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In the introduction of the 2001 edition of The Great Transformation, Fred Block argues that we all have much to learn from the insights of Karl Polanyi. Relying on Polanyi’s arguments in the Great Transformation is not only useful in order to understand the history of market liberalism, but also for the contemporary debate on globalization and its contestation. The work of Karl Polanyi is inspiring a lot of academics nowadays who are studying the global uprisings since 2008. Some academics –...
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In an age of egregious inequality and rising authoritarian, many call for a new “moral economy” and turn to Karl Polanyi’s The Great Transformation for inspiration. Yet Polanyi’s great insight is that those who cannot reckon with the moral economy of “market justice”—the claim that market outcomes, however unequal, are morally just—fail to understand the power of capitalism. Justified by its original claim to rest on natural science, market justice laid the predicate for democracy as mortal...
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This chapter draws on Polanyi’s analysis of the economy-democracy tension to discuss today’s crisis in Greece and the Eurozone. First, some of the economic and social effects of the Greek austerity programme are discussed with reference to his observations on liberal international interventionism in the interwar period. Secondly, the chapter looks at the ways in which democratic outcomes (elections, referenda, parliamentarian decisions, etc.) in Greece and elsewhere were, during different...
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With the critical derivatives and financialization literatures as background, I argue in this essay that risk markets (i.e., derivatives and insurance markets) play an integral role in insulating global neoliberalism from popular and elite demands for reform, as well as from the related imposition of new forms of government intervention. Inspired by Polanyi’s “double movement” and Bryan and Rafferty’s (2006) notion of “blending” in derivatives markets, the argument rests upon the insight...
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Karl Polanyi's demanding vision of freedom and democracy seems far from the reality of our times and current ideologies. However, a deeper analysis reveals the ability of his political philosophy not only to find a solution of the paradox of liberty in spite of social constraints, indeed through social institutions, but also to answer the most important practical question with which we are confronted: that of improving, as Polanyi says, "our chances of survival." The conception synthetically...
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In the first part of the paper, the concepts of "planning for freedom" by Friedrich Hayek and Karl Polanyi are compared. Hayek rejects "central planning" and also all kinds of "planning for specific aims," but he defends the principle of "planning for competition" as the main condition of a free society. This principle includes the provision of a pertinent institutional framework and state intervention to create markets in spheres of society previously ruled by nonmarket principles. Polanyi...
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