Formalism vs Substantivism

Economic Anthropology:

                

                 Its a field that explains human economic behavior in the widest historic,geographic and cultural scope. 

Formalism vs Substantivism:

                 Karl Polanyi in his work called "The Great Transformation" made the debate.

Substantivism:

• System oriented economy
• Substantive economy
• Production Optimisers (They work according to the needs of society and work just enough to survive and produce adequate surplus)
• Primitive Economy
• Economic decision making is based on social relations,cultural values,moral concerns,religion etc.. but not based on individual choices
• Kinship based economy or non market based economy
• According to Polanyi , Substantive economy is an instituted process of interaction between man and his environment which results in a continuous supply of want satisfying material means
• Unlimited resources and less population density 
• Non Market Economy
• Primitive Socialism

Advantages and Disadvantages of Substantive Economy:

           Equality,Solidarity,Security and fraternity are maintained where as there will be a very slow development

Proponents of Substantivism: George Dalton, Paul Bohannan

Formalism:

• Actor oriented economy
• Formal Economy
• Production Maximisers
• Based on individual choices
• Market Based Economy
• Rational Economy
• Neo Classical Economy
• Political Economy
• Alienation is an important consequence of actor oriented economy
• Scarce Resources but very high population density
• Capitalism is found 

Advantages and Disadvantages:

         Fast development is found but inequality,pseudo consumerism,conflict are found. Rich become richer and poor become more poorer.

Proponents of Formalism: Raymond Firth,Harold K Schneider

Previous questions on this topic:

1. Critically examine formalists and substantivists view on applicability of economic laws in primitive societies(2015)

2. Formalism vs Substantivism (2011)