Immanuel Wallenstein talks about a world system which is dominated by the core group of countries which are democratic and capitalistic, followed by semi-periphery which contains authoritarian regimes like those of LATAM or North Korea and finally you have the Global South where you may have non-democratic and less stable countries. As per his theory this system is important for Capitalism to thrive i.e. a world system which is unequal in terms of governance, wages, social structure. The peripheral countries are needed to provide raw material, labor which can then be exploited by the Core group which can covert this into means of productions which drives Capitalism.
So, we have countries like Bangladesh which being a peripheral country helps the apparel industry of the US by providing low-cost services due to low wage. India also does export with US on the same yardstick, the IT industry labor-cost arbitrage being the prime example.
With the new tariff wars the system is bound to shake as the drivers of Capitalism itself are going to impacted due to this disruption. There might be cases here and there, or offshoring options to countries which are more amiable to US terms of negotiations. India doesn't exactly appear in the peripheral belt because of its much mature economy social systems and democracy but still its far away from Core of Capitalistic belt of North America and the West Europe. Still if provides enough impetus in terms of its low-cost exports in tangibles as well as intangibles which US should very well soon realize.
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