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The humanization of the economy through social innovation

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Abstract

In his book The Great Transformation (1944), Karl Polanyi introduced the concept of a double movement in society. The first movement is towards marketization: the spread of market thinking and market-based forms of allocation throughout society, driven by international trade and naturalist ideas of competition and utilitarianism. The second movement consists of social protection against the negative consequences of that same marketization through state-based social security systems. This second movement has taken several forms, such as the creation of factory regulations (offering protection against work place hazards and worker exploitation), social security of some sort (state-based poor relief and support for the old and sick), and rise of (nationalistic) fascist parties (promising protection from threats to culture or country). In this paper, we argue that Polanyi's two-movement model is best reformulated as a three-movement model of i) marketization, 2) state-based social protection and 3) the humanization of the economy. The third movement is a countermovement to the first movement and to some elements of the second movement. Like its two cousins, the humanization movement reaches across sectors, and is based on specific organizing principles that shape the characteristics of formal and informal governing institutions. The three movement model helps to make sense of current developments: the rise in humanization initiatives, against the background of marketization and reform of the welfare state. We view this third movement as a process of humanization and re-embedding as the opposite of dis-embedding: the loss of social ties and sense of purpose in individualistic societies. It is not re-embedding in the sense of restoring the past, which in our view, was not a time of happily embedded people. Efforts at or processes of re-embedding can, however, involve the re-discovery or restoration of old organisational forms, which are then recreated in a modern form. The paper makes a contribution to the literature on transformation and social innovation. It is based on a dialectic view of the world containing different logics which interact with each other but also have their own vehicles for change in the form of institutions, networks, practices, and self-legitimation. Empirically the focus is on Western countries and social innovation initiatives that are based on a positive appreciation of social ties (human bonds), the commons, practices of sharing and collaborating with an important role for personal integrity and intrinsic motivations. 1 This paper is based on research for the TRANSIT project and is an attempt at theoretical generalisation. TRANSIT is an international research project that develops a theory of Transformative Social Innovation that is useful to both research and practice. It is co-funded by the European Commission (grant agreement no 613169) and runs for four years, from 2014 until 2017. The TRANSIT consortium consists of 12 partners across Europe and Latin America. For more information, see http://www.transitsocialinnovation.eu/. We thank Pieter Glasbergen for offering critical comments on an earlier version. 2

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... Market provision is often associated with efficiency and self-interest, civil society and family provision with community and solidarity, and state provision with democracy and justice. These value concepts are not necessarily or exclusively tied to the respective modes, and therefore dynamics of change and extension are possible: There are calls for a 'transfer of values' from one mode of provision to another, such as calls for more efficiency in state and civil society, or inversely for 'humanizing' the economy (Kemp et al. 2016). There are also objections to such 'transfers', such as warnings of profit maximization colonizing civil society and the family etc. ...
... 13 But see Roberto Unger (2015), who discusses social innovation in terms of his emancipatory philosophy of enhancing human freedom. Kemp et al. (2016) say that their approach of humanizing the economy is based on a combination of liberalism and communitarianism (Kemp et al 2016). Jacobi et al. (2017) link a focus on social innovation and marginalization to a basic justice perspective based on the capabilities approach. ...
... 13 But see Roberto Unger (2015), who discusses social innovation in terms of his emancipatory philosophy of enhancing human freedom. Kemp et al. (2016) say that their approach of humanizing the economy is based on a combination of liberalism and communitarianism (Kemp et al 2016). Jacobi et al. (2017) link a focus on social innovation and marginalization to a basic justice perspective based on the capabilities approach. ...
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... The authors mention the Western-world renaissance of Do-it-Yourself practices, which gained innovative significance in these contexts for their opposition against mass-manufactured consumption. The many recent proposals of new organizational forms, solidarity-based relations, and alternative business models appear innovative against the backdrop of commercialized and bureaucratized societal structures (Kemp et al. 2016). This restorative side of SI has also been recognized in grassroots innovation scholarship, in the 'shadowy side of innovation' as described by Shove (2012, 372) and in the understanding of SI as 'repair work' (Schubert 2019). ...
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... Social innovation as a process responds to at least three different stimuli: intrinsic needs people have (e.g., for self-determination, social bonds, and to be engaged in activities and relationships they find meaningful); perceived failings of mainstream systems or gaps in mainstream provision; and, change in the wider socio-material context that present problems or opportunities . Kemp et al. (2016) argue that social innovation is often a reaction to institutions and developments that are perceived as "dehumanizing." People who form social innovation initiatives are often drawn together by shared values, shared ways of seeing, framing or reframing challenges and shared visions of how to address challenges 'differently'. ...
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... Finally, Kemp et al. (2016) explain that the many local alternatives that have sprung up throughout the world should not be considered as isolated but rather as the manifestation of what they call, in reference to Polanyi, a bottom-up movement for the "humanization of the economy." They use the term "humanization of the economy" as an umbrella term to cover activities of living and working based on values of reciprocity, responsibility, citizenship, integrity and autonomy, connectedness and trust (e.g. ...
... 93 If these are the underlying problems, then Kemp et al.'s proposal to re-embed the economy in society and nature points towards an interesting route for solutions. 94 Building on Polanyi, they observe a triple movement in society: marketisation, the spread of market thinking and coordination throughout society, state-based social protection and (here they extend Polanyi's analysis) a humanisation of the economy, re-embedding it into society and nature. 95 With the latter movement, based on a major European research project on social innovation, they refer to "less hierarchi-cal forms of decision-making in business and public organisations, new and nonprofit ownership models, greater self-determination in work, ethics-based forms of consumption (…) commons-based peer production, social enterprises, alternative currencies, communal ways of living and working, the sharing of urban spaces and participatory budgeting (…) in all sectors." ...
Chapter
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... A starting point for exploring this in TRANSIT has been the concept of social-economic development waves as articulated by Polanyi. It has been further developed by Kemp et al. (2016) in this project with the idea of a third movement of the 're-embedding of the economy' which posits that TSI can be understood as part of a 'third wave' (a response to earlier waves of marketization and bureaucratization) that involves 're-embedding' or 'humanisation' of socialeconomic development. TSI journeys emerge and develop in a wider historical context. ...
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Grassroots innovations emerge as networks generating innovative solutions for climate change adaptation and mitigation. However, it is unclear if grassroots innovations can be successful in responding to climate change. Little evidence exists on replication, international comparisons are rare, and research tends to overlook discontinued responses in favour of successful ones. We take the Transition Movement as a case study of a rapidly spreading transnational grassroots network, and include both active and non-active local transition initiatives. We investigate the replication of grassroots innovations in different contexts with the aim to uncover general patterns of success and failure, and identify questions for future research. An online survey was carried out in 23 countries (N = 276). The data analysis entailed testing the effect of internal and contextual factors of success as drawn from the existing literature, and the identification of clusters of transition initiatives with similar internal and contextual factor configurations. Most transition initiatives consider themselves successful. Success is defined along the lines of social connectivity and empowerment, and external environmental impact. We find that less successful transition initiatives might underestimate the importance of contextual factors and material resources in influencing success. We also find that their diffusion is linked to the combination of local–global learning processes, and that there is an incubation period during which a transition initiative is consolidated. Transition initiatives seem capable of generalising organisational principles derived from unique local experiences that seem to be effective in other local contexts. However, the geographical locations matter with regard to where transition initiatives take root and the extent of their success, and ‘place attachment’ may have a role in the diffusion of successful initiatives. We suggest that longitudinal comparative studies can advance our understanding in this regard, as well as inform the changing nature of the definition of success at different stages of grassroots innovation development, and the dynamic nature of local and global linkages.
Book
Is more economic growth the solution? Will it deliver prosperity and well-being for a global population projected to reach nine billion? In this explosive book, Tim Jackson a top sustainability adviser to the UK government makes a compelling case against continued economic growth in developed nations. No one denies that development is essential for poorer nations. But in the advanced economies there is mounting evidence that ever-increasing consumption adds little to human happiness and may even impede it. More urgently, it is now clear that the ecosystems that sustain our economies are collapsing under the impacts of rising consumption. Unless we can radically lower the environmental impact of economic activity and there is no evidence to suggest that we can we will have to devise a path to prosperity that does not rely on continued growth. Economic heresy? Or an opportunity to improve the sources of well-being, creativity and lasting prosperity that lie outside the realm of the market? Tim Jackson provides a credible vision of how human society can flourish within the ecological limits of a finite planet. Fulfilling this vision is simply the most urgent task of our times. This book is a substantially revised and updated version of Jackson's controversial study for the Sustainable Development Commission, an advisory body to the UK Government. The study rapidly became the most downloaded report in the Commission's nine year history when it was launched earlier this year. In 2017, PWG was published in a second, substantially revised and re-written edition that updates the arguments and considerably expands upon them. https://www.cusp.ac.uk/pwg/
Book
The governance of natural resources used by many individuals in common is an issue of increasing concern to policy analysts. Both state control and privatization of resources have been advocated, but neither the state nor the market have been uniformly successful in solving common pool resource problems. After critiquing the foundations of policy analysis as applied to natural resources, Elinor Ostrom here provides a unique body of empirical data to explore conditions under which common pool resource problems have been satisfactorily or unsatisfactorily solved. Dr Ostrom uses institutional analysis to explore different ways - both successful and unsuccessful - of governing the commons. In contrast to the proposition of the 'tragedy of the commons' argument, common pool problems sometimes are solved by voluntary organizations rather than by a coercive state. Among the cases considered are communal tenure in meadows and forests, irrigation communities and other water rights, and fisheries.
Article
Self-determination theory (SDT) differentiates motivation, with autonomous and controlled motivations constituting the key, broad distinction. Research has shown that autonomous motivation predicts persistence and adherence and is advantageous for effective performance, especially on complex or heuristic tasks that involve deep information processing or creativity. Autonomous motivation is also reliably related to psychological health. Considerable research has found interpersonal contexts that facilitate satisfaction of the basic psychological needs for competence, autonomy, and relatedness to enhance autonomous motivation, which comprises intrinsic motivation and well-internalized extrinsic motivation. SDT has been applied in varied cultures and in many life domains, and research is reviewed that has related autonomous and controlled motivation to education, parenting, work, health care, sport, and close relationships. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Article
COMMONS-BASED peer production is a socio-economic system of production that is emerging in the digitally networked environment. Facilitated by the technical infrastructure of the Internet, the hallmark of this socio-technical system is collaboration among large groups of individuals, sometimes in the order of tens or even hundreds of thousands, who cooperate effectively to provide information, knowledge or cultural goods without relying on either market pricing or managerial hierarchies to coordinate their common enterprise. While there are many practical reasons to try to understand a novel system of production that has produced some of the finest software, the fastest supercomputer and some of the best web-based directories and news sites, here we focus on the ethical, rather than the functional dimension. What does it mean in ethical terms that many individuals can find themselves cooperating productively with strangers and acquaintances on a scope never before seen? How might it affect, or at least enable, human action and affection, and how would these effects or possibilities affect our capacities to be virtuous human beings? We suggest that the emergence of peer production offers an opportunity for more people to engage in practices that permit them to exhibit and experience virtuous behavior. We posit: (a) that a society that provides opportunities for virtuous behavior is one that is more conducive to virtuous individuals; and (b) that the practice of effective virtuous behavior may lead to more people adopting virtues as their own, or as attributes of what they see as their self-definition. The central thesis of this paper is that socio-technical systems of commons-based peer production offer not only a remarkable medium of production for various kinds of information goods but serve as a context for positive character formation. Exploring and substantiating these claims will be our quest, but we begin with a brief tour through this strange and exciting new landscape of commons-based peer production and conclude with recommendations for public policy.
Article
Many problems of inequality in developing countries resist treatment by formal egalitarian policies. To deal with these problems, we must shift from a distributive to a relational conception of equality, founded on opposition to social hierarchy. Yet the production of many goods requires the coordination of wills by means of commands. In these cases, egalitarians must seek to tame rather than abolish hierarchy. I argue that bureaucracy offers important constraints on command hierarchies that help promote the equality of workers in bureaucratic organizations. Bureaucracy thus constitutes a vital if limited egalitarian tool applicable to developing and developed countries alike.
Book
How can we best understand the impact of revolutionary technologies on the business cycle, the economy, and society? Why is economics meaningless without history and without an understanding of institutional and technical change? Does the 'new economy' mean the 'end of history'?an we best understand the impact of revolutionary technologies on business organization and the business cycle? These are some of the questions addressed in this authoritative analysis of modern economic growth from the Industrial Revolution to the 'New Economy' of today. Chris Freeman has been one of the foremost researchers on innovation for a long time and his colleague Francisco Louca is an outstanding historian of economic theory and an analyst of econometric models and methods. Together they chart the history of five technological revolutions: water-powered mechanization, steam-powered mechanization, electrification, motorization, and computerization. They demonstrate the necessity to take account of politics, culture, organizational change, and entrepreneurship, as well as science and technology in the analysis of economic growth. This is an well-informed, highly topical, and persuasive study of interest across all the social sciences. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/economicsfinance/0199251053/toc.html
Chapter
This chapter discusses both the positive psychology movement (PPM) and self-determination theory (SDT), arguing that SDT is a prototypical example of a positive psychology theory. SDT provides a nuanced, integrated, and scientifically supported framework for understanding optimal functioning, while also addressing “negative” processes that can get in the way of optimal functioning. Two primary prescriptions for positive psychology researchers are derivable from SD: that the autonomy-supportiveness of providers will be crucial for the success of any positive intervention or context, and that the success of positive interventions or contexts can be gauged by how well they meet participants’ needs. Accusations that positive psychology is overly individualist are considered from the lens of SDT, which has already faced and answered such challenges. We suggest that the PPM might adopt SDT as a general framework within which to conduct many types of positive psychology research.
Article
Karl Polanyi's 1944 book, The Great Transformation, has been recognized as central for the field of economic sociology, but it has not been subject to the same theoretical scrutiny as other classic works in the field. This is a particular problem in that there are central tensions and complexities in Polanyi's argument. This article suggests that these tensions can be understood as a consequence of Polanyi's changing theoretical orientation. The basic outline of the book was developed in England in the late 1930s when Polanyi was working within a specific type of Marxist framework. However, as he was writing the book, he developed several new concepts, including fictitious commodities and the embedded economy, that led in new directions. Because circumstances did not give him the time to revise his manuscript, the book is marked by a tension between these different moments in his own theoretical development. The result is that Polanyi glimpses the concept of the always embedded market economy, but he does not name it or elaborate it.
Article
Sustainable development is prompting a re-assessment of innovation and technological change. This review paper contributes three things towards this re-assessment activity. First, it considers how the history of innovation studies for sustainable development can be explained as a process of linking broader analytical frameworks to successively larger problem framings. Second it introduces an emerging framework whose allure rests in its ability to capture the bigger picture: the multi-level perspective on socio-technical transitions (MLP). Whilst burgeoning researcher networks and literature suggests this policy-relevant theory is attractive, it is not without its challenges. The third purpose of this paper is to elaborate these challenges as areas for further research and development. We do this by drawing upon contributions to this special section and the wider literature.