THE MODERN WORLD SYSTEM

THEORY
 INHERITANCE

 COLONIALISM – Exploitation by FOREIGN DOMINATION [Have and

the have not or

 NEOCOLONIALISM – technical and financial dependence- LATE 1980-

AFTER INDEPENDENCE

 Economic and political consequences are obvious

 What is a system?

 A system is the arrangements of a number of disparate elements in a regular

pattern of relationships e.g. a human body (from a functionalist perspective);
an ecosystem is made up of plants, animals, soils and climate elements.
 Beings a systems means that the parts are interconnected and
interdependent. Changes in one part necessarily affect the other parts
 In Wallenstein’s world system theory, the notion of a system is neatly
expressed by the term global village. What happens in one part of the global
village affects the other part.
 Key attributes of a system

1. Parts are interconnected and interdependent

2. The systemness emerges out of the ways in which parts are integrated

3. This systemness has a certain force and logic of its own and that this unconscious system
power is not the same as that exercised by powerful individuals
4. The system has sub-systems
 The Emergence of the World System

 The world system is the result of the increasing interdependence of cultures and
ecosystems that were once relatively isolated by distance and boundaries.
 Of particular significance to the development of the world system was the European Age
of Discovery, wherein the European sphere of influence began to be exported far beyond
its physical boundaries by means of conquest and trade.
 Wallerstein’s world systems theory

 He argues that the world system is a capitalist system that operate in unequal
economic and political relation in which certain industriesed states and their global
cooperation dominate core of world economic system

 The world capitalist system is functionally differentiated in two ways, namely

horizontally and vertically.
 Horizontally, the system is divided between the core, a semi-periphery and a
periphery.
 Just like the Dependency theory, World-System theory tried to explain the failure of
many countries to develop 
 Main arguments of the theory

 1. Europe was able to prosper by exploiting resources from other places (Africa and latin America)
 2. Europe became wealthy by maintaining economic & military dominance over other nations
(Africa and latin Ari
 3. Exploited nations will never “modernise” as long as they are oppressed by Western nations –
Example: Latin America and Africa traded a lot with Europe and remained underdeveloped
 4. Countries are not poor because of their own specific history or internal characteristics
 5. Rather, they are poor because of their position relative to others in the global capitalist system.
 Key concepts of the theory

 Some of the key concepts are similar to dependency theory:

i. Core: the rich, developed countries: advanced countries
ii. Semi-periphery: semi-industrialised countries:  India, Brazil
iii. Periphery: poor, dependent nations: Africa countries
 World Systems theory

 Dependency theorists e.g Frank, were criticised by later Marxists because:

a. It only describes the relationship between the core and periphery as a

two tier model nor does it explain fully.

b. Wallerstein refined Frank’s dependency theory in his World Systems

Theory
 Four aspects of Wallerstein’s World Systems
Theory

1. Developing countries are not exploited by individual countries but by the whole capitalist,
profit-seeking system in a Modern World System. The MWS is a unified system of
capitalism
2. Three zones in the MWS

i. The core/developed nations – these control world trade and monopolise

manufactured goods

ii. The semi-peripheral zone e.g. Brazil, India, Singapore [Less dependent of Core
nations)

iii. The peripheral countries e.g.. Most of Africa – they provide primary products
for both the semi periphery and the core
 Wallerstein’s
World System Theory
Core
Processes that incorporate higher
levels of education, higher
salaries, and more technology
* Generate more wealth in the world
economy
Periphery
Processes that incorporate lower
levels of education, lower
salaries, and less technology
* Generate less wealth in the world
economy

Semi-periphery
Places where core and periphery
processes are both occurring. Three Tier
Places that are exploited by the Structure
core but then exploit the
periphery.
* Serves as a buffer between core
and periphery
3 Wallerstein’s model is dynamic (This allows for movement and change). Frank’s
two tier model appears static and one way
Countries are ‘socially mobile’ they can move in from the periphery into the semi
periphery (Eg Asian tigers) or out from the core to the semi periphery (Eg
Britain?)
4 While Wallerstein refines Frank’ theory there are still similarities

 Both show how surplus value created in the periphery is appropriated by the semi
periphery and especially the core

 Both see the origins of exploitation of some countries by others to have originated in
slavery, colonialism and neo-colonialism
 Peripheral countries are the poorest countries of the world, many of which are found in
Africa.

 Due to their economic and military power, core countries have a central and directive
role with regard to the peripheral countries
 Semi-peripheral countries occupy an intermediate position, both economically and
politically, between core and periphery.

 Semi-peripheral countries are exploited by the core countries, at the same time semi-
peripheral countries exploit weaker peripheral countries.
 On vertical division, Wallerstein argues that the world system is vertically divided, since
countries situated at any one level occupy qualitatively different positions at that level, i.e., all
peripheral countries are poor, but they are not exploited in the same way.
 Evaluation of World Systems Theory
Weaknesses

I. 1. Both Frank and Wallerstein are economically deterministic

II. 2. Wallerstein does not say how capitalism can be overcome as Marx said it would
 Evaluation of World Systems Theory
Weaknesses (continued)
III. Wallerstein does not look at
internal factors (E.g.
mismanagement and corruption
in the LDC’s)

IV. Methodology is too vague and

unscientific, ‘core’ etc cannot be
clearly operationalised
Locating SA in the world economy

 SA gained its semi-peripheral status from its development of a manufacturing sector.

 SA as semi-periphery increasingly dominated the surrounding peripheries in Southern

Africa, exchanging exports of industrial goods for regional primary goods.