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VOL. 1, ISSUE 2 (2025)
Perspectives in economic sociology: Formalism, substantivism, market forms, globalization, development and the human economy
Authors
Ganesh Shrirang Nale, Bharat Bhauso Raut
Abstract
Economic sociology has evolved into a rich
interdisciplinary field that explores how economic activities are embedded in
social institutions, cultural norms, and political structures. This article
examines classical debates between formalism and substantivism, highlighting
how anthropological and sociological perspectives challenged the universal
application of neoclassical rationality to all societies. It explores various
forms of exchange—reciprocity, redistribution, householding, and market
exchange—emphasizing that markets are not merely economic mechanisms but
socially constructed institutions that operate through trust, networks, and
regulation. The rise of the new economic sociology reasserted the significance
of embeddedness, contrasting sharply with both old and new institutional
economics, which tend to privilege rational-choice assumptions. The paper
critically analyses the market as a form of exchange, examining tensions
between market efficiency and social efficacy, and the persistent need for
regulation to protect vulnerable groups and ensure equitable outcomes. The
discussion then shifts to globalization, tracing changing patterns of
industrialization, the growth of the service sector, and emerging forms of
corporate governance. Special attention is given to India, where debates over
foreign capital versus indigenous enterprise, the decline of trade unions, and
shifts in labor policy highlight structural transformations in the economy. The
article further explores the political economy of caste, communalism, and
gender, illustrating how social hierarchies interact with economic reforms to
reproduce inequality. Finally, it engages with the human economy approach,
focusing on unequal development, the impact of liberalisation on poverty and
inequality, and the moral economy of corruption. Overall, the paper argues that
economic processes cannot be separated from their socio-political contexts. A
comprehensive understanding of development and globalization requires attention
to power relations, institutional structures, cultural meanings, and the
everyday moral choices that shape economic life.
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Pages:13-16
How to cite this article:
Ganesh Shrirang Nale, Bharat Bhauso Raut "Perspectives in economic sociology: Formalism, substantivism, market forms, globalization, development and the human economy". International Journal of Research in All Subject, Vol 1, Issue 2, 2025, Pages 13-16
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