IR2002IR2002THEORIES OF THEORIES OF

INTERNATIONAL INTERNATIONAL RELATIONSRELATIONS

DEPENDENCY & WORLD DEPENDENCY & WORLD SYSTEMS THEORYSYSTEMS THEORY

BACKGROUNDBACKGROUND

Crisis of capitalism: volatility, uncertainty, Crisis of capitalism: volatility, uncertainty, inequalityinequality

Deeper structure of international relations Deeper structure of international relations (global capitalist system)(global capitalist system)

Lenin’s Theory of ImperialismLenin’s Theory of Imperialism

Three key features: (1) all politics, international Three key features: (1) all politics, international and domestic, takes place within the framework and domestic, takes place within the framework of a capitalist world-economy. (2) States are not of a capitalist world-economy. (2) States are not the only important actors in world politics, rather the only important actors in world politics, rather social classes are also very significant. (3) It is social classes are also very significant. (3) It is the location of these states and classes within the location of these states and classes within the structure of the capitalist world-economy that the structure of the capitalist world-economy that constrains their behaviour and determines constrains their behaviour and determines patterns of interaction and domination between patterns of interaction and domination between them.them.

Five Features of Imperialism (Or Five Features of Imperialism (Or the Highest Stage of Capitalism)the Highest Stage of Capitalism)

(1) the concentration of production and capital has (1) the concentration of production and capital has developed to such a high stage that it has created developed to such a high stage that it has created monopolies which play a decisive role in economic life; monopolies which play a decisive role in economic life;

(2) the merging of bank capital with industrial capital, and (2) the merging of bank capital with industrial capital, and the creation, on the basis of this “finance capital”, of a the creation, on the basis of this “finance capital”, of a financial oligarchy; financial oligarchy;

(3) (3) the export of capital as distinguished from the export the export of capital as distinguished from the export of commodities acquires exceptional importanceof commodities acquires exceptional importance; ;

FeaturesFeatures(Continued)(Continued)

(4) the formation of international (4) the formation of international monopolist capitalist associations which monopolist capitalist associations which share the world among themselves, and share the world among themselves, and

(5) the territorial division of the whole (5) the territorial division of the whole world among the biggest capitalist powers world among the biggest capitalist powers is completed. is completed.

SummarySummary

Imperialism is capitalism at that stage of Imperialism is capitalism at that stage of development at which the dominance of development at which the dominance of monopolies and finance capital is monopolies and finance capital is established; in which the export of capital established; in which the export of capital has acquired pronounced importance; in has acquired pronounced importance; in which the division of the world among the which the division of the world among the international trusts has begun, in which the international trusts has begun, in which the division of all territories of the globe division of all territories of the globe among the biggest capitalist powers has among the biggest capitalist powers has been completed. been completed.

Global InequalityGlobal Inequality

One-fifth of the world’s population are living in One-fifth of the world’s population are living in extreme povertyextreme poverty

Average incomes in the richest 20 countries are Average incomes in the richest 20 countries are 37 times higher than in the poorest 20—the ratio 37 times higher than in the poorest 20—the ratio has doubled in the last 20 years.has doubled in the last 20 years.

In the developed world subsidies to agricultural In the developed world subsidies to agricultural producers are six times higher than overseas producers are six times higher than overseas development aid.development aid.

Global InequalityGlobal Inequality(Continued)(Continued)

70 per cent of the world’s poor and two-thirds of 70 per cent of the world’s poor and two-thirds of the world’s illiterates are women.the world’s illiterates are women.

More than 30,000 children die every day from More than 30,000 children die every day from easily preventable diseases.easily preventable diseases.

One billion people lack access to clean water.One billion people lack access to clean water.

(Source: Cited in Baylis & Smith, p. 228).(Source: Cited in Baylis & Smith, p. 228).

Global InequalityGlobal Inequality(Continued)(Continued)

The total wealth of the world’s 358 billionaires is The total wealth of the world’s 358 billionaires is equal to the combined incomes of the poorest 45 equal to the combined incomes of the poorest 45 per cent of the world’s population.per cent of the world’s population.

Marx: ‘Accumulation of wealth at one pole is, Marx: ‘Accumulation of wealth at one pole is, therefore, at the same time accumulation of therefore, at the same time accumulation of misery, agony of toil, slavery, ignorance, brutality misery, agony of toil, slavery, ignorance, brutality at the opposite pole’.at the opposite pole’.

Historical Origins of InequalityHistorical Origins of Inequality

Mainstream explanation: Mainstream explanation: Underdevelopment as a natural state.Underdevelopment as a natural state.

Poor countries are traditional (non-Poor countries are traditional (non-modern) societiesmodern) societies

External contact key to developmentExternal contact key to development

Dependency TheoryDependency Theory((dependenciadependencia))

Earliest formulation: Earliest formulation: dependenciadependencia challenged the central modernisation challenged the central modernisation hypothesis that the secret to development hypothesis that the secret to development lay in enhancing external linkages through lay in enhancing external linkages through trade, aid and investment.trade, aid and investment.

The failure of the policy of import The failure of the policy of import substitutionsubstitution

Later FormulationLater Formulation

Social reality as an integrated whole. Political and Social reality as an integrated whole. Political and economic processes in society fuse into each other and economic processes in society fuse into each other and form a single web of structural relationsform a single web of structural relations

Dependency scholars reject the notion of closed national Dependency scholars reject the notion of closed national economyeconomy

Reject notion of a ‘dual’ economyReject notion of a ‘dual’ economy

Importance of colonial history: underdevelopment is the Importance of colonial history: underdevelopment is the outcome of historical processes peculiar to colonialism.outcome of historical processes peculiar to colonialism.

DefinitionDefinition

Dependence is a conditioning situation in which Dependence is a conditioning situation in which the economies of one group of countries are the economies of one group of countries are conditioned by the development and expansion conditioned by the development and expansion of others. A relationship of interdependence of others. A relationship of interdependence between two or more economies or between between two or more economies or between such economies and the world trading system such economies and the world trading system becomes a dependent relationship when some becomes a dependent relationship when some countries can expand through self-impulsion countries can expand through self-impulsion while others, being in a dependent situation, can while others, being in a dependent situation, can only expand as a reflection of the dominant only expand as a reflection of the dominant countries, which may have positive or negative countries, which may have positive or negative effects on their immediate development.effects on their immediate development.

Wallerstein’s World-System TheoryWallerstein’s World-System Theory

Two types of world-systems: world-empires and Two types of world-systems: world-empires and world-economies.world-economies.

Distinction is based on how decisions about Distinction is based on how decisions about resource distribution are made.resource distribution are made.

World-empire: A centralized political system World-empire: A centralized political system uses it power to redistribute resources from uses it power to redistribute resources from peripheral areas to the central core area.peripheral areas to the central core area.

(Example: Roman empire: tribute)(Example: Roman empire: tribute)

World-EconomyWorld-Economy

Multiple centres of political authority.Multiple centres of political authority.

Resources distributed through the Resources distributed through the mechanism of the market.mechanism of the market.

Modern world-system is an example of the Modern world-system is an example of the world-economy.world-economy.

Origins of MWSOrigins of MWS

Turn of the 16Turn of the 16thth Century in Europe. Century in Europe.

Expansion to the entire globe.Expansion to the entire globe.

Driving force: capitalismDriving force: capitalism

CapitalismCapitalismWallerstein’s DefinitionWallerstein’s Definition

A system of production for sale in a market A system of production for sale in a market for profit and appropriation of this profit on for profit and appropriation of this profit on the basis of individual or collective the basis of individual or collective ownership.ownership.

TermsTerms

CORECORE

Democratic governmentsDemocratic governments

High wagesHigh wages

Import: raw materialsImport: raw materials

Export: manufacturesExport: manufactures

High investmentHigh investment

Welfare servicesWelfare services

TermsTerms

PeripheryPeriphery

Non-democratic governmentsNon-democratic governments

Export: raw materialsExport: raw materials

Import: ManufacturesImport: Manufactures

Below subsistence wagesBelow subsistence wages

No welfare servicesNo welfare services

Semi-PeripherySemi-Periphery

Authoritarian governmentsAuthoritarian governments

Export: ‘mature’ manufactures; raw Export: ‘mature’ manufactures; raw materialsmaterials

Import: manufactures; raw materialsImport: manufactures; raw materials

Low wagesLow wages

Low welfare servicesLow welfare services

Two DimensionsTwo Dimensions

Spatial: differing economic roles played by Spatial: differing economic roles played by different regions within the world economy.different regions within the world economy.

Core-Periphery distinction (later Wallerstein Core-Periphery distinction (later Wallerstein added a semi-peripheral zone).added a semi-peripheral zone).

WST: Three zones are linked together in an WST: Three zones are linked together in an exploitative relationship in which wealth is exploitative relationship in which wealth is drained away from the periphery to the centre.drained away from the periphery to the centre.

Dimensions Dimensions (continued)(continued)

Temporal: Cyclical rhythms, secular Temporal: Cyclical rhythms, secular trends, contradictions, and crisis.trends, contradictions, and crisis.

Cyclical rhythms: capitalist world-economy Cyclical rhythms: capitalist world-economy goes through recurrent periods of goes through recurrent periods of expansion and subsequent contraction.expansion and subsequent contraction.

Secular trends: long-term growth or Secular trends: long-term growth or contraction of the world-economy.contraction of the world-economy.

Temporal DimensionTemporal Dimension(Continued)(Continued)

Contradictions: These arise because of Contradictions: These arise because of ‘constraints imposed by systemic structures ‘constraints imposed by systemic structures which make one set of behavior optimal for which make one set of behavior optimal for actors in the short run and a different, even actors in the short run and a different, even opposite, set of behavior optimal for the same opposite, set of behavior optimal for the same actors in the middle run’actors in the middle run’

Major problem: under-consumption (lower Major problem: under-consumption (lower wages impact consumption)wages impact consumption)

CrisisCrisis

System is unable to reproduce itself.System is unable to reproduce itself.

New possibilities (less determinisitic)New possibilities (less determinisitic)

Decline of US powerDecline of US power