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Global Interstate
System
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Global Interstate System


It is the whole system of human interactions. The
modern world system is structured politically as an
interstate system – a system of competing and allying
states. Political scientists commonly call this the
international system and this is the focal point of the
field of international relations.

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Global Interstate System


World-systems are defined by the existence of a
division of labor. The modern world-system has a multi-
state political structure (the interstate system) and
therefore its division of labor is international division of
labor.

The division of labor consists of three zones according


to the prevalence of profitable industries or activities:
core, semi periphery and periphery.
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Division of labor
Core – high income nations in the world economy. This
is the manufacturing base of the planet where resources
funnel in to become the technology and wealth enjoyed
by the Western World today. They are dominant
capitalist countries that exploit peripheral countries for
labor and raw materials.

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Division of labor
Semi-periphery – are the middle-income countries,
such as India and Brazil. These are considered semi-
periphery due to their closer ties to the global economic
core.

Peripheral countries share characteristics of both core


and peripheral countries.

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Division of labor
Periphery – called as the low-income countries, whose
natural resources or labor support the wealthier
countries, first as colonies and now by working for
multinational corporations under neocolonialism.

Peripheral countries are dependent on core countries for


capital and have underdeveloped industry.

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Global Interstate System


Resources are redistributed from the underdeveloped
(poor part of the world - the periphery) to developed
countries (core).

Cyclical rhythms represent the short-term fluctuation of


economy, while secular trends mean deeper long run
tendencies, such as general economic growth or decline.

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Global Interstate System


The term contradiction means a general controversy in the
system, usually concerning some short term vs. long term trade-
offs. The last temporal feature is the crisis: a crisis occurs if a
constellation of circumstances brings about the end of the
system.

The world-system theory stresses that world-systems should be


the basic unit of social analysis. Thus, we should focus not on
individual states, but on the relations between their groupings
(core, semi-periphery, and periphery)
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Wallerstein’s World System Theory model


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Global governance
Global Governance is sometimes referred to as “world
governance.” Global is a movement towards political
cooperation among transnational actors, negotiating
responses to problems that affect more than one state or
region. “Global Governance" may mean the process of
designating laws, rules, or regulations intended for a
global scale.

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Effects of Global governance


Globalization restrains governments by inducing
increased budgetary pressure. As a consequence,
governments may attempt to curtail the welfare
state, which is often seen as a drag on international
competitiveness, by reducing especially their
expenditures on transfers and subsidies.

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Internationalism vs Globalization
• Internationalization refers to the increasing importance of international
trade, international relations, treaties, alliances, and many more.
International, means between or among nations. The basic unit remains
the nation, even as relations among nations become increasingly
necessary and important.

• Globalization refers to global economic integration of many formerly


national economies into one global economy, mainly by free trade and
free capital mobility, but also by easy or uncontrolled migration. It is the
effective erasure of national boundaries for economic purposes.
International trade (governed by comparative advantage) becomes
interregional trade (governed by absolute advantage).

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Internationalism vs Globalization
The national community embraced both national labor
and national capital, and these classes cooperated to
produce national goods largely with national natural
resources. These national goods then competed in
international markets against the goods of other
nations, produced by their own national capital/labor
teams using their own resources. This is
internationalization as defined a while ago.

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