The Economy as an Autopoietic System : The Consequences of Globalization

Abstract

Over the last decade, criticisms on globalism such as market fundamentalism and disparity between the riches and the poor have been subject of controversy. The purpose of this paper is to explore the operative mechanism of the economic system, referring Luhmann's social systems theory and consider the social cultural consequences of functional differentiation in global level concerning the economic system. First, we analyze the Luhmann's theory of autopoietic economic systems and point out its efficacy and limits. Although the sustainability of economic system depends on sequence of payments, it confronts instability and weakness when capital/labor scheme arises to represent social critical issues. This drives us to the question how is social inclusion possible. Referring this consideration, we investigate further the autopoietic mechanism of functional systems and social semantics. From view point of equality and inequality, we see the complementary interaction of economic system and social description of meaning to recover the weakness of autopoietic system. Marx illustrated the revolution to solve the contradictions of capitalism externally. By contrast autopoiesis theory implies gradual internal solution accompanied by tension between the time and social dimension. Finally, we consider the consequences of economic globalism, focusing the difference between semantics and culture in terms of autopoiesis and explained the logical possibilities.