Abstract: The paper borrows some of Laozi's ideas to interpret the classic anthropological case of "Kula Ring". It is suggested that Kula society illustrates Michael Mann's question of "devolution" conundrum. Two concepts of Laozi help us to capture two characteristics of Kula society:first,"non-accumulation" (buji) allows us to understand that no matter how hard people try to acquire Kula treasures and fame,neither can be accumulated,thereby preventing the concentration of economic and political power. Second,"small kingdoms with few people" (xiaobang guamin) reveals that the organization,technology and calendar of Kula society purposefully limit the size of society. Kula's trading rules also keep the society peaceful,thereby inhibiting the accumulation of political and military powers. The paper argues that Laozi gives us a unique perspective to better understand the overall purpose of Kula society:through deliberate non-action,Kula society could be kept in a "non-civilized" state of devolution.

Key words: devolution, kula, Laozi, “non-accumulation”(buji), “small kingdoms with few people” (xiaobang guamin)