Presentation on theme: "World System Theory: Why does global economic development favour Advanced Industrialized Countries (AICs)?"— Presentation transcript:
1 World System Theory:Why does global economic development favour Advanced Industrialized Countries (AICs)?
2 Structure of the World System& the Organizations that maintain the systemG 8IMFG 20World BankG 10WTO
3 G8 countries are major industrial economies G8 countries are major industrial economies. Their heads of state or of government hold yearly summits to discuss the major economic and political issues.G8 member countries:CanadaJapanFranceRussiaGermanyThe United KingdomItalyThe United States
4 G-20: Advanced Industrial & Emerging Market Economies Estab.1999MexicoThe United KingdomCanadaIndonesiaRussiaThe United StatesChinaItalySaudi ArabiaThe European UnionArgentinaFranceJapanSouth AfricaAustraliaGermanyKorea, Republic ofTurkeyBrazilIndia1999 est. The G-20 was formed as a new forum for cooperation and consultation on matters pertaining to the international financial system. It studies, reviews, and promotes discussion among key industrial and emerging market countries of policy issues pertaining to the promotion of international financial stability, and seeks to address issues that go beyond the responsibilities of any one organization. The membership of the G-20 comprises the finance ministers and central bank governors of the G-7, 12 other key countries, and also the European Union, (source imf)
5 G 20 of Industrial Economies and Emerging-market Economies (Group of Twenty Finance Ministers and Central Bank Governors)Estab: 1999The G-20 was established in 1999 and reflects the diverse interests of the systemically significant industrial and emerging-market economies. (see: About the G-20). It has a high degree of representativeness and legitimacy on account of its geographical composition (members are drawn from all continents) and its large share of global population (two-thirds) and world GNP (around 90 per cent). The G-20's broad representation of countries at different stages of development gives its consensus outcomes greater impact than those of the G-7. Can all member countries exert equal influence?Achieving consensus is the underlying principle of G-20 activity with regard to comments, recommendations and measures to be adopted. There are no formal votes or resolutions on the basis of fixed voting shares or economic criteria. Every G-20 member has one 'voice' with which it can take an active part in G-20 activity. To this extent the influence a country can exert is shaped decisively by its commitment. Argentina Australia Brazil Canada China France Germany India Indonesia Italy Japan Mexico Russia Saudi Arabia South Africa South Korea Turkey United Kingdom United States European Union
6 AICs whose central banks cooperate to regulate international finance (original 10 of IMF +1) (estab )The current G10 member states are: Belgium Canada France Germany Italy Japan Netherlands Sweden Switzerland (1969) United Kingdom United States
7 Developing Countries 20+3 (estab2003) accounts for 60% of the world's population, 70% of its farmers and 26% of world’s agricultural exports.Indonesia Mexico Nigeria Pakistan Paraguay Peru Philippines South Africa Tanzania Thailand Uruguay Venezuela Zimbabwe Argentina Bolivia Brazil Chile China Cuba Ecuador Egypt Guatemala IndiaThe G20 (Group of 20, also variously G21, G23 and G20+) is a bloc of developing nations established on 20 August Distinct and separate from the G-20 major economies, the group emerged at the 5th Ministerial WTO conference, held in Cancún, Mexico, from 10 September to 14 September The G-20 accounts for 60% of the world's population, 70% of its farmers and 26% of world’s agricultural exports
8 World System Theory:Core vs. peripheryColonizers vs. Colonized
9 Core-semi periphery-periphery countries Core / Periphery Division of the World The world can be perceived as a core / periphery dichotomy where core countries are characterized by high levels of development, a capacity at innovation and a convergence of trade flows. The core has a level of dominance over the periphery which is reflected in trade and transportation. Accessibility is higher within the elements of the core than within the periphery. Most of high level economic activities and innovations are located at the core, with the periphery subjugated to those processes at various levels. This pattern was particularly prevalent during the colonial era where the development of transport systems in the developing world mainly favored the accessibility of core countries to the resources and markets of the periphery, a situation that endured until the 1960s and 1970s. The semi-periphery has a higher level of autonomy and has been the object of significant improvements in economic development (China, Brazil, Malaysia, etc.). Concomitantly, the accessibility of the semi-periphery improved, permitting the exploitation of its comparative advantages in labor and resources.
12 IMF: http://www.youtube.com/watch?v=XYkUkTkN060 (1min) WB & IMF:(3 min) (2007)A clip from the documentary "The New Rulers of The World" by film maker John Pilger. The WB and the IMF control most of the world's cash flow. Please check out all of John Pilger's documentaries.WB: (8min)Published on Jun 21, 2013Abby Martin talks to Karen Hudes, former senior executive at the World Bank, about her experience blowing the whistle on the high level corruption within the international financial system and how her story was censored. (view at home)
16 Global Colonial Empires established by Colonizing Nations by 1914 Britain France SpainPortugal Netherlands German ReichOttoman Belgium Russia Japan Qing China Austro-Hungary Denmark USA ItalyIndependent countries
17 World map of colonialism at the end of the Second World War in 1945.
19 Which arguments of the DW authors exemplify WST’s explanation on ‘development’? (Find from DW articles)WST explains:World system (WS) represents a hierarchy of powerCore’s control of the global market is through the established territorial division of labor reinforced by the World systemThe system reinforces unequal trade relations between core and peripheral countries, which increases differential flow of surplus to the CoreOwnership of advanced technology is a central factor in the positioning of a region in the Core or the Periphery.
20 5. New Division of Labour (NDL): Periphery does labor-intensive and the Core does capital-intensive productionPUT-NDLP power hierarchyU unequal exchangeT technology-advancedNDL new division of labour
21 http://www. dailymotion 2 min1.26min1.46mina combining form meaning “resembling,” “having some, but not all of the features of,” used in the formation of compound words: quasi-definition