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The paper is an application of the economic anthropology of Karl Polanyi to contemporary rural Hungary. After addressing the influence of Polanyi’s critique of market society and his standing in the discipline of anthropology, the main focus is the community of Tázlár on the Danube-Tisza interfluve. The paper traces the history of the ‘fictitious commodities’ of land and labour in this relatively isolated settlement, which was not fully integrated into the national society until the...
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This article – a modified version of a lecture – is a contribution to the reception of Polányi in the West and the East, more precisely, to the inquiry about what impact Polányi’s views have had on American and Hungarian economic sociology, which are the contact points between the two, and what research perspectives they offer. It concentrates on the perception of embeddedness and redistribution, not touching on other views unless they are conducive to the comprehension of certain...
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With the contemporary crisis of liberal democracy and the rise of illiberalism in the aftermath of the global financial crisis we need a theoretical framework that links modernization, crises and the fate of democracy. In my paper I attempt to show that Polanyi’s thinking represents such a framework. I focus on Polanyi’s historically informed political economic analysis of the tensions between liberal finance and liberal democracy. In the first section I reconstruct Polanyi’s political...
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This article is devoted to the evaluation of the institutional matrices theory (IMT), which was designed to illustrate the differences between Russian and Western political economic systems. IMT has no matrix, and it is an ideological declaration rather than a theory. It is a set of assertions and assumptions that are adopted without evidence, and then hypostatized to be Russian and Western socioeconomic systems. IMT literature claims to utilize the reciprocity, redistribution, and exchange...
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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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How can we explain why Karl Polanyi's book The Great Transformation is more relevant today than ever before? The central thesis of the paper is that Polanyi's analysis is groundbreaking because it goes far beyond the interpretation of the civilization of the nineteenth century. By focusing on the "belief of economic determinism," Polanyi challenges the juxtaposition of being and thinking, of material life-process and consciousness. He rejects the assumption that society encompasses a world...
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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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