How did world systems theory divide the capitalist world economy into core, periphery, and semiperiphery?

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World-systems theory, developed by Immanuel Wallerstein, posits that the global economy functions as a single, integrated capitalist system characterized by an international division of labour. Rather than viewing nations in isolation, this framework classifies them based on their economic power and their position relative to the system's center.12

The world economy is divided into three structural categories:

  • Core: These nations, such as the United States and Japan, possess strong central governments, extensive bureaucracies, and powerful militaries. They dominate international commerce, specialize in high-cost manufactured goods, and accumulate capital surpluses through unequal trade relations.12
  • Periphery: These countries, including many in Africa and Asia, lack strong state institutions and are often subject to external control. Their economies are structured to export raw materials to the core, frequently relying on coercive labor practices.12
  • Semiperiphery: This category includes regions in decline or those attempting to improve their economic standing, such as Brazil, China, and various eastern European states. They occupy an intermediate position, possessing limited access to high-quality manufacturing and international banking, but they do not benefit from global trade to the same extent as the core.12

Countries can shift between these categories based on economic fluctuations and the evolving logic of the global system.1