Theories of development: world systems theory

World Systems Theory

Developed by Immanuel Wallerstein, World Systems Theory (WST) is a perspective that seeks to understand the dynamics of the global economic system.

Understanding WST

WST argues that societies are part of a larger, interconnected network known as a ‘world-system’, where societies are classified into core, semi-periphery and periphery countries.
Core countries, typically developed nations such as the US and UK, are dominant capital-intensive economies that exploit the periphery for cheap labour and resources.
Semi-periphery countries, like Brazil and India, are in a middle-ground position. They exploit periphery countries and are exploited by core countries.
Periphery countries, often developing nations, are exploited for their cheap labor and raw materials. They suffer from lack of industrialisation and have dependent economies.

Key Ideas

In WST, global inequality is seen as an inherent feature of the capitalist world system and core nations benefit from the exploitation of peripheral nations.
The constant cycle of exploitation and dependency leaves periphery nations struggling to develop, maintaining global inequality.
Change in this system can happen if new countries rise to the position of dominance or existing core countries decline.

Criticisms of WST

It overemphasises the economic aspects neglecting other factors such as culture, history, and domestic policies that also contribute to global inequality.
It is critiqued for its overly deterministic view, suggesting nations are merely passive recipients in global trade relations.
Not all development in periphery countries can be attributed to exploitation by core countries. Some countries have developed through their own means and strategies, which WST fails to acknowledge.

Application

WST can be used to explain economic disparities between countries and the influence of globalisation on less developed countries.
It can help understand why some countries remain poor and others become wealthier, contributing to the dialogue on economic inequality and underdevelopment.