World-systems theory is a standpoint in sociology and economics developed by eminent sociologist Immanuel Wallerstein during the 1970s. World-systems theory tries to elaborate the dynamics of the global economy by examining the historical development and ongoing operation of the capitalist world economy.
Core, Semi-Periphery, and Periphery:
Based on their economic activity, power, and distribution of income, the core, semi-periphery, and periphery are the three primary zones that make up our globe according to world-systems theory. The core nations—such as historically the United States, Western Europe, and Japan—have robust industrial bases, cutting-edge technology, and high incomes, making them economically powerful. Less developed nations make up the periphery, offering the core agricultural crops, cheap labour, and raw resources. States that are semi-peripheral are in the middle, displaying traits from both the core and the periphery.
Capitalist World-Economy:
Unequal Exchange:
The uneven distribution of power and income between core and periphery nations is highlighted by the world-systems theory. By taking use of peripheral nations’ cheap labour and resources, core nations are able to extract surplus value and preserve their economic supremacy through trade agreements that benefit the core.
Dependency and Underdevelopment:
In terms of markets, technology, and finance, peripheral states frequently rely on core nations. Peripheral regions may be unable to grow economically due to their reliance on low-cost labour or raw supplies, which might lead to continued underdevelopment in such areas.
Historical Development:
With a focus on historical processes, world-systems theory charts the evolution of the global economy from the emergence of capitalism and colonialism to the present. It admits that the current global economic order is a product of historical developments and the division of labor among nationalities.
Usman Khadim Kamboh