Reflection Paper on The Great Transformation by Karl Polanyi

The theory that I would find it appropriate to apply to the context of Polanyi is
Realism. Every country will do everything they can for their states survival. Every state will
want to gain as much resources as they can. State will also act in self interest in the event of
threats where they might have to disregard treaties signed with their allies.
I do agree to a certain extent with the writer on the topic where he mentioned gold is
the remaining pillar during the old days. As the gold remaining pillar broke, everything will
be chaotic. The chaotic event is subjected to how our society is constructed and our
understanding towards the value of gold. Gold is an important assets to determine value of an
object, however a sudden change in the currency system definitely will wreak havoc upon the
people that is new to the idea of paper currency. Though countries now has all used paper
currency in replacement of gold, the idea of having gold being the standard of currency
remain. Countries will always have abundant of gold reserves in their vault in preparation for
any disaster where they paper currency might plunge. The amount of gold reserves of a
country is a good indicator on the strength of the countrys economy.
The writer continues on with balance of power with I will disagree where Polanyi
wrote that the treaty to end war have a contradiction where defeated parties unilaterally
disarms themselves where it might be a problem. Every state will inevitably wants to achieve
a balance of power with other states but that does not means that having such system is
inherently more stable. When every states have balanced power and aligned with the theory
of realism, there will be more wars, disputes and fighting because all the states wants to have
influence over the other states through coercive forces. Even bipolar system is not stable as
history shows during the cold war where America and Soviet Union, the 2 big superpower of
the time, both states because balance of power will arm themselves infinitely in attempt to be
more powerful than the other state. A Unipolar system in my opinion will be more stable as
all countries will submit to that unipolar state, hence wars can be reduced compared to having
a multipolar or a bipolar system. The important thing for the unipolar state to have is advance
technology in all aspect but most important military where it sends out a message indirectly
to other states that it will be impossible for weak states to win the unipolar state in a short
amount of time. An example for it would be a comparison of America and China. America
has nuclear powered aircraft carrier in the 1950s which is powerful enough to have those
carrier lasted half a century in services. China however only managed one aircraft carrier
2012 by refurbishing an ex Soviet carrier where China procure from Ukraine.