Essay question
Qiu
EconWeek4.pptWorld Systems
- World-Empire: a system of division of labor dominated by a single political structure
- World-Economy: a system of division of labor with multiple political structures
Capitalist World System
- “Endless” Accumulation of Capital: reinvestment of surplus product for expansion
- Inter-State Competition
- Hegemonic Power (to be discussed)
- Three Structural Layers: core, semi-periphery, periphery
Index of Per-Capita GDP, 1820-2008
Per Capita GDP Index, 1820
- World Average = 100%
- Western Europe = 179%
- Western Offshoots = 181%
- Eastern Europe = 103%
- Former USSR = 103%
- Latin America = 104%
- Asia = 87%
- Africa = 63%
Per Capita GDP Index, 1870
- World Average = 100%
- Western Europe = 225%
- Western Offshoots = 278%
- Eastern Europe = 108%
- Former USSR = 108%
- Latin America = 78%
- Asia = 64%
- Africa = 57%
Per Capita GDP Index, 1913
- World Average = 100%
- Western Europe = 229%
- Western Offshoots = 343%
- Eastern Europe = 111%
- Former USSR = 98%
- Latin America = 98%
- Asia = 46%
- Africa = 42%
Per Capita GDP Index, 1950
- World Average = 100%
- Western Europe = 216%
- Western Offshoots = 439%
- Eastern Europe = 100%
- Former USSR = 135%
- Latin America = 119%
- Asia = 34%
- Africa = 42%
Per Capita GDP Index, 2008
- World Average = 100%
- Western Europe = 285%
- Western Offshoots = 396%
- Eastern Europe = 113%
- Former USSR = 104%
- Latin America = 92%
- Asia = 74%
- Africa = 23%
Three Structural Layers
- Western Europe + Western Offshoots: 2-4 times of world average per capita GDP
- Latin America + Eastern Europe + Russia + Japan (before 1970): about world average per capita GDP
- Asia + Africa: 1/4 - 2/3 of world average per capita GDP
Three Structural Layers
- Core: wealthiest countries; specialize in monopolistic, high value-added activities
- Periphery: historically included the great majority of the world population; specialize in highly competitive, low value-added activities
- Semi-Periphery: has a mixture of core-like and peripheral-like activities
Unequal Exchange
- Core countries export commodities that embody comparatively less labor in exchange for commodities exported by the periphery embodying comparatively more labor
- “Surplus Value” (labor embodied in surplus product) is transferred from the periphery to the core
iPhone Value Distribution, 2010
Kondratieff
Long Waves
- Expansion: monopolistic “leading” industries high profits rapid accumulation of capital
- Monopolies Do Not Last: invites competition; rising costs of production (growing wage cost)
- Stagnation / Crisis: falling profit rate
Global Capital Relocation
- Response to Crisis: core countries need to look for new “leading” industries
- Relocation: old industries in the core need to be relocated “somewhere”
Semi-Periphery
- Costs of Production: lower than the core
- Political and Economic Infrastructure: better than the periphery
- Historically preferred sites for global capital relocation
China and the Capitalist World System
- Imports and Exports: Chinese imports grew by 9 times and exports grew by 7 times between 1868 and 1913
- “Coolie Labor”: 苦力 ku li (“bitter work”)
- San Francisco: received 108,471 Chinese “coolies” from 1847 to 1863
- Foreign Capital in China: by 1920, foreign capital controlled 99% of China’s iron production, 76% of coal, 93% of railways, and 83% of modern shipping
Peruvian Chifa
(炒饭 fried rice)
Lomo saltado
China’s International Balance of Payment, 1895-1936
- Cumulative Trade Deficit: 5 billion taels of silver
- War Indemnity Payments: 900 million taels of silver
- Debt Principal and Interest Payments: 1.5 billion taels of silver
- Foreign Profits Repatriated: 2.8 billion taels of silver
China’s International Balance of Payment, 1895-1936
- Foreign Borrowing: 1.5 billion taels of silver
- Foreign Direct Investment: 1.4 billion taels of silver
- Overseas Chinese Repatriations: 4 billion taels of silver
China’s Transfer of Surplus
- War Indemnities + Debt Payments + Foreign Profits: 5.2 billion taels of silver; 130 million taels of silver per year
