Is capitalism indicative of the end of history? Wallerstein’s World-system theory envisions the advent of a socialist world-government, the only form of world-system which can maintain high economic and productive growth. His theory seeks to explain the dynamics of capitalist world economy and the eventual demise of the system. He developed the World-system theory as an alternative to the modernization theory.
According to his theory, only one world-system exists in which different regions are connected through a network of exchange associations. Capitalism exemplifies the development and continuous economic growth and is the dominant economic system of exchange; it is built upon the international division of labor which categorizes the world into three regions: core (most beneficial, high levels of development, technologically advanced, strong central governments and extensive bureaucracies), semi-periphery (buffer, declining core regions or improving peripheries) and periphery (absence of central government, export raw material to core). An unequal trade relation exists between core and periphery.
Andre Gunder Frank, a dependency model theorist, discusses how this unequal trade relationship and skewed development is a consequence of the capitalist economic system which causes the ‘development of the underdevelopment’. The satellite (periphery) under develops at the hands of the metropolis’s (core) devlopment. One of his interesting hypothesis is regarding the status of the satellite; the most underdeveloped regions have a close tie with the metropolis, whereas those regions have developed greater who do not have a close affinity with the metropolis. The exploitation and underdevelopment of the satellite at the hands of the metropolis results in the development of the metropolis.
Have we reached a point in history where the capitalist system will self-destruct? Wallerstein is of a similar opinion to that of Marx, the capitalist system is self-destructive because of the inherent contradictions within capitalism as pointed out by Marx. He sums up Marxian idea by stating: “whereas in the short-run the maximization of profit requires maximizing the withdrawal of surplus from immediate consumption of the majority, in the long-run the continued production of surplus requires a mass demand which can only be created by redistributing the surplus withdrawn” (1974, 414).
Frank, Andre Gunder. The development of underdevelopment. Boston, MA: New England Free Press, 1966.
According to his theory, only one world-system exists in which different regions are connected through a network of exchange associations. Capitalism exemplifies the development and continuous economic growth and is the dominant economic system of exchange; it is built upon the international division of labor which categorizes the world into three regions: core (most beneficial, high levels of development, technologically advanced, strong central governments and extensive bureaucracies), semi-periphery (buffer, declining core regions or improving peripheries) and periphery (absence of central government, export raw material to core). An unequal trade relation exists between core and periphery.
Andre Gunder Frank, a dependency model theorist, discusses how this unequal trade relationship and skewed development is a consequence of the capitalist economic system which causes the ‘development of the underdevelopment’. The satellite (periphery) under develops at the hands of the metropolis’s (core) devlopment. One of his interesting hypothesis is regarding the status of the satellite; the most underdeveloped regions have a close tie with the metropolis, whereas those regions have developed greater who do not have a close affinity with the metropolis. The exploitation and underdevelopment of the satellite at the hands of the metropolis results in the development of the metropolis.
Have we reached a point in history where the capitalist system will self-destruct? Wallerstein is of a similar opinion to that of Marx, the capitalist system is self-destructive because of the inherent contradictions within capitalism as pointed out by Marx. He sums up Marxian idea by stating: “whereas in the short-run the maximization of profit requires maximizing the withdrawal of surplus from immediate consumption of the majority, in the long-run the continued production of surplus requires a mass demand which can only be created by redistributing the surplus withdrawn” (1974, 414).
Frank, Andre Gunder. The development of underdevelopment. Boston, MA: New England Free Press, 1966.
Good post and the final quote hits the nail on the head. How can capitalism survive if the masses don't have the resources to continue to consume?
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