How does world system theory explains newly industrializing countries?

1. Myo Thein
31 October 2012

2.  Also known as world-systems analysis.
 Multidisciplinary approach to world history
and social change.
 World-systems analysis stresses that the
world-system should be the primary unit of
social analysis.
 World-system refers to the international
division of labour, class distinctions & global
capitalism all of which divide the world into
core countries, semi-periphery countries and
the periphery countries.

3. Core countries
 focus on higher skill, capital-intensive
production, technology, research
Semi-periphery & Periphery Countries
 focuses on low-skill, labour-intensive
production, agriculture production,
providing cheap labour and extraction of
raw materials which constantly reinforces
the dominance of the core countries

4.  Throughout last few centuries the world
system has extended geographically and
intensified economically, some countries
become the world hegemon (leader state)
; this status has passed from Dutch to UK
to USA.
 The system is dynamic, and individual
states can gain or lose the core status
over time.

5.  The rise of the world system traces from the 15th
century when European feudal economy suffered a
crisis and was transformed into a capitalist one.
 The West utilized its advantages and gained control
over most of the world economy, presiding over the
development and spread of industrialization and
capitalist economy, indirectly resulting in unequal
development.
 Seeing the development of the capitalist world-
economy as detrimental to a large proportion of the
world's population.
 Viewing the period since the 1970s as an "age of
transition," one that will give way to a future world-
system (or world-systems) whose configuration
cannot be determined in advance.

7.  Arguing that there have been thus far
only two varieties of world-systems:
world-economies and world empires.
 A world-empire are large bureaucratic
structures with a single political centre
and an axial division of labour, but
multiple cultures. (E.g. Chinese empire)
 A world-economy is a large axial division
of labour with multiple political centres
and multiple cultures.

9.  Throughout the history of the modern world-system there has
been a group of core nations competing with one another for
access to the world's resources, economic dominance, and
hegemony over periphery nations.
 A core nation is dominant in three forms of economic dominance
over a period of time:
1. Productivity dominance allows a country to produce products
of greater quality at a cheaper price compared to other
countries.
2. Productivity dominance may lead to trade dominance. Now,
there is a favourable balance of trade for the dominant nation
since more countries are buying the products of the dominant
country than it is buying from them.
3. Trade dominance may lead to financial dominance. Now, more
money is coming into the country than going out. Bankers of
the dominant nation tend to receive more control of the
world's financial resources.
 Military dominance is also likely after a nation reaches these
three rankings.

10. Core
Semi-periphery
Periphery

11.  World-systems theory was influenced by
dependency theory (a neo-Marxist) explanation
of development processes.
 World-systems theory emerged in the 1970s
aiming to replace modernization theory.
 Wallerstein criticized modernization theory due
to:
1. its focus on the state as the only unit of
analysis,
2. its assumption there is only a single path of
evolutionary development for all countries,
3. its disregard of transnational structures that
constrain local and national development.

12. Existing in the wider global system.
Serve economics interest of core countries.
Three characteristics of dependency theory:
(1) international division of labour,
(2) class distinction between rich and poor,
(3) global capitalism

13.  There are International Division of Labour
between CC, PC, CP and PP.
 CC dominate due to industry, technology,
research and capital intensive industry.
 Especially PP countries depend on resource
extraction, agriculture production and
providing cheap labour.

14.  PC serves the economic interest of CC.
 CP serves both the economic interest of CC &
PC.
 PP serves all the economic interest of CC, PC
& CP.

15. Feudalism middle age in Europe. Plutocracy today.
Rich, Nobel & Church
represent 10%of
population and
represent 83% of wealth.
Peasants and workers
represent 90% population
and share the 17% of
wealth.
Super rich represent
1% of population and
control 43% of wealth.
World 99% population
share 57% of the wealth.

16.  Each states (CC, PC, CP & PP) got clear
divide between rich and poor (masses).
 Rich people (political and economic elite) all
cooperate with another in order to maintain
the system the way it is.
 These elites collaborate each other to ensure
they stay in power and to increase their own
wealth.

17.  It is global capitalism.
 Liberal economic theories dominate.
 Theories of trade and finance dominate.
 All serve interest of CC.
 MNCs & Banks are instruments of rich people
in the CC.
 International institutions such as WB and IMF
all serve the interest of richest people in CC.
 Media and Education also serve the interest
of CC.

18. The entire system (1) international division of
labour, (2) class distinction between rich and
poor, and (3) global capitalism all serve the
interest of richest people of CC.
They don’t serve interest of developing
countries.
They don’t promote development and equal
opportunities.
They system promote dominance and
exploitation.

19.  From Dependence Theory perspective how
can state possibly develop under such kind of
international system?
 The system designed to prevent them from
developing.
 The system promote underdevelopment.

20.  What will happen in next 40 years?
 Will there be the third World War?
 Will religion relevant in modern science and
technology?
 Will people colonize Mars, Venus or the other
planets?
 Are there any human being in an another
planet?
 Are there aliens in our galaxy?
 Will world-systems theory still relevant in
next 50 years?

29.  What will happen in next 40 years?
 Will there be the third World War?
 Will religion relevant in modern science and
technology?
 Will people colonize Mars, Venus or the other
planets?
 Are there any human being in an another
planet?
 Are there aliens in our galaxy?
 Will world-systems theory still relevant in
next 50 years?

31. Thanks. May you be happy and healthy!

32.  Wallerstein, I. , 1976, The Modern World-System I:
Capitalist Agriculture and the Origins of the European
World-Economy in the Sixteenth Century. New York:
Academic Press.
 Fordham University, 1997, Modern History Sourcebook:
Summary of Wallerstein on World System Theory.
Retrieved10 October 2012 from
http://www.fordham.edu/halsall/mod/Wallerstein.asp
 allensens, 27 February 2012, Dr Allen Sens: Dependency
Theory. Retrieved 10 October 2012 from
http://www.youtube.com/watch?v=JN6LlMY2ApQ
 GlobalRegents9, 30 December 2010, Global History and
Geography 9: Distribution of Wealth”. Retrieved 10
October 2012 from
http://www.youtube.com/watch?v=eful-Rm2JO4