Reading Social Policy from Polanyi’s Perspective: Problem of the Market, Wealth, and Labor

The Great Transformation, published in 1944 by Karl Polanyi, brought a new dimension to the relationship between market, state, and welfare. Polanyi considered the relation between markets and societies as a central feature of any social order; according to him, while the market destabilizes society...

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Bibliographic Details
Main Author: Abdülkadir Şenkal
Format: Article
Language:English
Published: Istanbul University Press 2022-06-01
Series:Sosyal Siyaset Konferansları Dergisi
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Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/355C1E9F8A8C4FF5B8EFF397DCE6A146
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Summary:The Great Transformation, published in 1944 by Karl Polanyi, brought a new dimension to the relationship between market, state, and welfare. Polanyi considered the relation between markets and societies as a central feature of any social order; according to him, while the market destabilizes society, the commodification of labor, land, and money creates a reaction or “counter-movement.” For this reason, he describes market society as being a dominant principle for social organization. Social relations are embedded within the economic system instead of the economy being embedded in social relations. Polanyi also claims that market society is a political and social construct rather than a natural phenomenon. Yet, the rapid growth of government bureaucracy and interference in the private sphere has challenged many traditional notions related to the nature of capitalist society, especially since the 1940s. Therefore, the state plays an important role in both the establishment and regulation of the private market economy. This article proposes an interpretation, in the context of the contemporary welfare state based on Polanyi’s The Great Transformation, which discusses the distinction between market, welfare, and labor. The institutions, that once contributed to embedding the market economy within society, now play an important role in situations that have potential consequences for those seeking help from the welfare state.
ISSN:1304-0103
2548-0405