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and states have to look to other states abroad as an outlet for excess goods and profits; this allowed state elites to delay the collapse of advanced capitalist economies, as workers here could be temporarily bought of with higher wages (labour aristocracy); competition between states would lead to wars between imperialists. Capitalism does develop third world countries, by exporting capital, but this leads to further conflict as developing countries out-compete developed nations.

3 Dependency theory - reject the optimism of liberal modernisation theorists and maintain that the advanced capitalist countries either underdevelop or prevent Third World countries from achieving genuine autonomous development.

Origins – Marxism and Latin American structuralism; a fundamental emphasis on North South and Third World issues. Developed countries opposed to the development of Third World countries and foreign capitalists form alliances with elites in LDC’s to prevent this. Prebisch – Third World countries suffered from declining terms of trade, could develop only through government intervention and import substitution policies.

Basic tenets – the source of third world problems is related to the structure of the international economy and not the inefficient policy choices of developing countries; LDC possibilities for development, can be determined or constrained by developed states e.g. although some NIE’ have prospered workers in these countries often receive lower wages and produce technologically less sophisticated goods than those produced in the industrialised core, the production of capital goods is also limited, and ultimately they depend on imports of machinery, technology and foreign investment from the core; change may only occur via a breaking of linkages with the core countries.

Critiques – are terms defined accurately e.g. are there degrees of dependence, different forms of dependence, core versus periphery; is capitalism the major form of domination or powerful states; are there different Western versus Soviet models of domination? Is too much emphasis given to the international system and not enough to the dynamic of internal politics? Can dependency theory explain the development of China? Are prescriptions for change defined in appropriate detail?

4 World-System theory – start with the global system and then move to an analysis of individual countries; concerned also with relations between states in the core and the rise and fall of hegemonic states, take a long term historical perspective.

The world system – a unit with a single division of labour and multiple cultural systems. World-systems can be of two main types: world-empires, which have a common political system, and world-economies, which do not have a common political system. Today there is only one world-system, a world-economy that is capitalist in form, which appropriates the surplus of the whole world-economy by core areas. States are not meaningful actors in their own right and neither the internal or external strength of a state can be viewed separately from its position in the world economy. However, a limited number of countries can ascend to the semi-periphery – the more advanced exemplars of dependent development. It is possible for states to change status in both an upwards and downwards direction. The semi-periphery contributes to the stability of the world economy; the continued expansion of the core combined w