World System Theory

Background
Immanuel Wallestein has developed the best-known version of world-systems analysis, beginning in the 1970s. Wallerstein traces the rise of the capitalist world-economy from the "long" 16th century (c.
1450–1640). The rise of capitalism, in his view, was an accidental outcome of the protracted crisis of feudalism (c. 1290–1450). Europe (the West) used its advantages and gained control over most of the world economy and presided over the development and spread of industrialization and capitalist economy, indirectly resulting in unequal development.
Meaning of World System Theory
World system theory is a multidisciplinary, macroscale approach to world history and social change which emphasizes the world system(and not nation states) as the primary (but not exclusive ) unit of social analysis. World system theory has been examined by many political theorists and sociologist to explain the reason for the rise and fall of nations, income inequality, social unrest and imperialism.
For Wallestein , world system analysis is a mode of analysis that aims to transcend the structures knowledge inherited from the nineteenth century, the divisions within the social sciences, and those between the social sciences and history.
World system theory like dependency theory, suggests that wealthy countries benefits from other countries and exploit those countries citizen. In contrast to dependency theory, however, this model recognizes the minimal benefits that are enjoyed by low status countries in the world system. The theory originated by the sociologist Emmanuel Wallestein, who suggests that the way a country is integrated into the capitalist world system determines how economic development takes place in that country.
Characteristics of World System Theory
World system theory is a macro-scale approach to analyzing the world history of the mankind and social changes in different countries. The definition of the theory refers to the divisions of labor, be it inter-regionally or transnationally. According to Wallestein, the world economic system is divided into a hierarchy of three types of countries: core, semi-peripheral and peripheral.
(1) Core nations
Core nations apperas to be powerful, wealthy and highly independent of outside control. They are strong central government, controlling extensive bureaucracies and powerful militaries. Core countries eg US, Japan, Germany are dominant capitalist countries characterized by high level of industrialization and urbanization. Core countries are capital-intensive, have high wages and high technology production patterns and lower amount of labor exploitation and coercion. Core countries own most of the world's capital and technology and have great control over world trade and economic agreement. They are also the cultural centres which attracts artists and intellectual. Core countries extract raw material with low cost. They can also set the prices for the agricultural products.
(2) Peripheral nations
Peripheral nations are the nations that are the least economically developed. Peripheral countries eg most African countries and low income countries in South America are dependent on core countries for capital and are less industrialized and urbanized. One of the main reasons for their peripheral status in the high percentage of the uneducated people who can mainly provide cheap unskilled labor to the core nation. They have relatively weak government and have relatively weak institutions and have a small bourgeois and a large peasont classes. The wealthy in the peripheral countries benefits from the labor of poor workers and from their economic relations with core country capitalist.
(3) Semi-peripheral Nations
Semi-peripheral countries are less developed than core nations but more developed than peripheral nations. They are the weaker members of advanced regions or leading members from the former colonial ones. They tend to be countries moving towards industrialization and more diversified economies. They tend to export more to peripheral nations and import more from core nations. Example of semi-peripheral nations are South Korea, Taiwan, Mexico, Brazil, India, Nigeria, South Africa.
Assumption of World System Theory
The main assumptions of the world-systems theory are:
(a) There is a strong link between social sciences - especially among sociology, economics and political disciplines. This school recognizes that more attention is usually given to the individual development of each one of these disciplines rather than to the interaction among them and how these interactions affect in real terms the national conditions of a given society.
(b) Instead of addressing the analysis of each of the variables, it is necessary to study the reality of social systems.
(c) It is necessary to recognize the new character of the capitalist system.
Criticisms of World System Theory

(1) Specialization in low-tech production may produce profits in short term.
(2) The culturalists argue that world system theory puts too much importance on the economy and not enough on the culture.