Social and Economic Transformation With the Institutional Economic Perspective

Social and Economic Transformation With the Institutional Economic Perspective

Mehmet Yunus Çelik (Kastamonu University, Turkey)
Copyright: © 2020 |Pages: 25
DOI: 10.4018/978-1-7998-0333-1.ch007
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The events and phenomena in the period of the industrial society were explained within the context of the Newtonian paradigm. In today's information society and its economic structure, they are explained within the context of the Quantum paradigm. Nevertheless, the assumption of neoclassics claims that consumers decide independently from each other, which is controversial. Consumers decide in real terms, not independently but under the influence of psychological situation, social environment, and cultural infrastructure. The basic mutual point between the two paradigms is to maximize the benefit from the goods to be consumed when making consumption decisions. To this end, the process of social and economic transformation will first be discussed in the light of paradigm shift and technological improvements. Then, with the institutional economic perspective, the change in consumption understanding will be taken into consideration in the social and economic structure of today.
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Change and transformation has been generating the essence of presence and history (Hughes, 1995, p. 9). Besides, it has been the constant destiny of social structures (Yazıcı, 2013, p. 1490). The process of change and transformation is an integrated system that includes the technological, economic, socio-cultural and political dimensions, within the historical structure, from being an individual to society. The main technological paradigm, which forms the basis of the social development stage, has moved to a new and higher level each time. This process of change and transformation has sometimes been thousands of years according to different periods of social development and structuring and sometimes it is limited to centuries. Today, this process is much shorter than in the past. As humanity reached knowledge, it accelerated the process of change and transformation, but it never prevented change and transformation. It is a fact that the phenomenon of change and transformation will change and it must be accepted that the change and transformation will always remain in existence. The underlying reason for the inability of preventing change is the endless needs of people. Meeting the needs seen infinitely brings the phenomenon of consumption to the fore. The differentiation in the social structure also ensured that the consumption concept differed according to the social structures. In this context, since the early ages, every person who uses innovation and information to dominate nature has shaped his needs and consumption activity accordingly. After that, innovation and knowledge began to dominate people. In order to be able to see this process in a sound framework, it is necessary to explain the change and transformation in societies, the pioneering developments and basic activities, and the reasons for the people's reaction to these developments for years.

In this study, the effects of change and transformation and its impacts on social and institutional structures will be examined in the light of the Veblenist scientific thought, which criticizes the orthodox economic theory and forms the theoretical foundations of institutional economics. Additionally, the effects of social and institutional change and transformation on consumption activities will be analyzed. In this context, it will be explained that traditional understanding is shaped within the framework of Newtonian mechanical thought and modern understanding is shaped within the framework of Quantum thought. As a result, beyond the Newtonian thought, it will be emphasized that Quantum thought should dominate social and institutional life.

Key Terms in this Chapter

Tribe: It is a social structure in the primitive society, consisting of families linked by social, economic, religious, blood ties, with a common culture, dialect and traditionally having a recognized leader.

Quantum Paradigm: It is the paradigm in which everything affects everything and everything is influenced by everything within the multiple, mutual and cumulative causal relationship that emerges on the basis of quantum physics.

Globalization: Globalization is the spread of products, technology, knowledge and business across national borders and cultures. Explain the interdependence of nations in the world supported by free trade economically.

Consumption Society: It means the organization of societies within the framework of their consumption rather than the production of goods and services, and is the result of capitalism.

Industrial Revolution: It is a process that started with the use of steam engine in production in 1765. The industrial revolution is defined as changes in manufacturing and transport using machines in larger factories rather than manual production.

Paradigm Shift: It is the replacement of the old paradigm by the emerging new paradigm, depending on scientific improvements. Particularly technological, economic, socio-cultural and political field is to experience radical changes.

Newtonian Paradigm: It is a paradigm, also known as mechanical thinking, which predicts static and Point analysis based on cause and effect relationship.

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