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The Modern World-System
as a Capitalist World-Economy
I M M A N U E L W A L L E R S T E I N
OVERVIEW
The work of Immanuel Wallerstein epitomizes the argument that to understand the
world today we must look back to at least the sixteenth century and the beginning
of the capitalist world-economy. This is the key concept in his work. A world-
economy assumes a large geographic zone within which there is a division of labor
and the significant exchange of goods, capital, and labor. Capitalism is not simply
producing for sale on the market, earning a profit, or the existence of wage labor.
For Wallerstein the defining characteristic of a capitalist system is the endless ac-
cumulation of capital. In this article he also introduces the key concepts of core,
periphery, and unequal exchange. He also discusses the concepts of sexism and
racism as applied to his world-economy perspective.
Questions to Keep in Mind
1. What is the relation between the international system of states and the world-economy?
2. Why does Wallerstein claim a totally free market is not a day-to-day reality?
3. What is meant by core and periphery and how do the concepts relate to the concept of unequal
exchange?
4. The various complex relations of the world-economy are beset by two opposite ideological
themes—universalism on the one hand and racism and sexism on the other. How are they
interrelated and what is their impact on the efficiency of the world-economy and the ability
to accumulate capital?
The world in which we are now living, the modern What we mean by a world-economy (Braudel’s
world-system, had its origins in the
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