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Chapter 1: Karl Polanyi
CHAPTER 01 21/2/05 8:46 AM Page 4 1 Karl Polanyi Barry L. Isaac Karl Polanyi (1886–1964) was a Hungarian lawyer turned journalist and economic historian whose reading of anthropology, especially the work of Bronislaw Malinowski and Richard Thurnwald, led him to produce work that made major contributions to economic anthropology, classical Greek studies and post-Soviet eastern European social policy. (This last reflects his lifelong devotion to the question of individual freedom in industrial societies; Polanyi 1936, 1944: 249ff.) In fact, the concepts he developed with the aid of anthropology, and for which he is known in that discipline and in classical studies, were intended as tools for analysing industrial societies and especially for explaining the causes of the Great Depression and the fascism of the 1930s and 1940s (see Goldfrank 1990). His larger aim was to lay the groundwork for a general theory of comparative economics that would accommodate all economies, past and present (see Polanyi 1957; Halperin 1988, 1994a ; Stanfield 1986, 1990). His contributions to classical studies fall outside the scope of this chapter (see Duncan and Tandy 1994). In anthropology, his influence was great during the 1960s and 1970s; subsequently, his work became strongly identified with the ‘substantivist’ side of the strident and irresolvable ‘formalist–substantivist’ debate, and his prominence faded when the formalists largely won the day. Polanyi’s master work was The great transformation (1944), in which he analysed the emergence and (in his view, disastrous) consequences of a new type of economy, market capitalism,...
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