The Economic Burden of Lavish Funerals in African Kinship Societies

Imagine attending a funeral in Ghana, where the deceased's body is kept in a mortuary for months while the family raises funds for an extravagant ceremony. This is not just a cultural tradition but a reflection of the intense kinship ties that dominate many African societies. Funerals in Ghana, and across sub-Saharan Africa, are lavish affairs that can cost tens of thousands of dollars, far exceeding the median income. This spending pattern, where more is spent on funerals than on healthcare, is not just about honoring the dead but is a display of kinship loyalty.

In kinship societies, the extended family or clan is the central social unit, providing services that modern states typically offer. However, this comes with obligations, such as contributing to expensive funerals, which act as a public demonstration of loyalty to the kin group. These obligations prevent individuals from accumulating wealth, as any surplus is quickly claimed by the kinship network.

The lavishness of funerals serves as a costly signal of commitment to the kinship group, making it difficult for individuals to save or invest in their future. This system of wealth destruction hinders economic growth, as it discourages personal wealth accumulation and investment in businesses. The kinship network's need to prevent defection by its most productive members results in a cycle of enforced mediocrity.

While kinship networks provide essential welfare functions, they also suppress economic development by prioritizing kinship loyalties over individual rights and impersonal institutions. This lack of trust in larger institutions is one reason why African societies struggle to develop large firms and achieve economic takeoff.

However, technology offers a potential escape for individuals trapped in these networks. Mobile phones and private bank accounts allow people to hide their income from their kin, enabling them to make independent financial decisions. This newfound privacy can lead to increased spending on personal healthcare and other needs, highlighting the liberating potential of modern financial systems.

Ultimately, the extravagant funeral is not just a cultural practice but a manifestation of a social order that prioritizes kinship obligations over economic progress. Until this social order changes, much of Africa's wealth will continue to be buried with the dead.