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World Systems Theory

World Systems Theory. Kimberly Martin, Ph.D. Sociology 370. Capitalism. Based on industrialism and intensive agriculture Supply and Demand depends on continuous growth of production and consumer markets Ideology of materialism

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World Systems Theory

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  1. World Systems Theory Kimberly Martin, Ph.D. Sociology 370

  2. Capitalism • Based on industrialism and intensive agriculture • Supply and Demand depends on continuous growth of production and consumer markets • Ideology of materialism • Those who own capital can make increasingly large profits thru mechanization • These profits depend on having consumers to buy • Capitalists share profit by larger wages and middle class grows, democracy develops • Rising wages mean less profit • Capitalists seek cheaper resources and labor in other countries • Dependent countries are drained of resources • Dependent countries want a share of the standard of living, but cannot afford to get the “stuff”

  3. World Systems Theory • There is a single world economy • There are three types of countries in the WSYS: 1. Core – dominant modern industrialized capitalist countries with large multinational corporations 2. Peripheral – dependent countries that are preindustrialized and export natural resources and labor 3. Semi-peripheral – countries with an upper class that is industrialized and the remainder of the population is preindustrialized • It is extremely difficult to move up in the world system.

  4. Core Countries Imperialist in one of two ways: 1. Colonialism – control of dependent societies by force 2. Neocolonialism – control through multinational corporations and economic, economic aid and “puppet governments”

  5. Hegemony • Core countries that become the dominant force in the WSYS are called hegemons and their control is called hegemony • Three hegemons in the history of the WSYS: The Netherlands, The British and the U.S. • U.S. hegemony peaked in the 1970s and we are on the way down • It is not clear whether there will be a new hegemon, or whether power will be shared in the WSYS in the future

  6. The End of Hegemony? What happens to end the reign of a hegemon? • Environmental degradation • Expense of maintaining hegemony (wages, standard of living, military) • Competition between Core countries for hegemonic superiority • Resentment on the part of dependent (peripheral and semi-peripheral) societies at their inability to attain Core lifestyle

  7. The End of Growth • Resources are depleted • We are currently using at 125% of the earth’s ability to replenish resources. • There will be a steady decrease in jobs over time. • Steady state economy? • Green economy? • Socially responsible industry?

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