Capitalist World Economies

The world economy according to Wallerstein (1974) has been a single system, but in recent years it has appeared to be described as a core-periphery. This is an image that has been linked to the ongoing discussion on dependence. In other words, dependent world economies can be described as being periphery economies. Under-developed countries are referred to as peripheral capitalists. They are said to operate through economic laws and growth factors appear different from that classic capitalism. The core and periphery were not separate economies and had the same laws. They only had different sectors that performed different functions.

The semi-periphery emphasize on a single aspect of their role. However, they are at a disadvantage within the existing world system. Unfortunately, their role cannot be foregone since the system cannot function without being tri-modal.

The capitalist world economy requires a semi-peripheral sector. This is because of a primarily political reason and a politico-economic reason. The political reason happens to be straightforward and elementary. This is because a system based on rewards that are not equal must worry about the political rebellion of the oppressed elements. A polarized system characterized by high-income and low-income individuals ends up forming economic classes. These classes are likely to cause disintegration and struggle in a world economic system. To prevent the disintegration politically, the creation of a middle sector that believes to be better of than the lower sector and rather worse than the upper sector is done.

The world economic system needs a multiplicity of states to survive. This is because the absence of one political authority makes it hard for any individual to legislate the common will of the world system. This curtails the capitalist production mode. The other reason is that the existence of state machinery renders it impossible for the capitalists to organize the artificial restraints on the market operation.