Wallerstein's world system theory is a macro-scale approach to world history and social change that highlights the world-system as the primary unit of social analysis. Born after the dependency theory, it seems to be an expanded version of the dependency theory. In other words, this theory also reveals the gap between rich and poor countries. Social scientists often use this theory to explain the reasons for the rise and fall of states, income inequality, social unrest, and imperialism. Mainly, this theory emphasizes the social structure of global inequality.
According to this theory, the world is divided into core, periphery, and semi-periphery. Core countries are dominant capitalist nations that exploit peripheral countries for labor and raw materials. They possess strong military and economic power and are not dependent on other countries. This is why they pay lower prices for raw materials and labor, which demonstrates unequal relations between core and peripheral countries.
1. Core countries: Dominant capitalists, rich, socially and colonially powerful, not dependent on others, exploit peripheral countries. Examples include Germany, USA and England.
2. Semi-periphery countries: In some ways, they share characteristics of both core and peripheral countries. Examples are India, China, and Brazil.
3. Periphery countries: Poor, dependent on core countries for capital, exploited from both sides, lack strong governance, export raw materials to core countries, experience deindustrialization, cheap labor; also known as third-world countries. Examples include Bangladesh, Central Africa, and Afghanistan.
According to factors such as military actions, geographic expansion, and changes in industrial production levels of a country, the country's status in the world system is always changing. For example, the status of semi-peripheral countries may be less stable (changing rapidly according to shifts in the world economy) compared to peripheral countries.
Overall, the exploration of Wallerstein's World System Theory unravels a comprehensive lens through which to analyze global dynamics. This theory's classification of countries into core, periphery, and semi-periphery highlights the intricate web of exploitation and power dynamics that influence international relations. By understanding the ever-shifting statuses of nations within this framework, we gain deeper insights into the complex mechanisms that shape our interconnected world.
