World-systems theory and global economic inequality

¶ … Globalization plays a major role in the economy and sociology today. It is important to understand what globalization is, how the world-systems theory explains inequalities between different parts of the world, and what is meant by core, semiperiphery and periphery. It is also important to understand the relevance of the history of European colonialism.

Defining Globalization

Globalization "describes the increased mobility of goods, services, labor, technology and capital throughout the world. Although globalization is not a new development, its pace has increased with the advent of new technologies, especially in the area of telecommunications (www.canadianeconomy.gc.ca/english/economy/globalization.html)."

The Core, Semiperiphery, and Periphery

The countries which are the core regions have "benefited the most from the capitalist world economy (www.fordham.edu/halsall/mod/wallerstein.html)." The regions that are in the peripheral zones are economic opposites of the core. They "lack strong central governments or are controlled by other states, export raw materials to the core, and rely on coercive labor practices. The core expropriates much of the capital surplus generated by the periphery through unequal trade relations (www.fordham.edu/halsall/mod/wallerstein.html)." In the middle of these two economic levels is the semi-periphery. These regions "represent either core regions in decline or peripheries attempting to improve their relative position in the world economic system. The often also serve as buffers between the core and the peripheries (www.fordham.edu/halsall/mod/wallerstein.html)."

A study concerning democracy and economic development of 138 countries between 1972 and 1992 showed that "for developing countries (periphery) and newly industrializing countries (semiperiphery), economic development has a significant effect on democratic performance, yet in an opposite direction. Economic development actually leads to lower levels of democracy for these countries, although it was initially thought that any effect of economic conditions on democratic performance would be positive (Norris)." Modern economists originally believed that "economic and (and social) development gives rise to a political culture more favorable to social peace, however the studies suggest the opposite occurs in reality due to the conflicts in society and politics that do not diminish through modernization but are usually sorely aggravated (Norris)."

History of European Colonialism

The history of European Colonialism is relevant in understanding globalization since it can provide such important lessons for today's economy as:

"Superexploitation of labor on the periphery of the world capitalist economy leads to increased exploitation of workers at the core.

Squandering a bonanza, be it gold and silver as before or cheap petroleum and other natural resources now, on luxury imports, skewed development, and military buildups can leave an economy worse off after the bubble bursts than before.

Imperial overreach is as much a threat to today's number-one power, the United States, as it was to once-mighty but now second-rank Spain. Expanding global investments, interests, and commitments beyond a nation's ability to protect them against real and imagined enemies carries the seeds of self-destruction (www.uwec.edu/Geography/Ivogeler/w111/gold.htm)."

Conclusion

Globalization plays an important economic role in countries today. It is hoped that by understanding the history of colonialism and what part the worlds-system theory plays in globalization, countries will learn from past mistakes and will work together for the good of all.