Glossary
Core Countries
In Wallerstein's theory, these are the dominant, industrialized nations that control the global economy, benefiting from high-profit production and advanced technology.
Example:
Japan, with its advanced technology and strong financial markets, is a prime example of a Core Country in the global economic system.
Dependency Theory
A theory arguing that less developed countries (LDCs) are kept in a state of economic dependence on more developed countries (MDCs), hindering their ability to achieve full development.
Example:
The idea that former colonies struggle to develop due to continued economic ties and reliance on their former colonizers aligns with the principles of Dependency Theory.
Drive to Maturity
The fourth stage in Rostow's model, characterized by technological advancements, a more diversified economy, a growing service sector, and the development of skilled labor.
Example:
South Korea's economy, with its advanced electronics industries and highly skilled workforce, exemplifies a nation in the Drive to Maturity stage.
High Mass Consumption
The fifth and final stage in Rostow's model, where a society is highly industrialized, has a dominant service sector, high living standards, and a focus on consumer goods.
Example:
The United States, with its widespread access to consumer products and a large service economy, is considered to be in the High Mass Consumption stage.
LDCs (Less Developed Countries)
Nations with lower levels of economic development, often characterized by lower GDP per capita, less industrialization, and reliance on primary sector activities.
Example:
Haiti, facing significant economic challenges and limited industrialization, is often cited as an LDC.
MDCs (More Developed Countries)
Nations with advanced economies, high levels of industrialization, high GDP per capita, and a dominant service sector, often benefiting from the global economic system.
Example:
Germany, with its robust manufacturing sector and high living standards, is a clear example of an MDC.
Periphery Countries
In Wallerstein's theory, these are less developed countries that provide raw materials, cheap labor, and agricultural products to the core, often experiencing exploitation.
Example:
Many nations in Sub-Saharan Africa function as Periphery Countries, supplying minerals and agricultural goods to wealthier nations.
Preconditions for Takeoff
The second stage in Rostow's model, where a society begins to develop infrastructure, invest in education, and shift towards more productive agricultural practices, setting the stage for industrial growth.
Example:
When a government starts building national highways and investing heavily in public schools, it's creating the Preconditions for Takeoff for future economic expansion.
Rostow's Stages of Development
A linear model proposing that countries develop in five sequential stages, moving from a traditional, agriculture-based economy to a modern, service-based one.
Example:
Rostow's model suggests that a country like Vietnam, currently experiencing rapid industrialization, might be in the Takeoff stage, following a predictable path towards economic maturity.
Semi-Periphery Countries
In Wallerstein's theory, these countries are in an intermediate position, possessing some industrialization but still dependent on core countries, acting as a buffer between core and periphery.
Example:
Brazil, with its significant industrial base but continued reliance on foreign investment and commodity exports, is often categorized as a Semi-Periphery Country.
Takeoff
The third stage in Rostow's model, marked by rapid industrialization, significant urbanization, and a shift from agricultural dominance to manufacturing.
Example:
During the late 19th century, Germany experienced its Takeoff stage as factories rapidly expanded and its urban centers swelled with new industrial workers.
Traditional Society
The first stage in Rostow's model, characterized by a subsistence-based economy, limited technology, and a focus on primary sector activities like farming and mining.
Example:
Before the Industrial Revolution, most European nations were Traditional Societies, with the majority of their populations engaged in agricultural work.
Wallerstein's World Systems Theory
A theory that views the world as a single interconnected economic system, divided into core, periphery, and semi-periphery countries based on their roles in the global economy.
Example:
According to Wallerstein's World Systems Theory, the global coffee trade illustrates how core nations process and profit from raw materials sourced from periphery countries.