The world systems theory, developed by sociologist Immanuel Wallerstein, is an approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited. Just like we cannot understand an individual's behavior without reference to their surroundings, experiences, and culture, a nation's economic system cannot be understood without reference to the world system of which they are a part.
The main characteristics of this theory, which will be discussed in more detail throughout the lesson, are:
The world systems theory is established on a three-level hierarchy consisting of core, periphery, and semi-periphery areas.
The core countries dominate and exploit the peripheral countries for labor and raw materials.
The peripheral countries are dependent on core countries for capital.
The semi-peripheral countries share characteristics of both core and peripheral countries.
This theory emphasizes the social structure of global inequality.