Wallersteins World System

Theory
Under development and
dependency theory continued

Lesson aim: To critically

evaluate World Systems Theory.
TSSBAT:
Outline

Wallersteins World System Theory.

Discuss the MWS and outline core, peripheral
and semi-peripheral nations with examples
of how each exploits or is exploited.
Define the term capitalist system and
discuss how this system exploits all nations.
Compare WST and Dependency theory and
evaluate.

Sum it up!
Using

the blank A4 paper and no

books! Sum up what you can remember
about dependency theory.
10 Minutes for this!

A recap:

What do the above diagrams show?

What are the weaknesses of the dependency
theory?

Wallersteins World System

Theory
There are 2 major intellectual building blocks of worldsystem theory, as conceived by Wallerstein: Marx and
dependency theory.
Dependency theorists e.g Frank, were criticised by later
Marxists because:

It only describes the relationship between the core and

periphery as a two tier model and doesnt explain it fully.

Wallerstein refined Franks dependency theory in his

World Systems Theory

What's new then?

Rather

than a two tier model Wallerstein

believed in a three tier model, he called
A Modern World System. (MWS)

The core nations

The semi-peripheral nations

The peripheral nations

Whats new?

The Core Nations:

Core

countries are dominant capitalist countries which

exploit semi-peripheral and peripheral countries for
labour and raw materials.
Core countries (e.g., U.S., Japan, Germany) are
characterised by high levels of industrialisation and
urbanisation. Core countries have high wages and
high technology production patterns and lower
amounts of labour exploitation and coercion. Core
countries own most of the worlds capital and
technology and have great control over world trade
and economic agreements. They are also the cultural
centres which attract artists and intellectuals'.

The Semi-Peripheral
Nations

Semi-peripheral countries (e.g., Taiwan,

Mexico, Brazil, India, Nigeria, South Africa)
are less developed than core nations but
more developed than peripheral nations.
They are the weaker members of
advanced regions or the leading members
of former colonial ones. Semi-peripheral
countries exploit peripheral countries, just
as core countries exploit both semiperipheral and peripheral countries.

The Peripheral Nations:

Peripheral countries (e.g., most African

countries and low income countries in
South America) are dependent on core
countries for capital and are less
industrialised and urbanised. Peripheral
countries are usually agrarian, have low
literacy rates and lack consistent Internet
access. Peripheral countries generally
provide labour and materials to core
countries.

Task
Complete

the Wallerstein
comprehension task.
Research: Complete a table outlining
each zone, giving examples of
exploitation. This will be useful for
revision.

Recap questions
Answer

the following questions:

How is WST theory different from
dependency?
Give an example of a country that
Wallerstein describes as semi-periphery
Give 2 characteristics of a semiperipheral country.

So what else is new?

So

in Franks dependency theory countries were

either core or peripheral. Now we know that
Wallerstein wanted to add in another tier to
describe those countries in the middle but he also
believed that unlike dependency
MWS (The Modern World System) is a dynamic
system which changes over time. Core nations
can become semi-periphery, and peripheral
nations can become semi-periphery its not
static like dependency theory.

So what else is new?

Wallersteins WST
Wallerstein

wanted to show that Dependency

theory, whilst true in stating that poor
countries are exploited, is wrong to argue that
just the Western states exploit the poor
nations.
Wallerstein argues that we should not just look
at individual states or TNCs as explanations
for inequality but we should be looking at the
whole capitalist system and how this exploits.
Does anyone here feel exploited?

What do we mean by
capitalist system
In

pairs, try to define what a capitalist

system is. Think about Marxism and
this view of the world, e.g. social class,
exploitation etc. (stretch and challenge)
You will need to go right back to SY1 for
this question. (synoptic)
15 minutes

Features of a capitalist
system:

Also known as the free market system, capitalism requires

unregulated supply and demand and little or no government
interference in matters of trade.

No modern nation operates this way because, in practice, the

system seldom works in an ideal fashion. Rather than increasing
supply and driving down the price of an in-demand product, for
example, a company may keep production levels low in order to
continue charging higher prices. (think iphone in gold) Nearly all
modern "capitalist" societies are actually mixed economies, with
government-controlled competition and labour policies in place
to help protect consumers, businesses, and workers.

Each individual is free to produce what he or she wants and to

sell it at whatever price the market will support.

Features of a capitalist
system:
The

modes of production are privately owned and

managed by individuals.

The

main motive behind the working of the

capitalist system is profit. The capitalist
system is always on the search for profit.

The search for profit and

exploitation.
Its

this search for profit that causes global

inequality.
The world is simply a market for goods and
labour
The division of population into different
economic classes, particularly capitalists and
workers (no matter where you are in the world)
We all think we are not paid for the actual
amount of work we do, we all feel exploited,
the world over!

So, Wallerstein is saying

We

are all exploited under capitalism

this search for profit.

But

do some nations benefit more than

others?

Under

capitalism who does the best?

Core, Semi-periphery or periphery?

Who wins in the capitalist

system?
The

core regions clearly benefit the most from

the capitalist system. Through extremely high
profits gained from international trade and from
an exchange of manufactured goods for raw
materials from the periphery (and, to a lesser
extent, from the semi-peripheries), the core
enriches itself at the expense of the peripheral
and semi-peripheral economies.
So, basically the Core nations are sitting pretty,
but is everyone in the core nations rich?

Do core nations win?

Well

no because in the core regions, many

inhabitants, increasingly landless and forced
to work as wage labourers, are seeing a
relative decline in their standard of living
and in the security of their income. (look at
us in recession, house prices, job losses,
zero-hour contracts etc.)
Remember the bourgeoisie dont want us
owning stuff, stuff = power
Life aint great for everyone!

Does the Periphery lose?

This MWS does not mean either that everybody in
the periphery has became poorer. In the periphery,
landlords for example often gained great wealth at
the expense of their underpaid coerced labourers,
since landowners were able to expropriate (steal)
most of the surplus (profits) of their workers for
themselves.
Overall, Wallerstein sees the development of the
capitalist world economy as detrimental to a large
proportion of the world's population.
There are bourgeoisie and proletariat in every
country and the capitalist system bad for most of
us!

What's Wallerstein on about

then?
Well,

he is saying that this capitalist system

is what exploits poor nations, not just the
individual states. dependency sees global
inequality as an Us vs Them deal,
Wallerstein sees exploitation and global
inequality as everyone vs capitalism deal.
He is also saying that not just those in the
Semi-periphery and Periphery are exploited,
those working class in the Core are also
exploited.

Dependency vs WST
The

theoretical structure for the dependency

theory is bimodal, consisting of the core and the
periphery; according to the world systems
theory the structure is trimodal and is comprised
of the core, the semiperiphery and the periphery
In terms of the direction of development, the
dependency school believes that the process is
generally harmful; however, in a world systems
scenario, there is the possibility for upward and
downward mobility in the world economy

So does WST explain global

inequality?
Yes:
Wallerstein

recognised that it was the

capitalist systems pursuit of profit
that has led to inequality in every
nation, not just the Periphery or Semiperiphery.
He also shows how the core and semiperipheral nations exploit the
periphery.

Yes:

He recognised, and was one of the first

to do so, how dependency is not a one
way process, there is inter-dependency
between the developing and western
world.
(E.g. economic crisis caused by debt can
ripple out and affect core nations
unemployment and destabilisation of
western currencies, this can cause
poverty and inequality in core nations)

So does WST explain global

inequality?
No: it has its criticisms:
The concepts core, semi-periphery and periphery are
vague and difficult to measure.
Its very economic, and doesnt consider that global
inequality can be the result of political, cultural or
social factors
It also ignores how inequality or poverty can be cause
by culture and traditional values (modernisation
theory)
It ignores the inequality in the periphery caused by the
kleptocracy of elites (much like dependency theory)

Examination question:

Evaluate the usefulness

of World Systems Theory
in explaining global
inequality. (30 marks) This
question came up in 2011.
How would you answer it?