World Systems Theory views the global economy as consisting of three types of countries: core countries that are dominant industrial powers; peripheral countries that are dependent and export resources and labor; and semi-peripheral countries with some industry and dependence. Core countries maintain control over peripheral countries through colonialism, neocolonialism, and multinational corporations. The dominant core power is called the hegemon, with the Netherlands, Britain and the US historically filling this role. However, hegemony declines as the costs rise, other core countries compete, and resentment grows in dependent countries unable to achieve the core's standard of living. The current model of continuous growth also faces challenges from resource depletion.

1. World Systems Theory
Kimberly Martin, Ph.D.
Sociology 370

2. Capitalism
• Based on industrialism and intensive agriculture
• Supply and Demand depends on continuous growth of production
and consumer markets
• Ideology of materialism
• Those who own capital can make increasingly large profits thru
mechanization
• These profits depend on having consumers to buy
• Capitalists share profit by larger wages and middle class grows,
democracy develops
• Rising wages mean less profit
• Capitalists seek cheaper resources and labor in other countries
• Dependent countries are drained of resources
• Dependent countries want a share of the standard of living, but
cannot afford to get the “stuff”

3. World Systems Theory
• There is a single world economy
• There are three types of countries in the WSYS:
1. Core – dominant modern industrialized capitalist countries
with large multinational corporations
2. Peripheral – dependent countries that are
preindustrialized and export natural resources and labor
3. Semi-peripheral – countries with an upper class that is
industrialized and the remainder of the population is
preindustrialized
• It is extremely difficult to move up in the world system.

4. Core Countries
Imperialist in one of two ways:
1. Colonialism – control of dependent societies
by force
2. Neocolonialism – control through
multinational corporations and economic,
economic aid and “puppet governments”

5. Hegemony
• Core countries that become the dominant force in
the WSYS are called hegemons and their control is
called hegemony
• Three hegemons in the history of the WSYS: The
Netherlands, The British and the U.S.
• U.S. hegemony peaked in the 1970s and we are on
the way down
• It is not clear whether there will be a new hegemon,
or whether power will be shared in the WSYS in the
future

6. The End of Hegemony?
What happens to end the reign of a hegemon?
• Environmental degradation
• Expense of maintaining hegemony (wages, standard
of living, military)
• Competition between Core countries for hegemonic
superiority
• Resentment on the part of dependent (peripheral
and semi-peripheral) societies at their inability to
attain Core lifestyle

7. The End of Growth
• Resources are depleted
• We are currently using at 125% of the
earth’s ability to replenish resources.
• There will be a steady decrease in jobs
over time.
• Steady state economy?
• Green economy?
• Socially responsible industry?