ECONOMIC ADVANTAGE TO EUROPE

Economic advantage to Europe

Economic advantage to Europe

Introduction

Immanuel Wallerstein developed a theoretical structure in his book to better understand the historical changes that are involved in the rise of modern world. The modern system of world that is basically capitalist in nature came into dominance after following the crisis of feudal system. It also helps in explaining rise of Western Europe which further leads it to supremacy of world during 1450 - 1670. The theory that is explained by Wallerstein helps in better and comprehensive understanding of internal and external signs regarding the process of modernization during the mentioned period and gives understanding for comparison with other parts of the world (Wallerstein, 2011, pp. 132-164).

Discussion

Before the sixteen century, feudal system dominated the Western Europe before its adoption of capitalist system. During 1150 - 1300 it was observed that commerce and population both expanded within the limits of the system that prevails during that time, feudal system. In addition to this it was noted that this expansion came to end during 1300 - 1450 bringing extreme economic crisis. According the view of Wallerstein, the fall of feudal system was due to the following factors:

There is decrease or no growth in agricultural production. This further means that with expansion of ruling class there is increased burden on poor farmers.

The feudal system reached its maximum level of its economic cycle and after this the economy ion this system began to shrink.

With the change of climatic conditions there is decrease in the productivity of agricultural production. This also created an outbreak in the population.

With above mentioned factors, Europe moved toward the adoption of capitalist economy for continued and consistent growth in economy. However, with adoption of capitalist economy it involved the increase in geographical size, the creation of various modes of controlling labor and development of comparatively strong machinery of state in various states of Western Europe. In the late fifteen century, in reaction to the crisis of feudal system new economic system appeared. It is also notable that the new economic system was different from old system as it was not a single political system as compared with imperial system (Wallerstein, 2011, pp. 132-164). It was notable that new system underlies with division of labor internationally which identifies relationships among different regions and also varying labor conditions in each region. In the model that is defined by Wallerstein political system also relates directly with placement of that region in economy of world. On the basis of comparison, there are four different categories that are identified by Wallerstein which are; core category, semi periphery category, periphery category and external category among them all regions of the world are placed. In addition to this each category defines relative position of each region among world economy along with specific economic and internal political properties (Smith, 1836).

Regions in the core category took most benefits from the new economic system or capitalist world ...