian Reform

of the government of Velasco Alvarado. Both communidades campesinas

and paracialidades are represented before the national government by a

teniente gobernador, who is appointed for each community to serve a

one-year term by the sub-prefect of the province in consultation with

the district governor. Internally, the communidades campesinas are

governed by a comite de vigilancia and a comiti de administracion in

accordance with the requirements of the national government. Parciali-

dades, on the other hand, exhibited several different models of internal

organization.

Until relatively recently, the district government was organized

on the basis of ayllu rather than community. Each of the current com-

munities composed a part of an ayllu. Sometimes the lands of communi-

ties belonging to a single ayllu were contiguous and sometimes they




-34-


were not. However, all of the ayllu did control land in the different

ecological zones of the district. In one case, a very large community

constituted an ayllu in and of itself. It is unclear upon what basis

the ayllu were organized in pre-Hispanic times; however, the Spanish

organized them into landholding institutions. Each ayllu had defined

territorial boundaries by the 17th century.

Prior to the emergence of the rural communities as political

institutions, the district government was composed of the governor of

the district and a teniente gobernador who was appointed to represent

each ayllu. This began to change in the 1950s as different parts of

the ayllu began to want their own tenientes gobernadores to represent

their interests in obtaining support for the construction of schools,

roads, and other facilities. From this time, the communities of Sarata

gradually acquired their own tenientes gobernadores and the ayllu lost

much of their importance, with the transition process ending in the

early 1970s. Presently, the ayllu is the basis of only a few political

or administrative functions, although they continue to be invoked by

specialists on ritual or ceremonial occasions as fundamental institu-

tions in district organization.

Prior to the agrarian reform of the Velasco government, in the

late 1960s and early 1970s, there were 12 privately owned farms, or

fundos, in the district of Sarata. One of these was owned by a man

whose daughters all belonged to the San Vicente de Paul order of nuns.

Upon his death, the fundo passed into the hands of the order, where it

remained until the agrarian reform. The other fundos were controlled

by members of four different families. Most of the fundo owners in

Sarata also had land holdings in other, neighboring districts as well.




-35-


As part of the Agrarian Reform, these holdings were expropriated and

adjudicated to form a S.A.I.S. (Sociedad Agraria de Intergs Social),

which is dedicated to the raising of sheep for wool. The S.A.I.S. is

under the direction of a manager who is rarely seen by the families

who work on the enterprise, and day-to-day management is carried out

largely by six officers and technicians who are members (socios) of the

S.A.I.S., and 35 technical and administrative employees who are not.

The families that were formerly tenant-laborers (colonos) on the fundos

now work for S.A.I.S. The adult male "head" of each household is a

socio who in theory has an equal vote in deciding how the enterprise

will be run with all other socios. The socios are permitted to maintain

subsistence plots to feed their families and to have their own herds

in return for performing labor on the S.A.I.S. The socios are in

theory paid a nominal sum of money for work performed for the S.A.I.S.;

however, their wives and children who are not socios, are also required

to work and are not paid.3



Social Stratification


The division between the town and the countryside in Sarata is the

basic social distinction recognized by the inhabitants of the district.

Since the town of Sarata was founded toward the end of the 16th century,

it has been the residence of a social elite which represented Spanish


3This and other information on the operation of the S.A.I.S. was gen-
erously shared with the author by Mr. Juan Lira Condori of the district
of Sarata while he was conducting research on the operation of the
S.A.I.S. for his tesis de bachiller in sociology at the Universidad
Nacional de San Agustfn inArequipa.




-36-


authority during the colonial period, and the authority of the Peruvian

governments that have ruled the country since the Wars of Independence.4

Although a product of the mixture of European and indigenous populations,

and speakers of both Aymara and Spanish, they orient their values toward

the European cultural heritage. The people who live in the countryside

are commonly regarded as the representatives of Peru's modern Native

American population. A tension exists between the two groups that has

been punctuated by violence at different times in the past.

Social stratification in Sarata will be discussed here on the basis

of a formal analysis of the features upon which residents base their

distinctions of social categories. The interviewing techniques of the

field linguist were employed in the elicitation of these features.

Analysis and presentation generally follow the methodologies of Good-

enough (1965) and Lounsbury (1964). Miracle (1976) has demonstrated

the utility of formal analysis as a tool for examining Aymara social

relations.

Rural inhabitants of Sarata commonly distinguish two social cate-

gories, jaqi, or "human being," and campesino, or "peasant," which are

used almost interchangeably to refer to themselves. Misti is a pejora-

tive term that, broadly defined, means someone who lives in the town.

Numerous features in addition to living either in the country or in

the town are said to distinguish campesinos from mistis, however. The

distinguishing features which are commonly cited are listed in Table

2-1. These include features related to dress, diet, work habits,

manners, and religion, among others.


4This and other historical information mentioned in the present chapter
will be discussed more fully in Chapter III.




-37-


The items included in Table 2-1 represent characteristics upon

which there was unanimous agreement by informants of various social and

economic positions as to their relevance in distinguishing the social

categories of campesinos and mistis. The features were not necessarily

volunteered spontaneously, however. For example, people who considered

themselves campesinos would frequently say that a misti is lazy. Fur-

ther elicitation regarding what campesinos regard as being lazy led to

the complex of features pertaining to the domain of work. In addition,

although the features presented in Table 2-1 were regarded as distinc-

tive by people of distinct social strata, the social significance

attached to the features by members of the respective strata varied

tremendously. A person cited by a campesino as being a "lazy misti,"

for example, might regard him or herself as a vecino del pueblo, or a

"leading citizen of the town" and refer to people from the countryside

as indios, which may literally be translated as "Indian" and is a

strong pejorative. The features belonging to the domain of work,

which to a person from the countryside would denote a "lazy misti,"

when referring to a person to-whom they do not apply, might also be

cited by a leading citizen of the town as denoting an "ambitious

Indian," when referring to a person to whom they do apply.

There is, however, a difficulty. Although the features listed in

Table 2-1 are agreed upon as distinguishing social categories, most of

them do not, in fact, have a strong behavioral correlate that may be

observed as making one group of people different from another. For

example, although all campesinos agreed that mistis live in the town,

they also agreed that there are numerous people living in the town who

do not behave like mistis in most other respects. By the same token,




-38-


Table 2-1

Features of Social Stratification


Features Campesino Vecino Domain


Works own fields + +
Sells labor + +
Hires labora +
Exchanges labor + +
Has maid + Work
Children herd + +
Walks to borderb +
Owns land in Tambopatac + +
Makes own poncho + +

Adventist + +
Catholic Religion
Sunday mass--morning +
Sunday mass--evening +

Speaks Spanish + + Language
Speaks Aymara + +

Lives in town +
Lives in community +
Carnaval-campo dance group + + Residence
Carnaval-town dance group +
Celebrates campo fiestas + +
Celebrates town fiestasd +

Wears ojotas or goes barefoot + +
Wears shoes + + Dress
Wears Pollera skirt + +

Family members killed in 1923 + +
Family members attacked com-
munities in 1923 + Human/non-human
Greets all people he/she knows + +
Does not greet everyone +

Shares food + +

Eats hot lunch (almuerzo) + Food
Eats cold lunch T(fambres_) + +

Spanish surname + + N
Elite surname +ames




-39-


Table 2-1

continued


aRefers to mink'a, which, in Sarata, designates the sale of one's labor
for money. A campesino may pay a worker; however, it is the right of
the workers to decide whether to exchange labor for labor or labor for
money. Mistis may offer no choice.
Refers to the willingness to walk long distances without transport.
The border with Bolivia was often cited as a place campesinos walk to
trade but mistis do not.
Coffee growing region in Tambopata Valley, Sandia province, Puno depart-
ment.
Campo fiestas include Candelaria, San Juan, and Santa Rosa de Lima.
Town fiestas include Santa Cruz and Exaltaci6n de la Cruz.




-40-


while leading citizens of the town agreed that indios live in the

countryside, they hastened to point out that numerous people live in

the town who certainly are not leading citizens.

This indicates that there is a town-dwelling population which does

not fit well into the campesino vs. misti distinction made by people

from the countryside or the vecino vs. indio distinction made by social-

ly elite town families. Saratehos do indeed recognize the existence of

a third social category, but do not have a name for it. This third

group constitutes an unmarked category.

When this unmarked category is included in Table 2-2 under the

heading of "town Aymara," the features elicited as distinguishing social

categories do have behavioral correlates. The categories of campesino

and vecino are clearly distinguished from one another with regard to

nearly all of the features listed. The "town Aymara" share some features

with the campesinos and some with the vecinos, but the total complex of

features which characterizes the town Aymara clearly shows it to be

distinct from either of the other two social categories.

Table 2-2 shows that only three of the features regarded as dis-

tinguishing the social strata of the population do not yield a contrast

when tested by direct observation. These are found in the domains of

surnames, dress, and language. Spanish surnames penetrated the country-

side of Sarata soon after the conquest, when many people adopted them

as well as given names for the purpose of baptism. There is evidence

that people did not have surnames in the European sense prior to the

time of the conquest. Parish baptismal records indicate that the in-

heritance of a surname did not follow a European pattern in Sarata until

the beginning of the 18th century, although it is not clear what the




-41-


Table 2-2

Distinguishing Features of Social Stratification

Town
Features Campesino Aymara Vecino Domain

Works own fields + +
Sells labor + +
Hires labor + +
Exchanges labor + +
Has maid + Work
Children herd + +
Walks to border +
Owns land in Tambopata + +
Makes own poncho + +

Adventist + +
Catholic
Sunday mass--morning + Religion
Sunday mass-evening + +

Speaks Spanish + + +
Speaks Aymara + + + Language

Lives in town + +
Lives in community +
Carnaval-campo dance group + +
Carnaval-town dance group + + Residence
Celebrates campo fiestas + +
Celebrates town fiestas + +

Wears ojotas or goes barefoot + +
Wears shoes + + + Dress
Wears pollera skirt (women) + + +

Family members killed in 1923 + +
Family members attacked com-
munities in 1923 + Human/
Greets all people he/she knows + + non-human
Does not greet everyone +

Shares food + +

Eats hot lunch (almuerzo) + +
Eats cold lunch (_fambr + + Food

Spanish surname + + +
Elite surname + Names




-42-


pattern of surname inheritance was. The decline of the Native American

population due to disease and forced labor as well as the massive re-

settlement of the population that occurred after the conquest also

facilitated the penetration of Spanish surnames into the Sarata country-

side. In later years, many people have found it to their economic and

social advantage to adopt Spanish surnames. It seems that Spanish sur-

names are identified with the misti/vecino stratum not because this

group has them and the other strata do not, but because Spanish sur-

names are used as a metonym representing a general orientation toward

Spanish values.

Clothing is another area which people agree varies according to

social category; however, at the present time, objectively defineable

clothing differences corresponding to social strata are minimal. In

fact, the only obvious difference is that someone belonging to the

vecino stratum will never wear ojotas, rubber tire sandals, or go bare-

footed. People from all social strata wear shoes at least part of the

time. Women from all social strata wear the full-cut pollera skirts and

derby hats. In the past, however, the campesino population was subject

to dress proscriptions which prohibited them from wearing shoes and

limited clothing items to those made from homespun wool. Campesino men

wore knee-length pants and a tunic-style shirt, while women wore polleras

and blouses, all made of bayeta, or homespun wool. Vecino men wore the

Western style of the period, while the women wore polleras and blouses

which were of finer fabrics than homespun wool.

Today, campesino men rarely wear short pants, although they fre-

quently wear homespun clothing while working in the fields. For con-

ducting business in town or attending a celebration, they will frequently




-43-


dress as "stylishly" as any vecino. Campesino women customarily wear

homespun polleras for field work and others of finer material in town

or on special occasions. There are also campesino women who wear

Western-style slacks and skirts. Vecino women may wear polleras,

though not of homespun wool, or Western skirts and slacks.

Dress proscriptions were imposed by the Spanish as a visual marker

of indio social status and they remained in effect for that same pur-

pose until the present century. In 1923, dress proscriptions were one

of the issues that contributed to an outbreak of violence between campe-

sinos and vecinos in Sarata and the surrounding region. In the wake of

that disturbance, dress proscriptions were less frequently observed and

enforced until they eventually fell into disuse. Although there are no

active restrictions on how campesinos dress today, there are vecinos

who continue to enjoy making snide remarks about people who they thini

dress too well for their station in life. The memory of dress restric-

tions causes people to agree that they are a marker of differences in

social status, although it is difficult to observe them functioning in

the present.

Language is also agreed to be a marker of social categories in

Sarata, and for some people, it continues to be an issue of tremendous

emotional impact. As was the case with dress proscriptions, it is dif-

ficult to objectively define differences in language use which correspond

to differences between social strata in the present, although in the

recent past, social strata were distinguished by very real language

differences. At the present time, most vecinos are bilingual in Spanish

and Aymara, although there are monolingual Aymara-speakers among the

women. Perhaps one-half of the campesinos are bilingual, with their




-44-


proficiency in Spanish varying from complete fluency to very poor con-

trol. Through the school system, increasing numbers of campesino

children are becoming proficient in Spanish.

In the past, campesinos were prohibited from speaking Spanish.

Some, of course, did, but the vecinos sanctioned the use of Spanish by

campesinos with violence and even death. Spanish was a monopoly of the

vecinos which assured them a mediating role between the campesinos and

the government, the legal system, or other interests from outside

Sarata. By maintaining a monopoly on the use of Spanish, the bilingual

vecinos assured themselves a monopoly on things such as legal or social

justice and economic opportunity. Since most of the vecino families of
5
Sarata do not appear to have been large landowners, this mediating

role was a principal source of economic wealth for many of them.

Thus, in the 1920s, when campesinos began establishing schools in

their communities for the purpose of learning to speak, read, and write

Spanish, it was an "insurrectionary act" that contributed directly to

the violence of 1923 mentioned above. Since this incident, the knowledge

of Spanish among campesinos has grown and their right to attend school

and obtain an education has been generally accepted, but this came only

at the cost of numerous campesino lives. Language, the means by which

the vecinos maintained their domination of the district, continued to

be regarded as a major factor distinguishing them from campesinos.


Vecino families did control much of the choice irrigated land aground
the town, as well as particularly valuable plots throughout the district.
Many campesinos claim that they still own more than their share of the
best irrigated land. However, these holdings were the vecino families'
"subsistence plots" and did not constitute haciendas. By and large,
the hacendado and vecino families of Sarata have not been composed of
the same people.




-45-


Although the features of surnames, dress, and language are not

clear markers of social status in the present, they do call attention

to some interesting features of sarateho social relations. For ex-

ample, the difference noted between male and female dress among the

vecinos, with the men wearing the style of the day and the women tend-

ing to favor pollera skirts, and the presence of monolingual Aymara

speakers among the vecino women, suggest that vecino women may have

closer ties with the non-elite social strata than one might anticipate.

Galdo (1962) has noted that in the nearby district of Vilquechico,

elite women tend to marry men from outside of the district and leave

to reside in other areas. Many elite men remain in Vilquechico and

marry women of lower social position. Participant observation in Sarata

confirmed that vecino males there also frequently marry women of lower

social standing.

The social strata of Sarata that have been defined on the basis of

the features listed in Tables 2-1 and 2-2 may be tested through parti-

cipant observation. Table 2-3 summarizes those features which most

frequently involve easily observable behavior that requires interaction

between individuals of distinct social strata. Interactions between

individuals in the respective social categories are listed in the left-

hand margin. The horizontal axis denotes particular kinds of inter-

actions. The first five interactions are drawn directly from Tables

2-1 and 2-2. Compadrazgo, or "godparenthood," and marriage are not

included in the list of features marking social differences, but are

included here as important interactions which may be observed directly.

Table 2-3 clearly shows that asymmetrical social behavior characterizes

the relations among members of the respective social strata of campesinos,










Table 2-3

Interactions Among Social Strata

Can Ask Shares Dance Invite to
Greets to Work Food Together House Compadrazgo Marriage

campesino campesino + + + + + + +

campesino + town Aymara + + + + + +

campesino + vecino + + +


town Aymara + campesino + + + + + +

town Aymara town Aymara + + + + + + +

town Aymara vecino + + + + +


vecino + campesino +

vecino + town Aymara + + +

vecino vecino + + + + + +





-47-


town Aymara, and vecinos defined by the features listed in Tables 2-1

and 2-2.

It is of interest that "town Aymara" is a locally recognized but

unlabelled social stratum. This has to do with the fact that the "town

Aymara" is a group that has emerged relatively recently. The struggle

over dress proscriptions, going to school, and learning Spanish was very

much a struggle over how people were going to earn a living in the

coming years. As campesinos began to free themselves from the domina-

tion of the vecinos, the economic base of the vecino social stratum

began to shrink. Particularly during the last twenty years, large num-

bers of vecinos have left Sarata, unable to remain in the town and

maintain an acceptable lifestyle. Many have opted for attending a

university and becoming a professional. These individuals now reside

with their families in diverse large urban centers which provide employ-

ment for people with professional training.

At the same time, campesinos dedicated themselves with a vengeance

to numerous jobs involving manual labor and direct participation in

commerce, jobs which, although they may have been lucrative, were con-

sidered inappropriate by most vecinos for people of their social posi-

tion. As the vecinos left town, their property has been acquired by

prosperous people from the countryside seeking easier access to trans-

port and storage facilities, the town high school, and amenities such

as running water and electric lighting at night. They added their

numbers to the small group of artisans and craft specialists that had

resided in the town to form a new social stratum in the town. While

the "town Aymara" lack the social status of the vecinos they certainly

far surpass them in terms of their present economic power.




-48-


These facts signify a breakdown in whatever correlation had pre-

viously existed between high social status and economic wealth. It is

interesting that wealth was not mentioned by people in Sarata as a marker

of social status. Indeed, the names of vecino families never come up

in discussions concerning who are the wealthiest families in the district.

Even campesinos who reside full time in the countryside may be actively

engaged in a lucrative economic activity. It is, in fact, difficult to

find a campesino in the district of Sarata who does not either own

outright or share an interest in a piece of property in the town for

the purpose of facilitating his or her negocio, or "business."

Although Sarata may be a particularly dramatic example, the weaken-

ing of the relationship between social status and economic class appears

to have occurred throughout the department of Puno. Bourricaud (1967),

for example, observed similar processes at work in and around the city

of Puno in the early 1950s. They prompted him to discuss at length the

differences among cholos, indios, and mestizos, as he labelled the social

strata he was observing, focusing upon the questions of which group

was "more Indian" and why.

The acquisition of wealth by members of the campesino and "town

Aymara" social strata of Sarata has placed them in diverse relationships

with the capitalist economy. Subsistence agriculture remains outside

the sphere of the capitalist mode of production. However, campesinos

and "town Aymara" are involved in activities which place them in the

roles of wage laborers, independent mercantilists, and the employers

of what are frequently large numbers of wage laborers. The class dif-

ferentiations of complex capitalist society cut across the lines of

social stratification recognized by saratenos.




-49-


Economic Class


Diversity is the most salient feature of economic activities in

Sarata, particularly among the campesino and "town Aymara" social

strata. During the course of a year, the members of a single nuclear

household may be involved in subsistence agriculture on their fields in

the district, wage labor in industrialized agriculture near the Peruvian

coast, a job in an urban area, the cultivation of cash crops such as

coffee and citrus in the tropical Tambopata Valley of Sandia province,

or in the smuggling of goods back and forth across the international

border with Bolivia. Many individuals are also trade specialists, such

as carpenters, artisans, or mechanics. This diversification of economic

activities may be seen as an extension of the traditional agricultural

practice of owning numerous small plots dispersed over a relatively

large area and of maximizing the diversity of varieties present for each

crop grown. This helps provide protection against localized frost and

hailstorms and reduce losses in the face of disease or blight, very

common phenomena in the insecure physical environment of the altiplano.

In the same way, the diversification of economic activities provides a

measure of protection in the face of an insecure social and economic

environment, which does afford opportunities, but over which individuals

can exert no control (Painter 1978; 1979). Such a diversified strategy

is made possible by a very flexible sexual division of labor, which

allows households to schedule the labor of their members to best ad-

vantage and to continue functioning as productive units despite pro-

longed absences by some members (Collins 1981).

The diversified economic strategy followed by households in Sarata

involves them both in capitalist and non-capitalist modes of production.




-50-


Subsistence agriculture belongs to the domain of non-capitalist produc-

tion. In this case, households own the means of production and do not

employ others to meet their labor needs. During peak periods of agri-

cultural activity, labor requirements that the household does not have

the resources to satisfy are met through exchange relationships with

other households that also require additional labor. The resulting

agricultural production is not sold, but is used by the household to

satisfy its own nutritional needs.

The practice of some specialized trade such as carpentry, in a

rural community, is another activity that does not involve the producer

in a capitalist mode of production as it has been defined here. The

person with the trade owns the means of production and does not normally

employ additional labor. If additional labor is needed, it is generally

provided either by family members or by the customer. Frequently, the

specialist works in order to reciprocate or insure labor services per-

formed by others in agricultural activities in the household fields.

A specialist carrying out a trade in a rural community of Sarata is

invariably a subsistence agriculturalist as well.

A specialist who goes to an urban area to sell a skill for wages

participates in the capitalist mode of production. Migration to urban

areas in search of wage labor is an economic option for both skilled

and unskilled laborers from Sarata. The majority of unskilled laborers

are drawn to the industrial agricultural enterprises in the Arequipa

area, as well as other sections of the Peruvian coast. A smaller number

is involved in mining. Carpenters and bricklayers often find employment

in the construction industry, which is also concentrated in the coastal

region. Most migration to urban areas is seasonal, with the migratory




-51-


periods being determined by slack periods in the Sarata agricultural

cycle.

Most urban migrants are men. People feel that women are not

treated with proper respect in the cities and that the jobs open to

them do not pay as well as the jobs that are given to men. When women

migrate to the cities in search of wage labor, the employment they

usually find is as domestic help. The women who migrate are usually

young and unmarried. Employment as a wage laborer is the clearest ex-

ample among the capitalist economic activities engaged in by the people

of Sarata of individuals owning none of the means of production and

selling their labor as a commodity.

Smuggling is an activity in which people may become involved in a

number of ways, and which takes a number of different forms. The most

constant flow of goods in recent years has consisted of small electrical

appliances such as tape recorders, radios, television sets, and type-

writers entering Peru from Bolivia. Manufactured foodstuffs such as

canned milk, sugar, noodles, and cooking oil, as well as wool, wool

products, and wool-bearing animals were the goods flowing in largest

quantities from the opposite direction. The profitability of ventures

involving these goods is created by the Bolivian policy of unrestricted,

low-tariff imports of manufactured goods and few controls on food prices

combined with high import duties on manufactured goods in Peru.6


6With the election of Fernando Beladnde Terry as president of Peru,
this situation began to change. Food prices, though still controlled,
have increased dramatically and import restrictions on manufactured
goods have been eased. This stimulated some reorientation in the
contraband trade, which was still in a period of flux in December
1980.




-52-


People who engage in smuggling as a source of cash income range

from individuals who buy passage on a truck to the border to go there

on foot and buy only a radio or two for later resale in Juliaca to

people who own trucks and employ numerous workers in their operations.

The large-scale smugglers, who are frequently from rural communities,

thus assume the role of capitalists in their own right, owning the means

of production, in this case transport facilities, and employing the

labor of others for wages. It is also the large-scale smugglers who,

by and large, provide the transportation for those operating on a much

smaller scale.

It may be argued that the small-scale smugglers are involved only

in simple mercantilist production, employing no one as they transport

goods from one area to another for the purpose of earning a profit.

However, the goods smuggled are all tied to international capitalist

enterprises, electronics firms, food processing, and distributing com-

panies, and the world wool market. The number of people and trucks

based in Sarata is greater than could be supported by locally generated

transport requirements. They reflect a local response to opportunity

created by economic phenomena characteristic of areas experiencing

capitalist penetration, increased demand for imported and processed

foodstuffs and for consumer goods. The Sarata smugglers bring the goods

together with the areas of most solvent demand, and their own financial

success depends upon being sensitive to changes in market conditions.

Thus, smuggling as it exists today is both a product of and a vehicle

for continued capitalist penetration of the region.

Smuggling is interesting because of the role women play in the

activity. Both men and women are smugglers; but locally, women are




-53-


regarded as being better at it than men. When a woman in a rural com-

munity becomes directly involved in earning cash as part of the house-

hold productive strategy, she most often begins a "business"(negocio)

in which at least petty smuggling plays a role. However, women are by

no means limited to the ranks of small-scale smuggling. They are the

owners of some of the larger enterprises as well, owning trucks and

employing male drivers. Smuggling is an activity pertaining to the

capitalist mode of production in which a woman may excel without having

to suffer the wage discrimination and decline in social status involved

in going to the cities.

The production of coffee and citrus fruit in the tropical Tambopata

Valley of Sandia province is another activity pertaining to the capital-

ist mode of production in which people from Sarata are involved. There

has been contact between these two regions at least since the Incaic

period; however, large numbers of people first became involved in coffee

and citrus production in the mid-1950s. Citrus fruit is marketed through

private entrepreneurs, being sold primarily in the altiplano region,

although some fruit is taken as far away as Lima. In the early years,

coffee was also marketed through private entrepreneurs who bulked the

production of numerous small-scale producers and sold it on the inter-

national market. Today this function is carried out by government-

established coffee cooperatives. Producers are prohibited by law from

selling their coffee anywhere except to the cooperatives, and to do

this a producer must be a member of a cooperative. The cooperatives

bulk the coffee and sell it on the international market, where most of

it is purchased by large companies for conversion into instant

coffee.




-54-


The coffee and citrus are produced on small, privately owned plots.

The mean landholding in the area occupies 3.5 hectares and the median

is two hectares. A person acquires a plot of land by staking a claim to

an unoccupied or unutilized area, clearing it, and bringing it under

production. Land may also be obtained by purchasing it from another

individual or through inheritance. Not all of a person's landholdings

are dedicated to the production of coffee and citrus. Subsistence plots

are maintained so that producers may grow at least a part of their own

food.

During peak labor periods, particularly the harvest, labor is in-

variably in short supply. This need is generally satisfied by hiring

laborers to pick the coffee and citrus. They are paid a daily wage

determined by how much they are able to pick. A producer's home com-

munity is a primary source of this labor. Friends and relatives are

invited to work and earn some money. The offer to work is frequently

accepted because the daily wage for coffee picking is higher than for

most jobs available to unskilled workers--about $2.00-$4.00 per day.

In addition to their wages, a producer must provide laborers with

their meals and a place to sleep. For many, working as a laborer in the

coffee and citrus fields provides them with a means of learning the

techniques of tropical agriculture in anticipation of claiming their

own lands. The money earned working as laborers is a means by which

potential new producers may maintain themselves during the three to

seven year period between the planting of coffee and citrus trees and

the time they come into production. Producers who employ relatives and

neighbors as pickers will frequently work for them in the arduous task

of clearing new land.




-55-


The revenues which result from cash cropping in the tropical valley

are invested in the highland community. The migration to the area is

permanent insofar as someone owning land there will continue to go year

after year and the practice will be taken up by offspring who either

inherit the landholdings of their parents or have cleared new land-

holdings of their own. However, it is seasonal, with trips to the

tropical area being determined by the demands of the highland agricul-

tural cycle. The Tambopata Valley may thus be seen as a productive

zone of the highlands. Producers have very little interest in long-

term conservation efforts in the region. The steep slopes of the

hillsides rising up from the valley are badly eroded in many areas.

After a number of years productivity decreases due to a decline in soil

fertility. When this occurs, the response is simply to clear land

further down in the valley.

A single household will commonly participate in some combination

of these productive activities, or, in some cases, a household may be

involved in all of them. A household thus participates in both capi-

talistic and non-capitalist activities, and its class position may be

that of subsistence agriculturalists, of wage laborers, or of capitalist

entrepreneurs, depending upon when one chooses to look and upon which

activities attention is focused. The essence of the strategy is to

maintain all of the activities as viable alternatives and to utilize

them to best advantage according to the resources of the household and

the relative opportunities the different activities present at any

particular time.

The diversity of the activities that comprise a household's over-

all productive strategy tends to be less marked among higher social




-56-


status families. Among campesino families, all of the activities that

have been described here are possible ways of earning an income. In

addition, virtually every campesino community has produced people who

have received post-secondary school training and occupy "professional"

positions. Most of these people, of course, no longer live in their

communities because there is no employment there for them, although many

do maintain close contacts with their communities. A few campesinos,

however, have been certified as school teachers and have been assigned

to a school in their home communities, where they reside and work. Thus,

within the campesino communities one can also find "professionals"

participating in the productive strategy.

Members of the "town Aymara" group also participate in all of the

activities described, although they are more likely than the campesinos

to have a specialized trade. This tends to orient their productive

strategies. In many cases, for example, the desire to practice a trade

as an important source of cash income is what prompted a household to

take up residence in the town and be "town Aymara" rather than campe-

sinos in the first place.

Vecinos are the most limited social group in terms of the income-

generating activities in which they engage. Most vecino families own

land on which they grow food to satisfy a large part of their sub-

sistence needs; however, they do not realize the labor themselves.

Rather, they hire people from the lower social strata to do all the

manual labor for them. Many of the vecino families are involved in the

contraband trade across the Bolivian border. They use the social rela-

tions they have with the regional political, military, and police

authorities to minimize the legal difficulties they are likely to




-57-


encounter. Among the lower social strata, the people who run large

smuggling operations must rely on bribes to buy protection. This

generally works, but there are no guarantees that an official who

accepts a bribe not to interfere with a smuggling operation will not

accept a bigger bribe to enforce the law in a particular case. Petty

smugglers simply must hope they are not caught and associate themselves

as closely as possible with someone who is thought to be protected.

While the vecinos are involved in smuggling, they do not involve

themselves in the mechanics of exchanging money or transporting goods.

These tasks are carried out by people of the other social strata who

work for the vecinos in return for wages and help in dealing with legal

or bureaucratic problems and other favors. Vecinos do not engage in

trades such as carpentry, mechanics, or artisanry, and they will work

for wages only in the capacity of "professionals," accepting positions

as teachers or bureaucrats. Most of the vecinos in Sarata who have jobs

work as teachers and bureaucrats in the local school system. Although

such occupations carry with them professional status appropriate for

someone from a vecino family, they are not characterized by particularly

high salaries. This, combined with their limited participation in the

other major economic activities of Sarata and the zeal with which the

lower social strata have participated in them, means that there are

numerous non-vecino households which control more wealth than the

vecino households do. Vecinos do retain some prerogatives of their

social status. Most non-vecinos behave deferentially in their presence,

for example. However, economically they are losing ground to the other

social strata, and with the passage of time their numbers are declining

in Sarata, as many of them go elsewhere in search of more abundant

opportunities compatible with their social position.




-58-


Subsistence Strategies and Capitalist Expansion


Compared to other areas of the Peruvian altiplano Sarata is an

area of abundance. Its climate contributes to greater agricultural

yields than are characteristic of most of the surrounding region. Its

long history of contact with distant regions of the Peruvian coast and

the tropical valleys on the eastern slopes of the Andes in Peru and

Bolivia, combined with a location on the international border between

these two countries, has presented the inhabitants of the area with al-

ternative courses of action that people in many areas experiencing

capitalist penetration have not enjoyed. In fact, capitalist penetra-

tion brought to Sarata not only increased needs for cash, but increased

opportunities for earning it, particularly in areas such as the produc-

tion of cash crops and in trade and transport. There were, and continue

to be, numerous unresolved conflicts and questions regarding the access

of these opportunities and the distribution of the wealth resulting

from them. In spite of these problems, saratehos have thus far been

very successful in comparison with many other rural Latin American

populations in dealing with the changing social and economic conditions

around them.

The nature of Sarata's modus vivendi in the face of capitalist

penetration does raise profound and disturbing questions for those

concerned with problems of rural development, however. Regional urban

centers have grown tremendously in population, particularly in the past

40 years. These population increases have generated like increases in

urban food demand. Yet in a productive area such as Sarata, agricul-

tural production is strictly a subsistence activity. With the exception




-59-


of small quantities of cheeses and some vegetables such as tomatoes,

no food grown in Sarata is sold in response to urban food demands.

The maintenance of a non-capitalist, subsistence agriculture sector

in the household productive strategy can also tell us a lot about the

nature of capitalist expansion into the region. The participation of

the household in the diverse activities open to it is determined by its

ability to meet its basic subsistence needs through agriculture.

People come and go according to the demands agriculture places upon

their time and labor. The scheduling of other activities is tailored

to the agricultural cycle and not vice versa. This is because, although

diverse, economic options available to saratenos are very tenuous. They

may change radically or disappear altogether with a drop in the world

market price of coffee or a change in government policy regarding ex-

ports and imports. Maintaining different activities within the capital-

ist mode of production provides some insurance should an event which

caused a particular activity to no longer be a viable option occur.

Furthermore, a household which is careful to maintain control over the

production of its basic food needs also has some control over when and

where it will enter the capitalist sphere of production.

The centrality of subsistence agriculture to formulating household

economic strategies is also revealing with regard to the nature of

capitalist penetration. The economic activities which pertain to the

capitalist mode of production do not yield enough money and other re-

sources to maintain a household throughout the year. The capitalist

activities are either seasonal in their labor demands, or their legal

status makes them risky as full time employment to all but the most

large-scale participants. The enterprises associated with capitalist




-60-


penetration of Sarata depend upon the continued existence of a non-

capitalist mode of production to meet the subsistence needs of the

labor force they require.

The implications of these conditions for the development of the

region are numerous. This thesis will examine the productivities engaged

in by the household productive units of Sarata and analyze the ration-

ality of the overall productive strategy both from the perspective of

the household and from the perspective of the overall system in which

the household operates. This system is characterized by the articulation

of capitalist and non-capitalist modes of production. A peasant economy

such as found in Sarata is not simply the product of market forces

seeking equilibrium, but is the product of broad social forces within

the framework of a particular historical process. It is these forces

upon which the present work focuses its attention.











CHAPTER III

THE INTEGRATION OF SARATA INTO REGION AND NATION


Introduction


In order to understand the economic situation of Sarata, it is

necessary to look beyond the boundaries of the district. Such bound-

aries are both temporal and geographic. The contemporary strategies

employed by sarateno households have historical continuities with the

strategies observed by the earliest Europeans to write about the area.

Although the specific productive activities have changed dramatically

over time, households have been constant in their efforts to maintain

diversity in their economic interests. By involving themselves in

diverse economic activities, households have maintained flexibility for

responding to changing social, economic, and environmental conditions.

The district of Sarata has been dominated by outside interests

since the Incaic period, when state policies which affected its history

were formulated in Cuzco. During the viceroyalty, general policy

formulation took place at the Spanish court, with implementation being

the responsibility of officials in Lima. Since Peru became independent,

Lima has been the site of policy formulation by national elites and

international economic interests.

Within the regional economy, the city of Juliaca has exercised a

tremendous influence over Sarata and all of southern Peru. A product

of capitalist expansion into the altiplano via the construction of the


-61-




-62-


Southern Peruvian Railway at the end of the 19th century, Juliaca is

the transportation nexus for the entire region. It is now the major

center of capitalist expansion in Puno department. Merchants radiate

outward from it seeking to expand consumer markets and the accumulation

of capital within the city has stimulated the growth of numerous enter-

prizes.

One might argue that capitalist expansion into the Sarata region

was inevitable. However, the specific nature of this expansion cannot

be understood without reference to the goals and policies of those

groups which have held national power and international economic in-

terests. For districts in the altiplano, these policies constitute an

environmental factor as real and as uncertain as temperature and rain-

fall, and their productive decisions reflect their view of national

economic policy just as surely as they do their understanding of pro-

duction on the altiplano. For districts of the altiplano, these poli-

cies become reality, for better or worse in Juliaca. By understanding

this, we also understand what Sarata has in common with the rest of the

altiplano and, in a more general way, with the rest of the nation.



The Integration of Sarata


The term "integration" has commonly had two meanings when applied

to Native American populations in Latin America. One meaning refers to

the organization of these populations into a force for providing the

dominant groups or classes with labor, food, and other goods. It is

generally assumed that the dominant groups or classes have something to

offer in return, such as protection from extenal aggression, public




-63-


works, or salvation and enlightenment. It also tends to be assumed

that, over time, the presumed reciprocity of these relationships will

give rise to integration in the second sense. This refers to the forma-

tion of a polity composed of social groups or classes that, while they

may have divergent interests vis a vis their relationships with one

another, perceive it in their common interest to maintain and defend

the polity. There is ample documentation to show that Sarata has been

integrated into larger social, political, and economic structures at

least since the Incaic period. Integration in the second sense, how-

ever, has been tenuous.

The arrival of the Spanish in Sarata constituted an unprecedented

break with the past in the organization of production. The regional

chiefdoms of the altiplano, which only 60 years earlier had been brought

under the control of the Inca empire, were faced with new forms of

domination. During the years immediately after the conquest, the

principal interest of the new lords was in finding and appropriating as

much of the gold and silver of.the region as they could. The Spanish

lost no time in arriving in the gold mining centers in the valleys of

the Carabaya region. Prior to 1550, the town of San Juan del Oro had

been established as a major gold mining town, and by the end of the

16th century, the Carabaya region was reknowned throughout the Spanish

dominions as the major gold mining center of Peru (MaUrtua 1906:1,

185-186,329).

The obligations of saratenos to the Spaniards multiplied with the

discovery of silver in Potosi, in 1545. The people of the region were

tapped as a source of labor for the tremendous new mine. The labor tax,

or mit'a, of Potosi was greatly feared by the people of Sarata, as very




-64-


few of those who went as tributaries ever returned to their homes. This

was partly due to the cruel and dangerous working conditions of the

mine. However, simple economic reasons also prevented many people from

returning home. Entire households made the trip to the mine, so that a

family's fields often went uncultivated for the duration of their

tribute period. The animals and stored food that had been accumulated

over many years were depleted, since households had to take these pro-

visions to sustain themselves during their journey to Potosi and during

their period of labor. Numerous people who survived the forced labor

did not have sufficient provisions left to-make the long journey home

and pass a year in which there would be no harvest. Under these circum-

stances, many families settled in the valleys near Potosi, where land

was available for cultivation and where, as forasteros, or "outsiders,"

they could not be named for mit'a service again (Toledo 1975:355-356).

The memory of labor tribute remains with the people of Sarata to

the present day. The spot where the principal route to Bolivia passes

through the hills to leave the lakeside area and heads westward across

the altiplano is known as putusi punku, or the "gateway to Potosi."

According to legend, at putusi punku, people who were going to work in

the mines would perform a divination ceremony in which a guinea pig or a

rabbit would be released. If it squeaked or made a noise as it ran

away, the person who released it would return home safely. If the

animal fled in silence, the person was destined to die in the mines.

In 1573, an interview was carried out in the town of Carabuco, on

the northern shore of Lake Titicaca, with the caciques of the towns of

Guaycho, Carabuco, and Sarata. The interview was held so that the

Spanish authorities might gather information on the suggestion that the




-65-


people from these areas be sent exclusively to the gold mines of Cara-

baya to perform their labor services rather than to Potosi. It was

argued that the seasonal nature of the work in Carabaya mines would

allow laborers to maintain agricultural production on the altiplano

while they mined for gold. The authorities decided that the people of

this region should cease going to Potosf and return to Carabaya. Half

of their tribute obligation would be satisfied by the gold they mined

in the valleys and half by the food they produced. If it subsequently

proved to be feasible to increase gold production, the region's tribute

obligation in gold would be increased and the amount of food required

would be reduced (Relaciones Geogrdficas de Indias 1965:68-71).

Sarata and the surrounding areas were originally administered as

part of the encomienda system. People who were granted an encomienda

did not receive a title to an extension of land, but rather were given

the right of lordship to an area. This included the right to exact

tribute in the form of labor, goods, and services from the population

of the area defined in the encomienda. The encomendero was responsible,

in turn, for insuring that the subjugated population was treated fairly

as this was defined by law, for overseeing the religious education of

the population, and for providing for the defense of the area in the

name of the Crown of Castille.

The encomienda of Sarata was first granted to three men, Felipe

Gutierrez, Francisco de Carvajal, and a captain Soto. These men deter-

mined the early tribute obligations and how labor would be distributed

to fulfill them. The extent of the lands included in the different

encomienda grants of the region apparently changed several times, as

did the individuals charged with being encomenderos (Relaciones




-66-


Geogr6ficas de Indias 1965:68-69). By the period of 1578-1583, when a

list was compiled of the lords, officials, tributaries, and other people

in the region, Sarata had passed through the hands of the encomendera,

dona Marina Mungrrez Navarro, and had subsequently reverted to the

Crown (Madrtua 1906:1,188).

In 1565, the colonial authorities introduced the corregimientos de

indios as the basic administrative units of the Peruvian domains. Four

corregimientos were cut out of the region in which saratehos had been

engaging in their productive activities. These were the corregimientos

of Larecaja and Omasuyos in the territory that belongs to Bolivia today,

and the corregimientos of Paucarcolla and Carabaya in what is now Peru.

Saignes (1978) notes that the administrative units created artificial

divisions in what had been a single productive region.

More significant than the political reorganization was the demo-

graphic reorganization that the Spanish worked upon the region. The

most notable effect was the decline in the number of people. While the

altiplano region did not suffer the massive depopulation experienced by

areas such as the Peruvian coast, the decline was quite significant

nonetheless. Sgnchez-Albornoz (1978:34) estimates that the population

dropped by 60 percent between the eve of the conquest and 1693.

The order by the Viceroy Toledo, in 1571, that the Indians congre-

gate in villages, or reducciones, for the purpose of facilitating their

religious training and general administration dramatically altered the

land tenure pattern in the district. The concentration of the producers

in a settlement separated them from many of their dispersed productive

plots. Parish records found in the church of Sarata indicate that,

sometime prior to 1720, a second reduction town had been established




-67-


in the district, to the east and slightly north of the district capital.

This town was established on the site of some pre-Columbian ruins, and

later became a nucleated hacienda settlement. This second town may

have been established for the benefit of highland herders, whose alpaca

could not survive when brought into the lakeside area surrounding the

district capital.

The heavy Spanish tribute obligations brought about another major

demographic change in the Sarata region. Massive numbers of people left

their homelands to escape paying tribute in goods and labor. When they

moved to another province, they were classified as forasteros, or "out-

siders,"by the authorities and were not subject to the tribute. Sgnchez-

Albornoz (1978:60) notes that, in 1684, in the sixteen provinces subject

to the mit'a of Potosf plus the provinces of Cuzco and Arequipa, nearly

half of the population was classified as forastero. The forasteros

constituted up to 90 percent of the total population in some areas.

Evidence from Sarata is consistent with these findings. Church regis-

ters record the deaths of some 900 people in the district in the year

1720 as a result of a major epidemic that affected the area. Of these,

a full 30 percent were listed as forasteros.

Obviously the combined factors of population decline, forced re-

settlement of a significant portion of the population in urban centers,

and the movements of forasteros had a profound impact upon the poli-

tical, social, and economic institutions of Sarata in the wake of the

Spanish conquest. Unfortunately, the paucity of available information

makes the definition and evaluation of the particulars of this impact

extremely difficult.




-68-


Despite the designation of the town of Sarata as a reducci6n short-

ly after 1571, it is not entirely clear how large a portion of the

population actually lived there, or how long the people who actually

were reduced were forced to stay in the town. There were almost cer-

tainly problems in compelling the highland herders to reside in the

town. They required open pasture and a relatively cold and parasite-

free environment for their animals to thrive. As noted above, this may

have provided an impetus to establish a second reducci6n in the district

in an area that was characterized by an environment more suitable for

large herds of camelids. Cultivators would also have found the town a

very inconvenient place to reside and maintain production in their

widely dispersed fields.

The earliest surviving church records which are still kept in the

parish of Sarata date from the year 1692. These indicate that the bulk

of the population of Sarata held membership in one of twelve ayllu.

During the colonial period, the pre-Hispanic ayllu became a recognized

landholding unit with fixed geographical boundaries. Some of the ayllu

of Sarata were made up of contiguous expanses of land, while the lands

of other ayllu were dispersed and separated by distances of several

kilometers. The church records indicate to which ayllu individuals

belonged, but do not indicate where they resided. Residence in the

town would have posed a major inconvenience to cultivators trying to

manage an agricultural strategy based upon diversified landholdings,

particularly once the population of the district began to increase. It

is not clear, however, when the majority of the people returned to re-

side in the countryside as they do today.




-69-


Two social classes are recognized among the Sarata population in

the church records. The yndios were defined by their membership in an

ayllu. The other class is composed of the vecinos del pueblo. Vecinos

were so defined because their relationship to the Crown exempted them

from tribute obligations and gave them control over the labor of the

yndios. In spite of changes in the boundaries of the district, the

transformation of Peru from colony to republic, the subsequent suc-

cession of republican governments, and some major changes in the

economic base of the region, the ayllu has remained the basic Indian

economic and political institution in Sarata until the mid-1960s; and

the terms vecino and yndio (or campesino, in current usage) continue to

mark the basic social distinctions made by saratehos to the present

day.

Another institution which played a role in the integration of

sarateios into the economic aspirations of the dominant classes was

the hacienda. The earliest mention of the existence of haciendas in

Sarata in the parish records is in the first half of the 18th

century. The haciendas of Sarata were not particularly large in com-

parison with hacienda holdings in other areas of the Andes, although

most of the owners are reported to have held land in several of the

neighboring districts as well. The haciendas of Sarata were concen-

trated in the northeast of the district, which was the most important

herding zone. They maintained resident populations of laborers, and

made the first major introduction of sheep into the district.

In spite of these various institutions designed to integrate them

into Spanish colonial society by forcing them to be providers of gold,

food, and labor services, and despite the human costs that such





-70-


integration entailed, saratehos managed to cope with Spanish domination.

Lizarraga (1968:72) noted, in 1609, that the people of the Sarata area

were among the wealthiest Indians of the Viceroyalty of Peru, more

wealthy even than the Lupaqa, who lived on the opposite side of Lake

Titicaca. In addition to providing food as part of their tribute ob-

ligation and providing for their own subsistence, saratenos and other

people from the region sold fresh and salted fish in the markets of

Potosf and Cuzco. While fulfilling their mining obligations in the

valleys of Carabaya, they found opportunities to sell food, animals,

and clothing there (Maurtua 1906:1,216,329). Sarateios also partici-

pated in trading expeditions to the Peruvian coast, taking ch'uiu and

meats down, and bringing back wine, cane alcohol, and fruits (Bueno

1951).



Sarata and the Republic


The Wars of Independence ushered in, or were ushered in by, ideas

of economic liberalism. The relationship for many between political

freedom and the freedom to act unhindered in pursuing their economic

interests was clearly evidenced in the decrees of San Martin, of 1821,

in which he abolished Indian tribute and personal services and freed

the children of the slaves at the same time he declared Peru independent

of Spanish rule. In 1824, Bolivar declared Indians to be the individual

owners of the lands they occupied, with the right to sell their lands

or to alienate them as they chose. This revoked the Spanish colonial

policy of reserving lands as inalienable to Indian communities, and it

opened the way for the usurpation of Indian lands and the outright




-71-


disintegration of many Indian communities for nearly the next one

hundred years.

Not everyone felt that liberal economics would be in their in-

terests, however. San Martfn was also forced to promise large land

grants to his Peruvian generals to insure their loyalty. In 1826,

with Andres Santa Cruz as acting president, Indian tribute was re-

established, and, although the children of slaves had been freed in

1821, slavery was not abolished until 1854. Much of the anarchy that

characterized Peruvian political life from the Wars of Independence

through the War of the Pacific may be viewed as a struggle for power

between those sectors of the Peruvian elite who saw their economic in-

terests lying with the caste-like socioeconomic structure of the

colonial period and those who found the liberal economic policies taking

hold across Europe more to their liking. As first one constituency and

then the other gained the upper hand,issues such as personal tribute,

slavery, and community versus individual land ownership, disappeared

only to re-emerge with the ebb and flow of the political and military

tides.

There were foreign interests which played a major role in this con-

flict. English wool-exporting houses were present in Peru from early

in the 19th century and became a financially stable part of the econ-

omic landscape after the 1850s (Orlove 1977:46-47). Ram6n Castilla

initiated the exploitation of guano by foreign capitalists in 1840,

during the second presidential term of Agustin Gamarra. The construc-

tion of the railroads was initially contracted to a North American,

Henry Meiggs, and was taken over by the British-owned Peruvian Railway

Corporation after the War of the Pacific.




-72-


Foreign interests were crucial in two ways. First, they favored

policies that would leave their entrepreneurial skills unfettered.

This translated into a mobile labor force, free to go where it wished

in search of wage labor and not tied by bonds of personal or customary

obligation to a landlord or member of the local elite. Secondly, for

a number of reasons, Peru proved unable to stay out of debt to these

same foreign interests, and the national elites of the country were

forced to surrender whatever control they might otherwise have had over

the operation of foreign capital in Peru. This marked the beginning of

the loss of control by Peru's traditional agrarian elite over economic

opportunity in the nation.

The district of Sarata became a source of cannon fodder for the

various field marshalls, generals, and colonels who vied for political

control over what would eventually become Peru and Bolivia, and hammered

out the political boundaries between the two new nations. In this re-

gion, the question of whether or not there should be a tribute obliga-

tion imposed upon the Indians was largely academic, since the realities

of the local power structure were such that, law or no law, tribute

obligations to the landlords and vecino families in the town remained

in force (Vasquez 1976).

The first serious attempt to end this state of affairs came with

the unsuccessful insurrection led by Juan Bustamante in 1867. Bustamante

was a member of Puno's regional elite who had travelled widely in

Europe, attained the rank of colonel in the military service, and who

had represented Puno in the national parliament. In 1867, Bustamante

led an insurrection against the regional authorities in protest of their

abuses of the Indian population. The insurrection provoked considerable




-73-


alarm in the department of Puno and an immediate military response.

This response was directed by a colonel Andr6s Recharte, sub-prefect of

the province of Azangaro. The decisive confrontation between Busta-

mante and Recharte occurred on a plain just outside of the town of Pusi,

a district capital of Huancan6 province. Bustamante's poorly armed

force was defeated in a battle which took place on January 2, 1868. He

and many leaders of his force were taken prisoner. The prisoners were

summarily executed, and Recharte distinguished himself by the origin-

ality with which he carried out this task. Bustamante's subordinates

were herded into the kitchen of a Pusi family. The room was sealed and

the prisoners were suffocated with the smoke of burning ajf, or hot

peppers. Bustamante himself was hung up by the feet and decapitated

(Vasquez 1976:205-211).

The action at Pusi concluded, Recharte went to Sarata and other

nearby districts of Huancan6 which had supplied troops to Bustamante

and shown themselves to be of rebellious spirit. There, he joined

forces with local authorities and elites in a vigorous round of killing

and torturing of the inhabitants, the burning of their fields and the

theft of their animals so that they might be reminded of their proper

place in Peruvian society (Vasquez 1976). The impression he made upon

sarateios was such that they immortalized him in a "saying" reflecting

their experiences with political expression; "Let's not meet together

for any reason, or we will be whipped as in Recharte's time."1

The local landlords and elites were naturally delighted to find

someone who would so vigorously defend their interests. Official


Jani kunaru mitisihati. Ichartijamaraki asut'iyasismaw.




-74-


reaction was somewhat more subdued. Most officials were relieved to

have order restored, although many were discomfitted by Recharte's lack

of restraint. There were some initiatives to try to ameliorate the

conditions under which the rural population of the region lived. Others

argued that cruel treatment of Indians should be outlawed, but that per-

sonal tribute-was necessary to keep them occupied and out of trouble.

There was little overt recognition that the simple passing of legisla-

tion in Lima would not change conditions in Puno.2

Recharte's actions inspired some consternation in the circles of

people concerned with the viability of Peru as a nation-state. Without

official consultation with Peruvian authorities, Recharte asked the

Bolivian dictator, Melgarejo, to send troops to help quell the dis-

turbances lest they spread to Bolivia. Melgarejo lost little time in

complying with the request, and a force of some 500 infantry, 300

horses, and two artillery pieces arrived in Sarata from Bolivia around

April of 1867. Many members of the government saw this an an indication

of the fragility of Peruvian sovereignty over the region (Anonymous

1867; Vasquez 1976).



The Arrival of a Capitalist Economy


More significant changes began to affect Sarata and the entire

Puno region in 1876 with the completion of the Arequipa-Puno link of

the Southern Peruvian Railway. Arequipa had already been joined with

the port town of Mollendo. With the completion of the link to Puno, a

direct line of commerce was established between the Peruvian coast and


This problem was discussed by one contemporary, Antonio Riveros
(Vssquez 1976:326-335).




-75-


the Bolivian market network centered in La Paz. Goods which arrived in

Puno from the coast were transported across Lake Titicaca by steamship,

with Bolivian exports making the return trip. Bolivian traffic came to

account for one quarter of the freight hauled on the Southern Peruvian

Railway and gave it the highest ratio of tons of freight to kilometers

travelled in all of Peru (Dobyns and Doughty 1976:201).

One of the most important and best-documented effects of the con-

struction of the railway was the stimulus it provided to the exportation

of wool by bringing vast new areas into the range of agents acting on

behalf of the wool export houses. This was particularly true after the

Juliaca-Sicuani link was completed in 1897 (Appleby 1980; Hazen 1974;

Orlove 1977). New urban centers were created while others declined in

importance. Sicuani, for example, rose from obscurity to become a

major center for the bulking and exportation of wool. Juliaca increased

in population from 516 in 1876 to over 3000 in 1919, by which time it

was on its way to becoming the major commercial center in all of the

southern sierra region of Peru. Lampa, on the other hand, which had

previously been an important urban center, had not even doubled in

population by 1940 (Appleby 1976; 1980).

The growth of the wool economy was not by itself the crucial factor

shaping the economic growth of Sarata, however. Only in the far north-

eastern corner of the district did Aymara herders have large numbers of

alpaca, and raising sheep was largely confined to the haciendas. Most

of the freeholding communities of the district, where the bulk of the

population lived, were characterized by a mixed pattern of subsistence

cultivation and herding or, along the lakeshore, a pattern of almost

strictly subsistence cultivation. Wool played an important role in the

economy of only a small part of Sarata's population.




-76-


The steamship connection from Puno to Bolivia, however, opened up

a number of towns on the shores of Lake Titicaca to commercial trans-

portation. These towns, one of which was Sarata, flourished as commer-

cial centers in their own right, through which passed both legal and

illegal goods that made up the international trade between Peru and

Bolivia (Appleby 1980). Items such as imported Scotch whiskey became

more abundant in Sarata than major urban centers of Peru.

Urban centers in the altiplano began to grow at an even more rapid

rate following the drop in wool prices at the end of World War I. Many

peasant producers were unable to continue to earn a minimum income

raising alpacas and were forced off their lands into the urban centers.

Haciendas responded to the increased economic pressures either by trying

to get rid of any "surplus" peon families, or by trying to expand their

landholdings so they could raise more sheep. The second course meant

that neighboring freeholding communities felt increased pressure on

their lands. Where haciendas were successful in their efforts to ex-

pand their boundaries, freeholding peasants were also forced into urban

centers to search for employment.

These events affected the district of Sarata in two important ways.

First, the growing urban centers placed increasing demands upon those

who remained in the countryside for food. Urban elites responded by

placing greater pressures upon the peasants to turn over larger por-

tions of their production at prices determined by the urban elites.

Secondly, the depressed economic conditions of the region in the wake

of the drop in wool prices meant that urban demand for food was solvent

only at depressed price levels. This made it necessary for the urban

elites who controlled most capitalist trade and transport to resist the




-77-


entrance by outsiders into the domain of food marketing. Outsiders, of

course, meant the people in the rural communities who were becoming in-

creasingly desirous of benefitting from some of the changes they saw

occurring around them.

This period in the economic history of Sarata coincided with other

events occurring in the larger history of Peru, all of which served to

raise popular expectations and make sarateros less willing to live under

the social order that had existed from the colonial period. Among the

earliest of these was the arrival in the region of the Seventh Day Ad-

ventist Church, under whose auspices a school, the first of many Adven-

tist schools, was opened in Platerfa, on the southern shore of Lake

Titicaca, in 1909. The first full-time missionaries, Frederick and Ana

Stahl, arrived in the area in 1911. In the history of the Adventist

church on the altiplano, one witnesses the impact individuals may have

in a propitious historical moment. The success of the Adventists has

had profound long-term implications in the general social and economic

life of the region (Hazen 1974; Lewellen 1978).

After having instituted his work in the Plateria area, Frederick

Stahl began visiting communities in the province of Huancan4 around

1915. As on the other side of the lake, he and those associated with

him were subjected to persecution. He was not permitted to lodge in

the town and was given food and shelter by the people he was missionizing.

Numerous threats were made against him and he often was forced to travel

secretly from one community to another at night, guided by people from

the countryside. Stahl did not speak Aymara, and at that time vir-

tually no one outside of the town of Sarata spoke Spanish. The message

of the missionary was conveyed through an interpreter. In a lakeside




-78-


community near the town, there was one man who knew Spanish. He pro-

vided Stahl with food and a place to stay and did the interpreting of

worship services and other meetings. For his efforts, he and his family

were attacked by people from the town and his animals were seized.

Similar treatment awaited anyone else who was associated with Stahl.

As Lewellen (1978) states, Stahl talked about considerably more

than religion and going to church on Saturday. He talked about estab-

lishing schools and health clinics, and helping people enjoy greater

prosperity. The schools in particular struck a responsive note among

the people. Informants in Sarata unanimously said that it was the pros-

pect of schools that most attracted people to the Adventists and that

the establishment of schools in the rural areas was their greatest

achievement. Even the staunchest of Catholics today say that it was

the Adventists who "awakened" Sarata by bringing education, and it is

they who are credited for the dramatic successes that many of the rural

people have since enjoyed in taking advantage of the new economic

opportunities.

The success enjoyed by another group, which arrived on the scene

at about the same time as the Adventists, also reflected the thirst

for education. In 1920, the Sociedad Pro Derecha Indigena was formed

in Lima. Within a few years, they had allegedly established 170 schools

in the province of Huancane. Townspeople throughout the province claimed

that these schools were in fact centers of subversion in which the

people were being incited to violence against the established order.

To support this charge, they said that there were more adults than

children attending the schools and claimed that many of the people

associated with them were anarchists. There was, in fact, a very high





-79-


adult attendance at the schools, understandable given the tremendous

desire that existed to learn to speak, read, and write Spanish. During

the same period, two men from a community of the district who had pre-

viously attended a clandestine rural school held a large meeting of

peasants and it was decided to form a local chapter of the Tawantinsuyo

Society. A collection was taken up to send the two to Lima to gain an

audience with the president and solicit authorization to establish both

the town of Wancho and its school. They did speak with President Leguia

who authorized their project and, it is said, gave them a map of the

city to Lima to use as a guide for how to set up their new town

(Gallegos 1972).

Work on the new town, called Wancho-Lima, was begun immediately,

with the school and a church being the first buildings constructed.

Streets were laid out to correspond to the pattern of central Lima and

shops were constructed along them in which carpenters, hatmakers, tai-

lors, and other tradespeople practiced their trades. Committees in

charge of public sanitation were established and all of the people par-

ticipating in the project were obligated to live in the town rather than

in the countryside. It was prohibited to speak Aymara within the town

limits, a move that was intended both to reflect and reinforce the

initiative of the people toward literacy in Spanish, and a Wednesday

market was established to weaken the hold of the townspeople upon com-

merce. Finally, delegations were sent to the ayllu of the neighboring

districts, informing them that Wancho-Lima and not Huancane was now the

capital of the district of Huancane (Gallegos 1972).

The townspeople were naturally unsettled by these events and began

reporting that violent acts were being committed by the rural dwellers.




-80-


People in the countryside countered these accusations by charging the

ruling elite or gamonales with looting property, burning schools, and

with massacring Indians engaged in a peaceful meeting. The confronta-

tions began to escalate. Six thousand people were reported to have

surrounded the town of Huancane in March 1922, being dispersed only

after armed clashes. In July of 1922, tensions were eased when the

Prefect of the department came to inspect the situation. He was well

received by a large throng of Indians, who apparently thought he had

come to redistribute land. In late 1923, major disturbances occurred.

Indians had begun coming in from the countryside to perform military

exercises in the town plaza of Vilquechico, and in December, an attack

on the town failed because the people were armed and waiting. A march

was made on Huancane, but this also failed because heavy rains slowed

the progress of the insurgents. After this, troops were brought in and

punitive expeditions were launched against the rural communities

(Hazen 1974).

In Sarata, there are no reports of there having been overt military

activity directed at the town from the rural communities, although one

or more communities were reportedly very active in its support of

Wancho-Lima. The principal subversive activity seems to have been the

continued establishment of rural schools by the Adventists and a general

agitation by the communities for education. However, in July 1923,

townspeople attacked a group of people from two communities, on their

way to town to dance for a fiesta, and bludgeoned them to death. In

November 1923, the town received word that it was to be attacked by a

group from another community who intended to kill the members of the

principal families they found there. The women and children were




-81-


hidden in the church and a pre-emptive strike was led against the com-

munity by the mayor of the town.

Whatever the intent of the people in the rural community was with

regard to the town, they were apparently completely surprised by the

attack that was made upon them. Most of the people were caught unaware

in their houses and fields. Many men were killed on the spot, either

shot or bludgeoned to death. Women were beaten and scalded with boiling

water. A group of men was taken prisoner and led back to town, where

they were subjected to tortures such as crucifixion and being drawn

and quartered or peeled alive in the plaza. Those who were not yet

dead were drowned in a river which passes near the town. Their remains

were buried in a mass grave in the cemetery.

Similar attacks were made against other communities which were

centers of Adventist activities, all characterized by the killing of

large numbers of campesinos and the stealing of their livestock and

produce by the townspeople. Some campesinos eventually managed to make

their way to Lima, where they advised the government of what had been

happening. Troops were dispatched to restore order, arriving at

Sarata's dock on Lake Titicaca by steamship. An investigatory com-

mittee, headed by the Bishop of Puno, was appointed in 1925 by the

Patronatode la Raza Indigena, and that same year, it recommended that

a general amnesty be granted. This was done in 1928, although it did

not entirely halt the acts of repression that were occurring (Hazen

1974).

The significance of the 1923 violence lies primarily in the pro-

cesses that began in its wake. The Adventists continued with their

program of evangelization and education and, in the latter part of the




-82-


1920s, public education first appeared in the district. Campesinos

were permitted to attend school, although pressure was brought to bear

by the townspeople on public school teachers who were thought to spend

too much time with children from the countryside, and campesinos who

allowed education to alter their behavior in the presence of towns-

people were subject to physical abuse. By 1930, one could attend grades

one through three in Sarata. The school system in the district slowly

expanded over the years so that today all public education may be com-

pleted within the district.

The violence of 1923 also stimulated the government to attempt to

maintain more effective control over the area through extensions in the

road network and the establishment of an army barracks in the pro-

vincial capital of Huancan6, in 1940. The extension of the road network

coincided with a shift from rail and lacustrine transport to truck

transport. In Sarata, this appears to have begun around 1929, when the

first truck, driven by a member of the Sarata town elite, became the

first vehicle of its kind to reach the highland capital of the herding

district of Cojata (Appleby 1980). Since that time, the construction

and maintenance of roads that are passable by truck has been a major

concern among Sarata communities, and occupies a substantial portion of

the labor time dedicated to community activities.

The growth in truck traffic marked a decline in truck ridership

(Orlove 1977:149-151) as well as a decline in transport on Lake Titicaca.

As had been the case when the railroad line was constructed, the new

transport network created by the expanding road system made major urban

centers out of insignificant hamlets and turned bustling towns into

shadows of their former selves, depending upon where they happened to




-83-


be located in relation to the most important roads (Appleby 1976;

1980).

The growing terrestrial transportation network had some immediate

effects on Sarata. It decreased the time required to go back and forth

to Bolivia and increased the quantities of goods that could be carried

in either direction. The legal and illegal international trade that

had been actively carried out by parties from both countries for some

time became even livelier. The road network meant that seasonal trips

to Arequipa and the coastal valleys in search of wage labor became

easier, and that goods such as corn could be brought to Sarata in greater

quantities and at lower prices than in the past. Larger numbers of

people being involved in wage labor created a solvent demand for corn

and other imported goods. Seasonal trips in search of wage labor be-

came more frequent and long-distance trading expeditions began to de-

crease in number as people found it more feasible to earn wages and

purchase some of the goods they needed with cash.3

The growth of truck transport also oriented Sarata away from the

urban center of Puno and toward Juliaca. Prior to the advent of truck

transportation, Sarata's primary commercial links were by boat, across

the lake to the departmental capital of Puno. By the 1940s, regular

boat service to Sarata had been halted, leaving the district economy

with Juliaca as its major urban link.






3Such expeditions have not been eliminated completely. Although much
less frequent than "in the time of the fathers and grandfathers," long-
distance trading expeditions either to the coast or to the tropical
valleys of Peru and Bolivia still are common.




-84-


The Urban Growth of Juliaca


The importance of Juliaca in the economic life of Sarata is diffi-

cult to overestimate. Some of the reasons for the economic preeminence

of Juliaca have already been mentioned. It is the rail nexus where

railroad lines coming from Cuzco and Arequipa join, and in turn are

linked to the market network of Bolivia either by steamship or by truck.

The highway network for all of southern Peru appears to radiate outward

from Juliaca. It is the major urban center for the provinces of Lampa,

Melgar, Azangaro, Huancan6, Ayaviri, Carabaya, and Sandia. The prin-

cipal roads in all of these provinces were constructed to connect them

with Juliaca. The highways which follow the shores of both sides of

Lake Titicaca, one going through the cities of Puno and Chucuito and

the other passing through the province of Huancand, also link Juliaca

with La Paz, Bolivia. This makes possible considerable international

trade and transport. Juliaca also has an airport from which depart

regularly scheduled flights to Lima, Arequipa, as well as to the gold

mining center of Puerto Maldonado.

As noted earlier, Juliaca began to acquire importance with the

construction of the railroad at the end of-the 19th century. The

collapse of wool prices at the end of World War I provided the city with

another spurt of growth as the resulting economic difficulties forced

people off the land and into the urban centers of the region. Between

1919 and 1940, the population of the city grew from 3000 to over 6000

people. By 1950, the city had grown to 9248 people. Then, during the

drought-ridden years of that decade, when crop failures occurred year

after year, Juliaca experienced a tremendous surge in population. By




-85-


1960, the city had 20,403 inhabitants (Torres Juarez 1962:14-15,169).

The census of 1972 showed the city with a population of 38,475 inhabitants.

The recession of the 1970s provided the most recent impetus to the growth

of Juliaca. The urban population in 1980 was estimated at nearly 120,000

people, giving Juliaca a rate of population growth matched only by

Chimbote and Pucallpa in all the rest of Peru (Caretas 1980a:56). In

Juliaca, as in the other major urban centers of Puno department, urban

growth has been stimulated by economic development, such as improving

transportation facilities, for example. But, the periods of greatest

population growth have occurred when the region has found itself in

periods of economic crisis (Appleby 1980:43-44).

Size and population growth alone have not bestowed upon Juliaca

the importance it holds in the economic life of Sarata, for the city

is above all a commercial center. The province of San Roman, in which

Juliaca is the only urban center, contains 8.9 percent of the Economic-

ally Active Population (EAP) of the department of Puno. However, nearly

one-quarter of the EAP which engages in commercial activity resides in

Juliaca.4 The people who engage in commercial activity are generally

involved in one of four types of businesses. These include productores

detallistas, or producer retailers, agentes distribuidores, or dis-

tributors, mayoristas, or "jobbers," and minoristas, or retail mer-

chants. The different types of businesses, in turn, are assigned to



"The Commercial Activity of Goods is that economic activity consisting
of transferring goods from the producer to the consumer for their final
use; or their use in production; or in subsequent transfers that do
not involve processes of transformation, with the exception of packag-
ing, packing, plowing and fragmenting" (Velasquez Rodrlguez 1978:26
author's translation).




-86-


one of three "economic sectors," the public sector, the private sector,

and the social sector (Velasquez Rodrfguez 1978).

Juliaca boasts a number of businesses which contribute to making

it the dominant commercial center of the region. The Portland-type

cement, which is manufactured on the outskirts of the city, is marketed

throughout southern Peru and enjoys a near-monopoly position. Juliaca

is also the home of numerous textile manufacturers. These businesses

range in size from individual women knitting and weaving in their homes

to large industrial concerns. They use both locally produced sheep and

alpaca wool as well as imported synthetic wools. Many of the synthetic

products are for local use, while the products made from natural wools

are frequently sold in Bolivia, where prices are higher.

There are numerous distributers who supply the growing local

demand for manufactured goods. These include representatives of multi-

national electronics and small appliance firms. Some of the distribu-

tors sell products legally imported into Peru. Others handle merchan-

dise smuggled into Peru from Bolivia via Sarata and other districts

located near the border. Much of what is smuggled in is sold locally,

while a portion of the goods also finds its way to Lima, Cuzco, and

other cities not blessed with a nearby international border. The dis-

tinction between which entrepreneurs operate legally and which do not

is not a clear one, as many are involved in both legal and illegal

activities.

Juliaca is also the major food distribution center of the region.

Foodstuffs such as noodles, rice, wheat flour, evaporated milk, cooking

oil, and sugar, as well as fruits and vegetables grown in other areas,

and luxury foods are shipped to Juliaca for distribution throughout the




-87-


region. Fruits and vegetables are widely consumed, purchased largely

by small-scale entrepreneurs who sell them in the various rural markets.

Luxury food stuffs such as margarine are distributed less widely,

arriving only at those markets large enough to be frequented by people

with the money and desire to buy them. Products such as noodles, rice,

and sugar are-considered staple foods by the government, and their

prices are controlled so as to make them affordable to as wide a seg-

ment of the population as possible. As a result, a tremendous amount

of staple foods is shipped directly to Bolivia, where the absence of

food price controls means they command a considerably higher price.

As one might expect in a city whose growth has been closely linked

to the railroad and trucking industries, transport remains a major in-

dustry in Juliaca. Goods are shipped into the city for distribution

throughout southern Peru. Juliaca is also the major distribution point

for goods produced within the region and transported to other areas.

Principal among these products are wool from the high-altitude pastoral

areas and coffee, citrus fruit, and wood from the tropical eastern

valleys of the Andes. The railroad was built by foreigners and is run

by the state, so its contribution to the local economy lies primarily

in the goods it carries.

The trucking industry, however, has been a major source of capital

accumulation in the area, and it has served to make wealthy people out

of individuals who are not members of the traditional elites. Part of

the success of this group lay in smuggling and part in anticipating

areas that were about to develop profitable products for export, or in

anticipating local demands for goods imported into the region. Because

they were not members of an elite social class, these individuals were




-88-


not constrained by concepts of what sorts of work are appropriate for

members of a social elite. A number of sarateios may be counted among

this group of emerging economic elites and they serve as role models

for those who have ambitions of achieving upward economic mobility.

In spite of the presence of numerous large enterprises, Juliaca

is primarily a city of petty commercialists. Seventy-seven and one-half

percent of the businesses in Juliaca belong to minoristas (Velasquez

Rodriguez 1978:50). Minorista status is not, by itself, a good indicator

of the size of an enterprise. A number of Juliaca retail establishments

are quite large. However, street vendors and the people who rent spaces

in the city's markets are also minoristas. These are enterprises which

require a minimum of capital to establish. More than 67 percent of the

working capital of Juliaca businesses is controlled by the distribuidores

and mayoristas, while minoristas control only slightly in excess of 22

percent of the working capital. In addition, agentes distribuidores

and mayoristas account for over 69 percent of the total volume of legal

sales made in Juliaca, estimated to amount to about $500,000.00 a month

in 1977, while minoristas account for slightly less than 28 percent of

the total legal sales volume of the city. Perhaps by coincidence,

60 percent of the total legal sales volume of the city is also the pro-

portion controlled by 9.5 percent of the businesses in Juliaca

(Velasquez Rodrfguez 1978:76-77). These figures reflect the presence

of the numerous low-capital enterprises found in the ranks of Juliaca

minoristas.

Appleby's observation that the growth of urban centers in Puno is

more closely linked to periods of economic difficulties in which numer-

ous people are forced to leave their lands has been noted. The minorista




-89-


group is one whose ranks are made to swell by the influx of people.

The same economic difficulties which make it impossible to survive in

the countryside make it nearly equally impossible to find work in the

urban centers. Many seek a solution to unemployment in the establish-

ment of their own small businesses, hoping thereby to earn a subsistence

income.

During the periods of economic crisis noted above, when Juliaca

registered its most dramatic population increases, the pressures which

have contributed most to the displacement of rural households have been

related to three major factors. These have been patron withdrawal,

declining rural income, and increased demands by the urban center.

Patron withdrawal was a particularly significant factor in those areas

of the region dominated by wool-producing haciendas. These haciendas

responded to drops in wool prices, such as occurred in 1919, by trying

to expand their production and cut costs. Peasant families residing

on haciendas found themselves under pressure of increased exploitation,

while communities located on the edges of many estates found that their

lands were subject to loss as the haciendas sought to increase their

productive capacity by encroaching upon their lands (Appleby 1980).

Inflation has played a tremendous role in reducing rural incomes

in the Puno region, particularly in the 1970s. Overall consumer prices

in Peru rose at an annual rate of 44.7 percent in 1976, 32.4 percent in

1977, and 73.7 percent in 1978. Between 1976 and 1978, the annual in-

flation rate for food and services consumed primarily by the low-income

strata of the population reached as high as 137.2 percent (Portocarrero

1980:60-61). The effect of inflation during this period was compounded

by the steady devaluation of the sol in relation to the U.S. dollar and





-90-


other major world currencies. From 1970 through 1979, the official

exchange rate went from 38.7 to 250.1 soles to the dollar. By the end

of 1980, the value of the sol had dropped below 335 to the dollar. In

the department of Puno, rural producers reacted to inflation by putting

less of their own production up for sale and by consuming fewer manu-

factured goods. Inflation prompted a return to specialized production

and distribution within the rural society (Appleby 1979). However, the

increase in departmental urban populations in general and the astronomi-

cal increase of Juliaca in particular indicate that a large part of the

rural population was unable to cope with the economic crisis of the

1970s.

The demands made upon the rural areas of the region by urban cen-

ters have been many and varied through the course of the present century.

Urban centers have increased the quantity of goods reaching the rural

areas of the region. As the urban centers have grown, so have the

scales of their marketing networks extending into the countryside.

This has been a major force since the late 19th century, when the

railroad entered the region. The greatest initial impact of the rail-

road was not in the extraction of wool production, as producers tended

to rely upon traditional marketing procedures for some time. Rather,

the railroad permitted a tremendous increase in the quantity of manu-

factured goods reaching the altiplano for distribution in the country-

side. People began to enter vertical market relationships as a means

of acquiring the new goods (Appleby 1980).

Growing urban centers exerted an increasing demand upon the

countryside for food. Particularly during the first part of

the 20th century, this demand was manifested in coercive market