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The history of economic systems is the history of the creation and redistribution of wealth for the use of human communities, and of the epistemological paradigms that have underpinned this struggle. In my thesis, I present one facet of this enduring clash through the analysis of two such paradigms, and explore their relation to the current phenomenon of globalization. I believe that the nature of the current explanations of globalization, which are generally one-dimensional, is unsatisfactory and that we need to respond to the challenges to the legitimacy, distribution of benefits and costs that are increasmgly brought against globalization. I use of three tools in my analysis: 1. A multifaceted approach to globalization; 2. A theoretical premise that allows for complex links between market activity, the social sphere and the individual. In this sense I use, at the highest level of abstraction, the dialectic between Polanyian and Hayekian perspectives to highlight the concerns regarding the interplay between states, markets and individuals; 3. An Austrian-Weberian inspired theory of institutions and organizations that, as a mid-range theory of action, organically links the two and leaves individuals room for meaningful action within the two. I argue that the challenges that the globalization is encountering can only be tackled by incorporating a strong participatory process inspired by a deontological vision of human beings. Only by allowing individuals meaningful and free choice can the current model of globalization develop into a legitimate, sustainable socio-economic regime.