World system theory

World System Theory By Immanuel Wallerstein , explaining the core concept of world economic system.

1. Nauman ALi Presentation By

2. World System Theory By Immanuel Wallerstein Topic

3. What is a theory?

4. World system theory also known as world system analysis, developed by American sociologist Immanuel Wallerstein in 1976 which is an approach to World history and social change that suggests there is a World economic system in which some countries benefit while other are exploited. This Theory emphasizes the social structure of global inequality. World system theory

5. Core Periphery Semi Periphery world system Theory is established on three level hierarchy

6. Global division of world economy Core: countries engaged in banking, manufacturing, technologically advanced agriculture and shipbuilding. Democratic government, high wages, import raw materials and export, manufactures, high investments, welfare services. Periphery : provide Raw materials such as minerals and timber to fuel the core’s economic expansion. Unskilled labor is repressed and the peripheral countries are denied advanced technology that might make them more competitive. Non democratic governments, export raw materials, import manufactures, very low wages, no welfare services .

7. Semi periphery : involved in a mix of production activities some associated with core areas and other with peripheral areas. Authoritarian governments, export raw materials, low wages and low welfare services.

8. Core countries Peripheral countries Sami peripheral countries According to this theory world is divided in three types of countries

9. Core Developed countries Semi periphery Developing countries Periphery Underdeveloped countries Incorporate higher level of education, higher salaries and more technology Core processes generate more wealth in the world economy Places where core and periphery processes are both occurring Place that are exploited by the core but in turn exploit the periphery Incorporate lower levels of education, lower salaries and less technology periphery processes generate less wealth in the world economy

10. The core is the place where resources and wealth masses. The has high technological development and it creates complex technological products Core countries focus on higher skill, capital intensive production Core countries exploit peripheral countries Strong military power and not dependent on any one state or country and they are economically powerful Core countries are powerful and this power allows them to pay lower price for raw goods and exploit cheap labor Core countries

11. Periphery countries fall on the other end of the economic scale. Periphery countries are commonly also referred to as third world countries These countries lack a strong central government and may be controlled by other states. They have weak economic system and they depend on core countries and core countries exploit their raw goods, cheap labor. They also may have weak military power. Poverty, hunger, job deficiencies, corruption, poor leadership, depend on Aids Peripheral countries

12. Sami periphery countries fall in the middle of the economic spectrum. These countries share characteristic of both core and periphery countries. These are core regions in decline or periphery regions attempting to improve their economic position. These countries are sometimes exploited by core countries, but they also may exploit periphery countries themselves. Sami peripheral country adopt protectionist theory and they are most aggressive among three categories. They tend towards industrialization and more diversified economy but are not dominant in international system. They tend to export more to periphery and import more form core Sami periphery states can come into existence form developing peripheries Sami peripheral countries

13. Any questions ?

14. Thank you!