Session 16 - Rise and Demise of Capitalism

Wallerstein’s world systems theory is definitely an interesting and thought provoking concept. He classifies states into three kinds in order to explain the extent to which states are dependent upon one another. Core states are well developed nations and examples include the USA and Britain, whereas periphery states are under developed, third world states such as Pakistan and Africa. A third tier of states is called the semi-periphery states. These states are in the process of developing and typically include the BRICS states – Brazil, Russia, India, China and South Africa. Furthermore, the core states exploit the periphery states by extracting their raw materials only to use them for manufactured goods which are sold at high prices in periphery states. The semi periphery states constitute the middle stratum which exploit periphery states and are exploited by the core states. Ultimately, the level of development of a state determines what kind it is. The fact that Wallerstein’s theory is sufficient to classify all states of the world into three categories can be appreciated.

Drawing from prior knowledge on this theory, Wallerstein’s theory explains how capitalism is actually sustained in the world system and cannot be replaced by socialism or communism. The proletariat of the core states is very different from the proletariat of the periphery states. The core states exploit the proletariat of the periphery states which in turn increases the living standards of their own proletariat. As a result, the core proletariat become pacified with the system and do not revolt against it. Thus, the two proletariat’s have nothing in common to unite them, which makes a socialist revolution very unlikely.