The Modern

World-System as a
Capitalist
World-Economy
Immanuel Wallerstein
Presented
by
PHOENIX
 THE MODERN
WORLD-SYSTEM
● It originated in the 16th ● World-Economy (Braudel’s
century.
● Only found primarily in
parts of Europe and
America, but has spread
throughout the globe over
time.
économie-monde) is a
broad geographic region
with a social structure
and, as a result,
substantial internal
trade of necessary or
necessary commodities, as
well as capital and labor
flows.
 THE MODERN
WORLD-SYSTEM
● It is not bounded by a ● The division of labor
unitary political that is constituted is
structure. the main thing that
unifies the structure the
● It contains many cultures most.
and groups–practicing
many religions, speaking
many languages, differing
in their everyday
patterns.
 THE MODERN WORLD-SYSTEM
● Thousands of years all across the world. Nor is the
existence of persons working for wages sufficient as a
definition.

● Wage-labor.

● We are in a capitalist system.

● Endless accumulation is quite a simple concept.

● A world-economy and a capitalist system go together.

The only world-economy to have
survived for a long time has been
the modern world-system.
 Point and Terms of Capitalism
and World-Economy
● Capitalism is an economic and political system by which
the trading industries of a country are owned and
managed by the private sector (businessmen) as opposed
to state management and ownership (which is
communism/socialism).
 +

Larger Multiple
Market States

&

Better Larger Economic

Profitability Expansion
 POINTERS
● Difference in whoever manages and owns the trade
industry.

● Special relationship with a political power; and needs

larger markets and multiplicity in states.

● A capitalist world economy is comprised by multiple

different institutions that partake in different
processes to sustain the system.
 MARKETS
● The flagship symbol of a capitalist
economy.

● It can be physical structure or

virtual aspect in a sense.
 MARKETS
● Single virtual space with all
commodities available = political
lever.

● However, free market is a myth.

● Endless accumulation of capital

would be impossible.
 MARKETS
MONOPOLY QUASI-MONOPOLY OLIGOPOLY

● One company ● Market with a ● Only a small

controls the few large number of
supply of a suppliers. firms
product. operating.
● It has very
● It has no little ● Substantial
competition. competition. influence over
a certain
industry.
 MARKETS
● Monopoly is preferred.

● Perfect Monopoly is difficult to achieve, but

Quasi-Monopolies are not.

● System of Patents.

● “Without such interferences, the capitalist system

could not thrive and therefore could not survive.”
 Appealing to doctrines of
ONE PRODUCER’S
●
a free market and
MONOPOLISTIC offering support to
political leaders.
ADVANTAGE IS
ANOTHER ● Using their state power
PRODUCER’S LOSS. to sustain competitive
producers.
 ● A quasi-monopoly may
cease to exist.

● Leading products have

moderately short lives.

A once-leading industries
QUASI-MONOPOLIES
●
past their prime is more
competitive and have
ARE become less profitable.

SELF-LIQUIDATING.
 END.
Presented
by
PHOENIX
 SUMMARY
● Goal of Capitalism: Accumulation of Wealth

● Larger Market = More Profit

● A market is FREE if it relies on the supply/demand with

little/no governmental interference.

● Capitalists don’t favor Free Market. Capitalists rely on

the support of the government because it has advantages.