The Great Transformation The Emergence of Market Society

Introduction
According to Karl Polanyi, in his book The Great Transformation, the development of the modern state actually grew hand in hand with the development of market economy (Polanyi, 1944). In this case, it is important to look at the development of the market economy, given that it has already dominated the present global economy. Given that the cold war has already ended, and the socialist experiment with other countries has ceased to exist, the market economy has remained the dominant economic mode in the world today. In this case, this paper will try to present a characterization of the market society, as well as why the transformation to this kind of economic mode has played a significant part, especially in the development of world history (Polanyi, 1944). Of course, it is true that the world has in fact witnessed different economic modes throughout its history in this case, this paper would also try to discuss the difference between the market economy from earlier structures of previous social organizations, given that this is essential in determining the extent of the effects of the development of the market economy to our present society.

As stated by Polanyi (1944), the changes actually brought about by the market economy has played a significant role in the destruction of the earlier social order which was very firmly established in previous social organizations that existed in the course of world history, which is actually the basis of this greatness. In this case, then, there is an importance on identifying the different changes that has to be made in order for the market society to take its place vis a vis the development of modern states. In addition, this paper would also try to look into the changes in the material condition, specifically in the profound changes that have taken place in the workplace, in order for us to understand better what where the specific changes that have to be made in order for the market society to develop. This paper will also try to loom at the primacy of economic rationality as stated by Weber (Bendix, 1962), in its major role in the ideological conditions of the development of the market society.  Finally, this paper will also try to look at the different material and ideological conditions which actually served as requisites for the development of the market economy, including why the shift to the market economy has indeed become a fundamental socio-economic transformation that the world did undergo, and which effects is still experienced up to the present day.

Material Conditions
According to Polanyi (1944), one of the main reasons why the market economy has actually been a great transformation is because of the fact that the development of this type of economy has in fact depended upon profound changes upon former kinds of social organization and social orders of earlier kinds of pre-market societies (Polanyi, 1944). However, before understanding these changes, it is important to look at the earlier structures of previous social organizations. Polanyi (1944) actually identifies three general kinds of exchange relations of society which was common to all societies that preceded the market economy reciprocity, redistributive, and householding. By citing empirical evidence from social anthropology studies, Polanyi actually argued that all of these three where present both in tribal societies, in ancient kingdoms, and even in feudal societies, all which predate the rise of the market economy (Polanyi, 1944). The principle of reciprocity was expounded as the reciprocal exchanges of goods, which may be don between social entities, which he argues was essential for survival and the sexual organization of societyfamily and kinship (Polanyi, 1944). Meanwhile, the principle of reciprocity was explained as essential in the organization of proper social relationships in society, especially through the organization of both trade and production under a central entity, whether it be a tribal leader in tribal societies, or a feudal lord in feudal societies (Polanyi, 1944). In this case, Polanyi (1944) actually argued that these kinds of organization was actually bounded up in social ties, and is based around underlying social relationships. The third principle, householding, was argued by Polanyi (1944) to play a great social rile in the course of worlds history, for this concept was all about production for ones own use  (Polanyi, 1944). In this case, according to Polanyi, such principle will actually form the basis for the development of the market economy (Polanyi, 1944). In this case, he also argued that such principle, the individualistic production for ones own sake did not predate both reciprocity and redistribution on the contrary, this only existed, he argues on more developed societies, the one who have a relatively developed agricultural base to support it (Polanyi, 1944). On summary, Polanyi argues that reciprocity and redistribution was characterized by, respectively, social ties and vertical ties, reiterating the primacy of social relations which hinged such economic organizations. Polanyi (1944) then argued that the market society actually brought about a profound change in these kinds of organizations, wherein the development of the market society actually brought about the primacy of individual gain, and of economic reasons over social ties.

In addition, Polanyi also argues that the development of the market economy undermined the primacy of social relationships on economic organizations it is actually social relations which turned out to be embedded into the economic system (Polanyi, 1957). In is in this way where the market society actually proved to be a great transformation the underlying social relationships which determined economic organizations where erased, personal gain was emphasized, and it is actually social relations which revolved around the self-regulating mechanism of economic exchange, which pointed out to be the market economy (Polanyi, 1957). In this case, it is also important to note the different changes that where actually needed to be done in the workplace, which turned out to be essential in the shift towards the development of production for the self, for the market economy. This paper will focus two events the disbandment of peasants from large farms and the development of modern industrial workplaces in the onset of the industrial revolution. On the beginning of the nineteenth century, the English actually began to implement the two laws that radically changed the workplace, the English Poor Law (1834), and the English Factory Act (1833) (Polanyi, 1944). These laws actually forced farmers out of their production from the land, and made them workers to large farms in industrial centers (Polanyi, 1944). Such acts made existing social ties in economic production as invalidated, and transformed them into workers of large scale industrial centers which were centered on for profit production under a self-regulating market (Polanyi, 1944). This process turned workers alienated as tools of production for the market (Rinehart, 1996).

Ideological Conditions
In this case, it is also essential to expound one of the most important ideological bases for the emerging of the market society, which is centered upon rational choice (Bendix, 1962). Market economy actually depended upon the assumption that it is the rational choice for humans to choose first their own good, and led to the individualistic and own-centered production, from the social organization of production to the focus on the address of needs under a self-regulating market (Polanyi, 1944, 1957). However, Weber (as cited in Bendix, 1962) actually said that this rationalism only developed from the rise of Protestant ethic, and was not universal in origin.

The rise of the market society along the course of history can actually be summarized under a tremendous socio-economic shift, from gemeinschaft to gesselschaft (Polanyi, 1944, 1957). This is characterized by the shift from an economic organization based upon social ties, and coming from a central entity and vertical and social relationshipsall to an economic system where social relationships as a base for economic organization is erased, and from where economic organization hinges upon a self regulating mechanism, where social entities are even embodied (Polanyi, 1994). This also includes an ideological shift from the primacy of social gain to the rational choice of individualistic and self-centered production.

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