World Systems Theory

WORLD SYSTEMS THEORY

Richard K. Mijokovich

Global Economy / ECO 615

12 MAY 2014

Professor: Dr. Sam Ojo

There are different theories that relate to the global economy. One of these theories is the world systems theory, which was developed by Wallerstein. This theory acts as a model that describes all the changes that resulted in shaping the world into what it is today. Its focus is specifically on the changes that took place in Western Europe a few centuries ago during a period of significant economic development. The world systems theory saw the division of the world into some three parts, which are the core, the semi-periphery, and the periphery. The core mainly comprised those countries that were economically developed as the United States, countries from Western Europe, and Japan. The semi-periphery included those countries from Asia that were less developed while the periphery included those countries that were very rich in resources, but very poor and highly underdeveloped. These countries were mainly from Africa and Latin America (Frank, 2001). The world systems theory takes a Marxian approach in understanding the lack of development particularly in Latin America and Africa. This theory is materialist as it oversees politically and cultural, the collective and religious characteristics of the country all determined by the economy and it is an analysis of the system because all is perceived as one organization. The world systems theory is an analysis of capitalism and thus it finds its origination in the Annales School and the dependency theories. This theory was developed at a time when there was a principal approach in understanding development; theory of modernization (Maxwell & Joseph, 2005). The theory was under attack from many fronts. Wallerstein aimed at realizing a clear and theoretical break with the theories of modernization, with the purpose of providing a new hypothetical paradigm to guide the investigations into the appearance and...