Mark Granovetter's Social Embeddedness

2966 Words6 Pages

Introduction and Overview The legalization of drugs, particularly cannabis, is a fascinating intersection of economic opportunity and societal transformation. This shift prompts significant changes across economic, legal, and social landscapes. Through the theoretical frameworks of Mark Granovetter’s social embeddedness and Karl Polanyi’s market embeddedness, this paper explores the complicated impact of drug market transformations. It examines the economic implications outlined by Steven B. Duke and Albert C. Gross, including potential financial savings and community health benefits, alongside broader effects on employment, real estate, and public policy. Additionally, to deepen the exploration of the economic and social impacts of drug legalization, …show more content…

Granovetter notes, "social relations, rather than institutional arrangements or generalized morality, are mainly responsible for the production of trust in economic life" (Granovetter, 1985, p. 490). This insight is crucial for understanding how formerly illicit networks will adapt to new legal frameworks, potentially altering their operational norms and strategies to fit a legalized marketplace. Karl Polanyi’s concept of embeddedness further extends the ideas put forth by Granovetter by emphasizing that markets are not just social constructs but are also significantly influenced by legal, cultural, and ecological frameworks. Polanyi argues that the economy is "embedded and enmeshed in institutions, economic and non-economic" (Polanyi, 1944, p. 71), which implies that economic systems cannot be thought of as independent from the societal contexts in which they operate. This embedding suggests that the market system is shaped by the various social and institutional norms prevalent within that society. Polanyi’s analysis implies that the sociological and economic implications of legalizing drug markets are significant. The …show more content…

Steven B. Duke and Albert C. Gross detail the potential benefits, stating, "the legalization of drugs would... save the taxpayer money, and generally benefit both individuals and the community as a whole" (Duke & Gross, 1993, p. 1152). They estimate that legalization could lead to "savings on prohibition enforcement expenditures and tax revenue of $47.1 billion annually" (Duke & Gross, 1993, p. 1154). Moreover, they argue that reducing the illicit drug trade through legalization would "likely lead to a reduction in crime" and make neighborhoods "more desirable places to live," potentially increasing property values (Duke & Gross, 1993, p. 1156). Echoing Duke and Gross's analysis, Dr. Espinosa discusses the significant but hard-to-quantify impact of illegal or informal markets, especially in South America. He notes, "It's a big impact; it's just hard to tell how big. In countries like Ecuador, drugs have become increasingly important very quickly, largely due to a reduction in political caution regarding drug transit." This situation escalated following the removal of U.S. airbase surveillance, which had previously helped control drug trafficking through Ecuador. The growing cannabis market in the United States is projected to reach "$42.98 billion by 2024" (Financial Sector Report,

Open Document