World Systems Theory

Immanuel Wallerstein

Done by David Bromfield and Kyle Carter

Immanuel Wallerstein, an American who became an Africanist scholar, introduced this school
of development thought in the 1970s and over time Frank, Amin and Cardoso adopted it as a
natural extension of dependency theorising. World Systems Theory grew out of two major
premises of dependency – the unequal exchange between nations as an outcome of capitalist
relations and, the core-periphery model of exploitation. It differs from and extends
dependency theory in that the unit of analysis is not the nation state but a historical, systemic
perspective of global capitalism where social classes in the world are divided largely into an
exploitative relationship between core and periphery.
More about Wallerstein

Wallerstein believed that the modernization theory, and other such models were the product
of nineteenth century ways of thinking that believed in compartmentalizing knowledge. Which
meant that such an approach could only look at the problems of development and
underdevelopment through the lens of either developmental economics or political science.

What Wallerstein proposed instead was a unified system approach that did not limit itself to
any one subject or approach for analyzing global issues but combined the spheres of society,
economy, and politics.
Progression of Wallerstein

Wallerstein analysed the workings of this system in terms of Marxist principles – that the
basic framework to understand the relationship between groups was to focus on conflict over
material resources, and that the centre of all the conflict stemmed from the processes of
capital accumulation. Thus, long before the term globalisation became popular, Wallerstein
identified the historical processes and effects of global capital as major factors affecting the
development potential of small states.
Wallerstein categorised countries as core, periphery and semi-periphery.

Core: The group of countries that has economic hegemony over all other countries. They
exploit the resources and labor of Periphery countries and are themselves exploited by no
other countries. Semi-Periphery: Countries exploited by the Core but able to exploit the
Periphery. Periphery: The group of relatively poor countries that are exploited by the Core
and Semi-Periphery, and are themselves unable to exploit other nations—the lowest rung on
the ladder.

NB: the global divisions that define world systems theory are very similar, in their own way, to
the socioeconomic classes conceived by Karl Marx (namely, the proletariat and the
bourgeoisie).
Countries could move up or down so it was a dynamic system. For example:

■ Portugal was once a core power that is considered today to be in the semi-periphery.

■ Semi-periphery countries of the 19th century such as Australia and New Zealand are today
among core nations.

■ The semi-periphery today includes those developing countries which are integrating well
into the economic and financial system of the world economic system and those countries
which were previously in the core but are now on a downward slide such as Eastern Europe.
The Core, Semi-Periphery, and Periphery are roughly analogous to our socioeconomic
concepts of "developed," "developing," and "least-developed," but the important thing to
remember is that world systems theory prioritizes economic dominance over any other factor
and is a way of discussing spatial variations in economic development.

The flow of resources and labor from the Periphery enables the Core—the countries that make
up the world's economic ruling class—to use those resources to create desirable (or even
necessary) consumer goods that can be sold to consumers in the Core, Semi-Periphery, and
Periphery. The Core countries can then develop wealthy economies, stable governments, and
powerful militaries, allowing the Core to retain its hegemony.
Semi-periphery countries play a role in deepening the web of capitalist relationships. They
exploit the countries of the periphery and thereby serve to solidify the world systems
hierarchy. Brazil with its large area, population and resources is one of these, as is Mexico.
Countries with a great deal of mineral wealth, such as Iran and South Africa, have also become
part of the semi-periphery. A development strategy – industrialisation by invitation - sought
to persuade foreign capital to invest directly, using local labour and favourable tax conditions.
Caribbean countries tried this strategy in the 1970s in their quest to move out of
underdevelopment
Wallerstein and his colleagues believed that the semi-periphery could advance if such countries were
first able to substantially build their economies under a state of dependent development but then to
strategically move towards more egalitarian and indigenous ways of developing. It is difficult to know
exactly though when to begin to withdraw from the world system, as Cardoso found out in the case of
Brazil. Some countries that have tried to move away from being enmeshed in exploitative relations
with the core – for example, Guyana (co-operative socialism) and Tanzania (ujamma socialism)
–remain today countries of the periphery.

Wallerstein departed from Marx’s linear view of history by posing cycles of economic development. He
also incorporated concepts from history, sociology, economics and politics to produce a holistic theory
of development that sought to capture reality better than reliance on one discipline such as human
capital (economics) or modernisation theory (sociology).
Criticisms of World Systems theory

Wallerstein’s deduction that the rise of capitalism occurred at the same time as the emergence
of the world system (around the 16th century) is too simple.

Historically the early growth of core countries occurred before their relationships with the
periphery, so that exploitation of the periphery was not responsible for their initial growth.

The unit of analysis does not recognise that nation states’ development can be traced to
internal cultural factors as well as to economic ones, e.g. the case of postwar Germany and
Japan. ( too little emphasis on the autonomy of individual countries.)

Its nature is Eurocentric, especially in conceptualising a theory of a world system based on the
fortunes of the British Empire. The theory negates agency or the will of individuals to act from
their own concrete interests; everything is explained in terms of the system or the market.
Key Takeaways from the World Systems Theory

● World Systems Theory is a view of the world in which countries are placed into different
economic "classes" to explain their economic relationships with one another.
● These classes include Core, Semi-Periphery, and Periphery. Countries in the Core are able
to economically exploit other countries without being exploited themselves
● World Systems Theory was constructed by Immanuel Wallerstein, who first defined it in
1974.
● World Systems Theory has been criticized for downplaying the role of culture in the
establishment of global hegemonies.