1. Models, Theories and More Theories, oh my!!!!

2. Construction of the World Economy
Capitalism – people, corporations, and states produce goods and services and exchange them in the world market, with the goal of achieving profit.
Commodification – the process of placing a price on a good and then buying, selling, and trading the good.
Colonialism – brought the world into the world economy, setting up an interdependent global economy.

3. Core-Periphery Model Created by Immanuel Wallerstein
A World-Systems Theory
He says we can view the world as an interlocked system of states
World Economy has 3 parts: Core, Periphery and Semi-Periphery

4. Three Tier Structure Core Periphery Semi-periphery
Processes that incorporate higher levels of education, higher salaries, and more technology
* Generate more wealth in the world economy
Periphery
Processes that incorporate lower levels of education, lower salaries, and less technology
* Generate less wealth in the world economy
Semi-periphery
Places where core and periphery processes are both occurring. Places that are exploited by the core but then exploit the periphery.
* Serves as a buffer between core and periphery

5. 3 Parts of Core-Periphery Model
Core – economically dominant states
Periphery – developing states; have little autonomy or influence
Semi-periphery – middle states; keeps the world from being polarized into two extremes

7. Core-Periphery Model cont…
World economy has 1 market and a global division of labor
The world must be seen as a system of interlinking parts; ties political and economic geography together

8. Geopolitics

9. Geopolitics
Political geography which deals with strategic value of land & sea area, national economic & military powers and ambitions
Examples:
“Manifest Destiny” justified Westward Expansion and European Imperialism
The Monroe Doctrine declared the Western Hemisphere off limits to the Europeans, implying USA dominance

10. Heartland Theory Created by Halford Mackinder (Br)
Future major powers will be those who control the land, not the sea.
“Who rules East Europe commands the Heartland; who rules the Heartland commands the World-Island; who rules the World Island commands the World.”

11. Heartland Theory cont…
The greatest land power would be sited in the “World Island,” the Eurasian landmass
Eastern Europe = the core of the heartland

12. Mackinder’s Heartland Theory

13. Rimland Theory Created by Nicholas Spykman (U.S.)
“Who controls the Rimland rules Eurasia; who rules Eurasia controls the destinies of the world.”
The Rimland has, thus far, remained politically fragmented, which Spykman believed was to the advantage of both the USA and USSR.

14. Spykman’s Rimland Theory

15. Organic State Theory Friedrich Ratzel (Ger) (1844-1904)
State resembles a biological organism – birth, maturity, decline, death
Nourishment through acquisition of less powerful territories; space is essential
Failure to compete and expand and win will lead to the extinction of the state