How does world system theory explains newly industrializing countries?

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Information about How does world system theory explains newly industrializing countries?
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Published on April 27, 2014

Author: myothein19

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How does world system theory explains newly industrializing countries?

Myo Thein 31 October 2012

 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.

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

 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.

 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.

 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.

 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.

Core Semi-periphery Periphery

 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.

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

 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.

 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.

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.

 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.

 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.

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.

 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.

 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?

 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?

Thanks. May you be happy and healthy!

 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

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