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Emergency Officer Essay

1174 words - 5 pages

Town and Country Planning
Moratuwa University

Introduction to Political Economy
Semester 3 Level 200

Handout 2: Theories of underdevelopment
Background to -Marxist theories of underdevelopment

1) Countries are not independent; economically related through trade
2) Colonialism introduced capitalist system;
3) Therefore, all the less developed countries are integrated into the world
capitalist system.
4) Developed world is responsible for the underdevelopment of third world
5) It is the integration with the world capitalist economy that makes these
countries poor.
6) Marxist theory can help us to understand this process of
Here, three theories are introduced under theories ...view middle of the document...

Economistic explanation: everything is an outcome of economic processes
Socialist countries can develop only by delinking with the capitalist
system, but capitalist system is fast becoming global
National autarky is seen as a solution.

World System theory: Immanuel Wallerstein (1974, 1980)
East Asian countries were growing they could no longer be described as
Oncoming crisis of the socialist countries; changes in China, eastern
Europe etc.
Major argument of world system theory: There is a world system which has
not only a core and a periphery, but also a semi-periphery.
Agreed to the ideas of unequal trade, exploitation of the periphery by the
core, existence of a world market
Capitalist system from 16th c, since colonialism.

Prepared by Dr. Nalani Hennayake, Department of Geography, University of Peradeniya October, 2010

Town and Country Planning
Moratuwa University

Introduction to Political Economy
Semester 3 Level 200

Needs to understand how the world system evolve in order to understand
how the core-periphery emerged.
External-internal factors argument that emerged with modernization theory
and dependency was solved here; it functions as a system no argument of
external factors
No two capitalisms such as core capitalism and peripheral capitalism but
one capitalist world system
Development and underdevelopment depends on the incorporation of the
countries into the capitalist world system
Underdevelopment due to unequal trade regimes
World system analysis required to understand any social change
countries develop or underdevelop in relation to this system.
they have a particular trajectory within the world economic system
In order to understand world system theory, one also needs to understand how the
world system came into being (evolution of the world economy) and the characteristic
features of the capitalist world economy

1) Evolution of the world economy (1979)

Evolution from mini systems to world systems

mini systems:
o Local societies; with a simple division of labor; within a single
cultural system (i.e. hunter-gatherer or primitive agricultural
systems); reciprocal-lineage mode

o Early in Europe there were world empires ( one common political
system); redistributive-tributary mode

World systems or world economies: Spatially extensive economic system;
with a single division of labor; with multiple cultural systems; where there
is no single political integration, but only a world economy; capitalist mode

For Wallerstein, Modern world-system is that which started in Europe
around 1450 and expanded to the whole world by about 1900.

Prepared by Dr. Nalani Hennayake, Department of...

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