{"id":3555,"date":"2026-08-11T22:11:57","date_gmt":"2026-08-11T16:41:57","guid":{"rendered":"https:\/\/forumias.com\/psir\/notes\/world-capitalist-economy-and-globalisation\/"},"modified":"2026-08-11T23:02:01","modified_gmt":"2026-08-11T17:32:01","slug":"world-capitalist-economy-and-globalisation","status":"publish","type":"psir_note","link":"https:\/\/forumias.com\/psir\/notes\/world-capitalist-economy-and-globalisation\/","title":{"rendered":"World capitalist economy and globalisation"},"content":{"rendered":"<div class=\"n-wrap\">\n<div class=\"n-shell\">\n<div class=\"n-crumb\"><a href=\"\/psir\/psir-notes\/\">PSIR Notes<\/a><span class=\"sep\">\u203a<\/span><a href=\"\/psir\/psir-notes\/#ii-a\">II-A Comparative Political Analysis and International Politics<\/a><span class=\"sep\">\u203a<\/span><span>World capitalist economy and globalisation<\/span><\/div>\n<header class=\"n-head\">\n<div class=\"n-eyebrow\">Paper I \u00b7 Comparative Political Analysis and International Politics<\/div>\n<h1 class=\"n-title\">World capitalist economy and globalisation<\/h1>\n<div class=\"n-syl\"><b>Syllabus \u00b7 Paper II-A \u00b7 6<\/b> \u2014 Key Concepts in International Relations : National interest, security and power; Balance of power and deterrence; Transational actors and collective security; <span class=\"cur\">World capitalist economy and globalisation<\/span>.<\/div>\n<\/header>\n<div class=\"n-grid\">\n  <main class=\"n-body\"><\/p>\n<h3 id=\"the-world-capitalist-economy-phases\">The World Capitalist Economy \u2014 Phases<\/h3>\n<ul>\n<li>Capitalism is expansionist by nature (profit is its engine) and has been globalising from the start of colonisation.<\/li>\n<\/ul>\n<p><span class=\"n-term\">From colonial capitalism to deglobalisation \u2014 the arc of the world economy.<\/span> <span class=\"n-term\">1 \u00b7 Colonial<\/span> (Inter-imperial rivalry \u2192 the two world wars) \u2192 <span class=\"n-term\">2 \u00b7 Bretton Woods<\/span> (Post-1945 Keynesian welfare model; new states dependent on Western finance) \u2192 <span class=\"n-term\">3 \u00b7 1970s crisis<\/span> (Debt, oil shock, falling commodity values, a destabilised dollar) \u2192 <span class=\"n-term\">4 \u00b7 Neoliberal turn<\/span> (Communism collapses, Third World BoP crises \u2192 the Washington Consensus and the WTO) \u2192 <span class=\"n-term\">5 \u00b7 Crisis again<\/span> (1997\u201398 Asia, the dot-com bust, 2008\u201309 GFC, COVID-19 \u2192 deglobalisation). <em>\u201cCasino capitalism\u201d \u2192 speculative finance and derivatives breed instability; uneven development and ethical and ecological costs follow.<\/em><\/p>\n<ul>\n<li>After 2008\u201309 \u2192 neoliberalism loses credibility; states tighten regulation and use stimulus \u2014 often to rescue corporates with public money. COVID-19 accelerated deglobalisation without producing a clear alternative.<\/li>\n<\/ul>\n<h3 id=\"dependency-world-systems-and-the-global-south\">Dependency, World-Systems, and the Global South<\/h3>\n<ul>\n<li><span class=\"n-sch\">Immanuel Wallerstein<\/span> \u2192 a core\u2013periphery world-system in which powerful states exploit weaker ones \u2014 \u201ceither socialism or barbarism.\u201d<\/li>\n<li><span class=\"n-sch\">Andre Gunder Frank<\/span> \u2192 the \u201cdevelopment of underdevelopment.\u201d <span class=\"n-sch\">Gunnar Myrdal<\/span> \u2192 the \u201cbackwash effect.\u201d <span class=\"n-sch\">Samir Amin<\/span> \u2192 the Global South is structurally disadvantaged in trade \u2014 cheap raw materials out, expensive goods in.<\/li>\n<li>Backdrop \u2192 market fundamentalism, privatisation and globalisation; <span class=\"n-sch\">Fukuyama<\/span>\u2019s \u201cend of history\u201d universalising neoliberalism; <span class=\"n-sch\">Noam Chomsky<\/span> on wealth and power concentrated in the North.<\/li>\n<\/ul>\n<div class=\"n-tw\">\n<table>\n<thead>\n<tr>\n<th>Challenge<\/th>\n<th>Working content<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span class=\"n-term\">Unequal trade<\/span><\/td>\n<td>Inequality and exploitation through structurally unequal terms of trade.<\/td>\n<\/tr>\n<tr>\n<td><span class=\"n-term\">Debt and SAPs<\/span><\/td>\n<td>Structural Adjustment Programmes (IMF, World Bank) eroding the welfare state.<\/td>\n<\/tr>\n<tr>\n<td><span class=\"n-term\">Climate injustice<\/span><\/td>\n<td>The South suffers most despite lower historical emissions; <span class=\"n-sch\">Sunita Narain<\/span> defends Common but Differentiated Responsibilities (CBDR).<\/td>\n<\/tr>\n<tr>\n<td><span class=\"n-term\">Diluted sovereignty<\/span><\/td>\n<td>WTO rules \u2014 TRIPS, the Agreement on Agriculture \u2014 favouring Western firms and undermining health and food sovereignty.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3 id=\"india-as-a-leader-of-the-global-south\">India as a Leader of the Global South<\/h3>\n<ul>\n<li><span class=\"n-term\">Reformed multilateralism<\/span> \u2192 <span class=\"n-sch\">S. Jaishankar<\/span> (<em>The India Way<\/em>) on reforming the WTO, the IMF, the World Bank and the UN to address the \u201cdemocratic deficit\u201d (<span class=\"n-sch\">Joseph Stiglitz<\/span>).<\/li>\n<li><span class=\"n-term\">Climate justice<\/span> \u2192 CBDR; the International Solar Alliance.<\/li>\n<li><span class=\"n-term\">South\u2013South cooperation<\/span> \u2192 the G20 presidency and the inclusion of the African Union.<\/li>\n<li><span class=\"n-term\">Alternative institutions<\/span> \u2192 BRICS as an option beyond Western-led bodies.<\/li>\n<li><span class=\"n-term\">Global public goods<\/span> \u2192 Digital Public Infrastructure \u2014 UPI shared with African states.<\/li>\n<li>The line to take \u2192 a neoliberal order marginalises the South; India consolidates leadership through equitable representation, climate justice and South\u2013South cooperation.<\/li>\n<\/ul>\n<div class=\"n-next\"><a href=\"\/psir\/notes\/transnational-actors-and-collective-security\/\"><em>Previous<\/em><b>Transnational actors and collective security<\/b><\/a><span><\/span><\/div>\n<p><\/main><\/p>\n<aside class=\"n-rail\">\n<h4>On this page<\/h4>\n<p><a href=\"#the-world-capitalist-economy-phases\">The World Capitalist Economy \u2014 Phases<\/a><a href=\"#dependency-world-systems-and-the-global-south\">Dependency, World-Systems, and the Global South<\/a><a href=\"#india-as-a-leader-of-the-global-south\">India as a Leader of the Global South<\/a><\/aside>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>World capitalist economy and globalisation for the UPSC PSIR optional \u2014 PSIR Notes \u203a II-A Comparative Political Analysis and International Politics \u203a World capitalist economy and g<\/p>\n","protected":false},"template":"","meta":{"jetpack_post_was_ever_published":false,"fx_note_key":"II-A.6.4","fx_note_sec":"II-A","fx_note_point":"6","fx_note_desc":"World capitalist economy and globalisation for the UPSC PSIR optional \u2014 PSIR Notes \u203a II-A Comparative Political Analysis and International Politics \u203a World capitalist economy and g","footnotes":""},"class_list":["post-3555","psir_note","type-psir_note","status-publish","hentry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/psir_note\/3555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/psir_note"}],"about":[{"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/types\/psir_note"}],"version-history":[{"count":1,"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/psir_note\/3555\/revisions"}],"predecessor-version":[{"id":3743,"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/psir_note\/3555\/revisions\/3743"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/media?parent=3555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}