key term - World-Systems Theory

Definition

World-systems theory is a macrosociological perspective that analyzes the global economy as an integrated system of core, semi-periphery, and peripheral regions that are hierarchically organized and interdependent. It examines how this global economic system shapes patterns of inequality, development, and social change across different countries and regions.

5 Must Know Facts For Your Next Test

1. World-systems theory was developed by sociologist Immanuel Wallerstein in the 1970s as a critique of modernization theory and dependency theory.
2. The theory posits that the global capitalist system is characterized by an unequal division of labor and power, with core countries exploiting peripheral countries for their resources and cheap labor.
3. Core regions are able to maintain their economic dominance by controlling the terms of trade, technology, and financial flows within the global system.
4. Peripheral regions are often trapped in a cycle of underdevelopment, as they are forced to specialize in the production of raw materials and low-value-added goods for the core.
5. Semi-peripheral regions play an intermediary role, serving as both exploiters of peripheral regions and the exploited by core regions.

Review Questions

• Explain how the world-systems theory conceptualizes the global economy and its impact on patterns of inequality and development.
  • According to the world-systems theory, the global economy is organized into a hierarchical system of core, semi-peripheral, and peripheral regions. Core regions, such as the United States and Western Europe, dominate the global economy and exploit the resources and labor of peripheral regions, which remain underdeveloped. Semi-peripheral regions, like China or Brazil, serve as intermediaries, both exploiting peripheral regions and being exploited by core regions. This unequal division of labor and power within the global system perpetuates patterns of inequality and uneven development, with core countries accumulating wealth and power at the expense of peripheral countries.
• Analyze how the world-systems theory's conceptualization of the global economy differs from other theoretical perspectives, such as modernization theory and dependency theory.
  • The world-systems theory departs from modernization theory, which views development as a linear process in which all countries can eventually achieve the level of economic and social progress seen in the West. Instead, the world-systems theory sees the global economy as a zero-sum game, where the development of core countries comes at the expense of peripheral countries. Unlike dependency theory, which focuses on the unequal relationship between individual countries, the world-systems theory takes a more holistic, macrosociological approach, analyzing the global economy as an integrated system with a hierarchical structure and unequal power dynamics. This allows the world-systems theory to better explain the persistence of global inequality and the challenges faced by peripheral countries in achieving sustainable development.
• Evaluate the extent to which the world-systems theory can explain contemporary patterns of globalization and their impact on social, economic, and political outcomes in different regions of the world.
  • The world-systems theory remains highly relevant in understanding the dynamics of contemporary globalization. As the global economy has become increasingly interconnected, the theory's emphasis on the unequal division of labor and power between core, semi-peripheral, and peripheral regions has proven useful in analyzing the persistence of global inequality, the exploitation of developing countries by multinational corporations, and the challenges faced by peripheral regions in achieving sustainable development. However, critics argue that the theory oversimplifies the complexity of the global economy and fails to account for the agency of individual actors and the potential for peripheral regions to challenge their subordinate position within the system. Additionally, the rise of new economic powers, such as China, has complicated the traditional core-periphery dichotomy, suggesting the need for more nuanced and dynamic models of global economic relations.

Related terms

Core Regions: Highly industrialized and economically dominant countries that control the global economy and exploit peripheral regions for their resources and labor.

Peripheral Regions: Economically dependent countries that provide raw materials, cheap labor, and a market for core countries' manufactured goods, often remaining underdeveloped.

Semi-Peripheral Regions: Countries that are in between the core and peripheral regions, serving as both exploiters and the exploited within the global economic system.