How Does World Systems Theory Affect World System Theory

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The world woke up to the news of Wall Street collapsing in 2008 that threatened large numbers of financial institutions in the United States of America and across the globe. It is known to be one of the most financial crisis since the Great Depression of the 1930’s. The crisis was triggered by financiers from various lending institutions, Central bankers and other regulators who created the bubble in the financial sector. This had a domino effect across the globe triggering a massive bankruptcy across the financial institutions. Shares plunged in various stock markets in Americas, Asia, Europe, Africa, and Asia Pacific. That is an example of how interconnected (globalized) the world is, what happens in one part of the world can have an affect…show more content…
It was developed by Immanuel Wallerstein in the 1970s. The theory posits that the modern nation states exist within a broader economic, political and legal system which he refers to as a World System. These nations are part of a world-system of capitalism which refers to inter-regional and transnational division of labor which divides the world into three basic types of social systems/ geographical based hierarchical organized tiers. The first type is known as Core countries are the most advantaged areas in the world mostly North America and Europe. These states promote capitalism in terms of accumulating capital through tax, government purchasing, financing infrastructural development; invest heavily on research and development all with the aim of maintaining social order. They are seen as more exploitative because they have power in terms of dumping of unsafe goods in peripheral nations, exploit cheap labor from poor countries, acquire raw material at a cheaper price than it would be at the free market. Their political, economic and military clout allows these nations to accumulate wealth while exploiting other peripheral…show more content…
The last few years there have been a massive aid flow from the developed countries to developing countries. Despite help from foreign countries, government must formulate a health care policy which can provide some standard practice to protect the health and wellbeing of its citizens. This ensures that all the patients receive the same care no matter the service provider. The policy framework gives the scope, mechanisms a given government can choose from and implementation framework to fulfill the aims of the public health

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