Question

1. What is dependency theory and world system theory? Is dependency theory rooted with which of the following theories?

- conflict theory
- structural functionalist theory

2. Give examples of core countries, periphery countries, and semi-periphery countries

Answer 1

Question:1. What is dependency theory and world system theory? Is dependency theory rooted with which of the following theories: conflict theory and structural functionalist theory?

Introduction

The main objective of this document is to synthesize the main aspects of the four major theories of development: modernization, dependency, worldsystems and globalization. These are the principal theoretical explanations to interpret development efforts carried out especially in the developing countries.  

These theoretical perspectives allow us not only to clarify concepts, to set them  in economic and social perspectives, but also to identify recommendations in terms of social policies.

This utilization of natural resources is based on a technology, which respects the cultural features of the population of a given country. This general definition of development includes the specification that social groups have access to organizations, basic services such as education, housing, health services, and nutrition, and above all else, that their cultures and traditions are respected within the social framework of a particular country.

In economic terms, the aforementioned definition indicates that for the population of a country, there are employment opportunities, satisfaction -at least- of basic needs, and the achievement of a positive rate of distribution and redistribution of national wealth. In a political sense this definition emphasizes that governmental systems have legitimacy not only in terms of the law, but also in terms of providing social benefits for the majority of the population.

Dependency theory

Dependency theory is the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. It is a central contention of dependency theory that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system".

The theory arose as a reaction to modernization theory, an earlier theory of development which held that all societies progress through similar stages of development, that today's underdeveloped areas are thus in a similar situation to that of today's developed areas at some time in the past, and that, therefore, the task of helping the underdeveloped areas out of poverty is to accelerate them along this supposed common path of development, by various means such as investment, technology transfers, and closer integration into the world market.

Dependency theory rejected this view, arguing that underdeveloped countries are not merely primitive versions of developed countries, but have unique features and structures of their own; and, importantly, are in the situation of being the weaker members in a world market economy.

Dependency theory no longer has many proponents as an overall theory, but some writers have argued for its continuing relevance as a conceptual orientation to the global division of wealth.

Dependency theory is rooted with structural functionalist theory.

World Systems Theory

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.

2. Give examples of core countries, periphery countries, and semi-periphery countries

Core Countries

According to the world systems theory, the world is divided into three types of countries or areas: core, periphery, and semi-periphery.

Core countries are dominant capitalist countries that exploit peripheral countries for labor and raw materials. They are strong in military power and not dependent on any one state or country. They serve the interests of the economically powerful. They are focused on higher skill and capital-intensive production.

Core countries are powerful, and this power allows them to pay lower prices for raw goods and exploit cheap labor, which constantly reinforces the unequal status between core and peripheral countries.

The first core region was located in northwestern Europe and made up of England, France, and Holland. Today, the United States is an example of a core country. The U.S. has large amounts of capital, and its labor forces are relatively well paid.

Periphery Countries

Periphery countries fall on the other end of the economic scale. These countries lack a strong central government and may be controlled by other states.

These countries export raw materials to the core countries, and they are dependent on core countries for capital and have underdeveloped industry. These countries also have low-skill, labor-intensive production, or, in other words, cheap labor. Periphery countries are commonly also referred to as third-world countries.

Eastern Europe and Latin America were the first peripheral zones. An example from today is Cape Verde, a chain of islands off the west coast of Africa. Foreign investors promote the extraction of raw materials and the production of cash crops, which are all exported to core countries.

In world-systems theory, the semi-periphery countries (sometimes referred to as just the semi-periphery) are the industrializing, mostly capitalistcountries which are positioned between the periphery and core countries. Semi-periphery countries have organizational characteristics of both core countries and periphery countries and are often geographically located between core and peripheral regions as well as between two or more competing core regions. Semi-periphery regions play a major role in mediating economic, political, and social activities that link core and peripheral areas.

These regions allow for the possibility of innovative technology, reforms in social and organizational structure, and dominance over peripheral nations.^[1] These changes can lead to a semi-periphery country being promoted to a core nation. Semi-periphery is, however, more than a description, as it also serves as a position within the world hierarchy in which social and economic change can be interpreted.

World-systems theory describes the semi-periphery as a key structural element in the world economy. The semi-periphery plays a vital role comparative to that of the role that Spain and Portugal played in the seventeenth and eighteenth centuries as intermediate trading groups within the European colonial empire.

Today, the semi-periphery is generally industrialized. Semi-peripheral countries contribute to the manufacturing and exportation of a variety of goods.

They are marked by above average land mass, as exemplified by Argentina, China, India, Brazil, Mexico, Indonesia, and Iran.

More land mass typically means an increased market size and share. Semi-peripheral nations are not all large though, as smaller countries such as Israel, Poland, and Greece exist within the semi-periphery

Semi-periphery countries fall in the middle of the economic spectrum. These countries share characteristics of both core and periphery countries. These are core regions in decline or periphery regions attempting to improve their economic position. These countries are sometimes exploited by core countries, but they also may exploit periphery countries themselves. For example, India is largely dependent on core countries for capital, but India has a growing technology industry and an emerging consumer market.