Topic summary
Prebisch-Singer thesis
Extracted from the Wikipedia article Prebisch–Singer hypothesis.
Theory
This theory implies that the very structure of the global market is responsible for the persistent inequality within the world system. This provides an interesting twist on Wallerstein's neo-Marxist interpretation of the international order which faults differences in power relations between 'core' and 'periphery' states as the chief cause for economic and political inequality (However, the Prebisch-Singer thesis also works with different bargaining positions of labour in developed and developing countries).