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Karl PolanyiAnglo-American social scientist
Date of Birth: 25.10.1886
Country:  USA |
Content:
- Karl Polanyi: A Critical Institutionalist
- Immigration and Academic Career
- The Great Transformation and Economic Embeddedness
- The Self-Regulating Market as Utopia
- Social Construction of the Self-Regulating Market
- Democratic Socialism and Critique of Social Democracy
- Legacy and Influence
Karl Polanyi: A Critical Institutionalist
Early Life and CareerKarl Polanyi (1886-1964) was an Austro-Hungarian-born sociologist, historian, economist, and political scientist. Born to a prominent Hungarian intellectual family, Polanyi earned a law degree from the University of Budapest in 1909. After working as a lawyer, he pursued journalism and served as an officer in the Austro-Hungarian cavalry during World War I.
Immigration and Academic Career
In 1933, the rise of fascism in Austria and Germany forced Polanyi to emigrate to London. There, he began his academic career and specialized in socioeconomic history. He taught at the London School of Economics, Oxford University, and London University.
The Great Transformation and Economic Embeddedness
In 1944, Polanyi published his seminal work, "The Great Transformation." He argued that market principles have not been universally dominant, even in economic life. Polanyi emphasized the "embeddedness" of the economy in society, and identified three primary principles of social connection: reciprocity, redistribution, and the market.
The Self-Regulating Market as Utopia
Polanyi criticized the idea of a self-regulating market, stating that it is based on a utopian assumption. He believed that such a system could not sustain itself without destroying society's human and natural resources.
Social Construction of the Self-Regulating Market
Polanyi argued that the self-regulating market in 18th-century Britain was not a product of spontaneous evolution but rather a "social construction." Through state intervention and the promotion of ideologies, free market principles were established but later gave way to state regulation.
Democratic Socialism and Critique of Social Democracy
Polanyi advocated for democratic socialism, which aimed to subordinate the self-regulating market to democratic society. He criticized social-democratic policies that focused on protecting the poor, arguing that they could lead to disincentives for work.
Legacy and Influence
Polanyi's ideas had a significant impact on economic history and economic anthropology. However, they were initially marginalized due to their challenge to prevailing liberal and Marxist ideologies. In the late 20th century, Polanyi's work gained wider recognition as traditional ideological systems failed to address contemporary economic problems. Today, he is considered a classic of economic sociology and a major inspiration for left-wing thinkers and institutionalists.
