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The World Economy and the Logic of Economic (Under-) Development

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Review Essay Global Political Economy

The World Economy and the Logic of Economic (Under-) Development

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Introduction Summary Critical Discussion Conclusion Reference

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Based on the following three articles: · Immanuel Wallerstein, „The Rise and Future Demise of the World Capitalist System“, Comparative Studies in Society and History 16 (1974), pp. 387-415. · Jagdish Bhagwati, „Free Trade: Old and New Challenges‟ The Economic Journal, 104(423) (1994), pp. 231-46. · Alice Amsden, „The State and Taiwan‘s Economic Development,‟ in George Crane & Abla Amawi (eds.) The Theoretical Evolution of International Political Economy (Oxford: Oxford University Press, 1997), pp. 193-207.

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1. Introduction This paper is a critical discussion of the central aspect: „The World Economy and the Logic of Economic (Under-) Development“ in the Global Political Economy. The foundation of this paper is based on three pieces: Wallerstein (1974), Bhagwati (1994) and Amsden (1997) which all provide different views about the world economy in terms of political and theoretical approaches. The introduction will be followed by a short summary concerning the protectionism that is evident throughout and the resulting ethical issues. The critical discussion will compare and evaluate the assumptions and concepts of each article which will then be concluded with the addition of my point of view. 2. Summary Immanuel Wallerstein‘s: „The Rise and Future Demise of the World Capitalist System“, from a Marxist point of view, describes a single world system which is split into three stages and any state in the world will fall into one of these stages. The ‘core’ stage includes developed countries, e.g. OECD countries. These countries have a high amount of power, a high level of technology, they exploit the ‘peripheral’ stage and manufacture

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