World System Theory Essay Example

called world System analysis. Even if nations make economic advance, they remain weak and subservient to the core nations as they depend on their assistance. Another important point here is that there is a stable relation between the different categories of the nations. It is quite challenging to move from one categories to another one. Specially moving from the periphery nations to semi periphery nations is quite difficult.

Next is the Dependency Theory which says that the international system is exploitative and there is dominance of some countries over other.They argue that there are different kind of states which performs differently. First is the Center of the center (CC) which are the most powerful of the nations like USA, UK. Then Periphery of the center (PC) like Canada which are modern and industrialized but have a little less global power. Next is Center of the Periphery (CP) which are still developing but have a fair amount of wealth. The last one is Periphery of the Periphery (PP) includes Cambodia which are not even on the path of development.

This distinction of the countries is due to the following main points:1. International division of labor between all of these countries - The core countries dominate in terms of technology. The PP are like resource extraction economies providing cheap labor. The structure is PC serve CC, CP serves CP ad CC, PP serves everybody else.2. Class distinction - There is a clear division in rich and working class and is same for each of the countries.

They cooperate with one another to ensure they remain in power to keep the system the way it is.3. Global Capitalism –

According to this all structures exist within the wider global system. In this system, liberal economic theory trades in interest of core countries. Banks, international institutions, media serve interest of richest countries. This entire system serves the interest of the wealthy.

They do not promote equal distribution, rather promote dominance and dependency.Now the major drawback of following these system is that it is not sustainable. When the global economy becomes urbanized, then the cost of production will go up as there will be no cheap labor and the natural resources will be exhausted once the saturation point is reached.To be sustainable, the Core countries should also develop the other nations by being equal in the terms of trade and therefore give them a chance to grow rather than trap them in the circle of poverty.