The Great Transformation

The Great Transformation

The Transformation in the modern state happened because of the changes in market economy. There were tensions in the classes of the society at the time of the expansion of the market.

While the economy was becoming liberal the rights of the citizens also had to be protected. The economic liberals contended that no regulations are needed for the protection of the citizens as they believed that the market would have resolved it’s difficulties. Polanyi thinks that the idea of self regulating market is utopian and will not last.

He believes that changes in society did not happen just because of class as liberal and Marxist explained it. He thinks that the situation of the work poor in England is the same as Kaffir in South Africa and the Indian masses. Are these people the bottom billion whose condition is the same everywhere? Is their condition parallel even now or are the bottom billion in economically sound countries much better than those in poor countries? Is there any parallel between the situation of the poor in England, Kaffir in South Africa and the Indian masses? It depends on how their situations is viewed if compared with the others in their own country then their situation would seem to parallel each other but their situation cannot be seen as parallel to each other.