Few figures are more crucial to understanding the upheavals of our contemporary era than Karl Polanyi. In a world riven by social and economic crises, from rising inequality to the decay of democratic institutions and profound technological disruption, Polanyis path-breaking account of the dynamics of market capitalism and his defence of society and nature against the dangerous tendencies of the market capitalist system are more relevant than ever.

This book brings together Polanyis most important articles and essays to give a unique selection of his essential shorter writings, mixing classic texts with significant but previously little-known pieces. It highlights the coherence and richness of Polanyis theoretical and political approach, making it indispensable for understanding his overarching intellectual contribution. The volume includes his interwar writings, which deal with the world economic crisis and the socialist alternative to conservative and fascist developments; his reflection on political theory and the international situation after the war; and his comparative studies of economic institutions. Polanyis political writings are complemented and supported by the critique of economic determinism and what he termed our obsolete market mentality.

This book is an invaluable companion to Polanyis masterpiece, The Great Transformation, and an essential resource for students and scholars of political economy, sociology, history and political philosophy.

Karl Polanyi (1886-1964) was one of the most influential political economists of recent times. His book The Great Transformation is generally acclaimed as being among the most important works of economic history in the twentieth century.

Claus Thomasberger is Professor at the University of Applied Science Berlin.

Michele Cangiani is Professor at the Ca' Foscari University of Venice.

Acknowledgements vii

Introduction byMichele Cangiani andClaus Thomasberger 1

Part I Red Vienna 13

1 On Freedom 15

2 New Reflections Concerning our Theory and Practice 41

3 The Functionalist Theory of Society and the Problem of Socialist Economic Accounting 51

Part II The World Economic Crisis and The Rise of Fascism 59

4 Economy and Democracy 61

5 The Mechanism of the World Economic Crisis 66

6 The Essence of Fascism 81

7 The Fascist Virus 108

Part III On Marx and the Christian Roots of Western Civilization 123

8 Fascism and Marxism 125

8.1 Fascism and Marxian Terminology 125

8.2 Marxism Re-Stated 129

9 Marx on Corporativism 135

10 Community and Society. The Christian Criticism of our Social Order 144

11 Christianity and Economic Life 154

Part IV The Great Transformation, Political Philosophy and Democracy 165

12 Jean-Jacques Rousseau, or Is a Free Society Possible? 167

13 Common Mans Masterplan 177

14 The Meaning of Parliamentary Democracy 187

15 Our Obsolete Market Mentality. Civilization Must Find a New Thought Pattern 197

Part V Alignments on the International Stage 213

16 Why Make Russia Run Amok? 215

17 British Labour and American New Dealers 226

18 Universal Capitalism or Regional Planning? 231

Part VI Towards a Comparative Study of Economic Institutions 241

19 On Belief in Economic Determinism 243

20The Livelihood of Man, Introduction 251

21 The Economistic Fallacy 263

22 The Two Meanings ofEconomic275

23 The Economy Embedded in Society 290

Postscript 299

24 Hamlet 301

Notes 314

Index 327