Modern World-System Theory

by

Jannis Mossmann

2007

Table of contents

0. Introduction 2

1. Theoretical Argument 3

Capitalist Mode of Production 3

2. Advantages 7

3. Disadvantages 9

References 12

0. Introduction

Immanuel Wallerstein′s Modern World-System theory is a structural approach to analyse social change. In response to the liberal theory, which differentiated three social spheres (the market, the state, and the civil society) operating according to different logics, Modern World-System theory states that politics and economics cannot be viewed as distinct social spheres, they are two interrelated fields of study (Wallerstein, 2004). Wallerstein sees underdevelopment and development, the status of states in our "globalized" world today, not in the responsibility within the countries themselves, but as a consequence of historical capitalism and the interstate system. Thereby, he regards internal and external factors which describe why the world is how it is today.

This essay will give a short overview about the Modern World-System theory and clarify why the pursuit of profits and power are one and markets are politically structured and maintained. Afterwards, I state the advantages and the disadvantages of Modern World-System theory and finish with a conclusion.

1. Theoretical Argument

Modern World-System theory is a historical approach which describes the last five centuries by a specific single, growing world-system (Shannon). This world-system, separate from a world-empire or a socialist system, represents the structure in which almost every country is integrated today. It is characterized by a capitalist world-economy including a single division of labor but multiple polities and cultures (interstate system). Both, the modern world-economy and the interstate systems follow "one logic", the ceaseless capital accumulation (Sanderson, 2005). This universal mode of production is not deterministic but it determines the variety of action for political entities. "The interstate system is the political side of capitalism, not an analytically autonomous system, and its survival is dependent on the operation of the institutions which are associated with the capital-accumulation process" (Chase-Dunn). But, the capitalist world-economy needs interstate competition to go on. A single world-empire could destroy the capitalist class because it would not be based on markets in which exchange occurs on the basis of competition. According to Polanyi a world-empire is a redistributive form of organization which overrides the interest of a capitalist class. "The state, and the system of competing states which compose the world policy, constitute the basic structural support for capitalist production relations." (Chase-Dunn).

Capitalist Mode of Production
Capitalism as a mode of production gives priority to the endless accumulation of capital. A product will be only produced if it brings more money on the market as its production costs have been. The capitalist always wants to get the highest profit out of its product, what is called surplus value. According to Chase-Dunn this "capitalist mode of production exhibits a single logic in which both political-military power and the appropriation of surplus value through production and sale on the world market play an integrated role.

" A state in the capitalist world-system can only be successful if it combines effective state power and a competitive advantage in production. It has to respond to the imperative of the endless accumulation of capital which generates a "need for constant technological change, a constant expansion of frontiers - geographical, psychological, intellectual, scientific." (Wallerstein, 2004) Furthermore, the capitalist nature to exploit labor by the owners of the means of production to gain a high surplus-value leads to a struggle between the working-class and the capitalists which the state has to compensate. So, sovereign states set conditions for the capitalist entrepreneurs when they regulate the relationship between capitalists and workers. Furthermore, states create the rules concerning property rights within their states. They can decide, which parts of the economy are regulated and to what degree.

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