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World-system

Socioeconomic system

  • 4 min read
  • 3 chapters

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Through System, Systems theory and Social structure

Characteristics

World-systems are defined by the existence of a division of labor. The modern world-system has a multi-state political structure (the interstate system) and therefore its division of labor is international division of labor. In the modern world-system, the division of labor consists of three zones according to the prevalence of profitable industries or activities: core, semiperiphery, and periphery. Countries tend to fall into one or another of these interdependent zones core countries, semi-periphery countries and the periphery countries. Resources are redistributed from the underdeveloped, typically raw materials-exporting, poor part of the world (the periphery) to developed, industrialized core.

World-systems, past world-systems and the modern world-system, have temporal features. Cyclical rhythms represent the short-term fluctuation of economy, while secular trends mean deeper long run tendencies, such as general economic growth or decline. The term contradiction means a general controversy in the system, usually concerning some short term vs. long term trade-offs. For example, the problem of underconsumption, wherein the drive-down of wages increases the profit for the capitalists on the short-run, but considering the long run, the decreasing of wages may have a crucially harmful effect by reducing the demand for the product. The last temporal feature is the crisis: a crisis occurs, if a constellation of circumstances brings about the end of the system.

The world-systems theory stresses that world-systems (and not nation states) should be the basic unit of social analysis. Thus, we should focus not on individual states, but on the relations between their groupings (core, semi-periphery, and periphery).

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