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until today, while the remainder has suffered relative, if not absolute, immiseration (Wallerstein 1995a: 98-101). While the Dutch enjoyed a greater (monopoly) control of the region, particularly the Malay archipelago, they could never challenge the power of the Mughal empire in mainland India (Parry 1963: 242-257). The economic cycle of the feudal economy had reached its optimum level; afterwards the economy began to shrink. It does so through a set of related elements: It controls a strategic commodity that becomes the bedrock of its economic power, it innovates in some crucial way the economic process, it enlarges the geographic foundations of the capitalist world-system, and, not least, it provides. By controlling the costs of finished products, merchants could extend their profit margin and control the internal markets. These areas lacked strong central governments or were controlled by other states, exported raw materials to the core, and relied on coercive labor practices. This was the first time that an economic system encompassed much of the world with links that superseded national or other political boundaries. The financial crisis of 1780-83 ended Amsterdams supremacy in world finance, which was taken over by London (Prada 1966b: 145-146). This had (neo-functionalist) spill-over effects, for instance influencing the creation of the European Coal and Steel Community (Middlemas 1995: 1-36, Archer 1994: 24-27). Once again, and on a grander scale, one capitalist class had successively promoted and financed, monitored and profited from, and, in the fullness of time, withdrawn from, a commercial expansion that encompassed a multiplicity of trade networks. This massive increase of geographic scale was based on spices (mostly Asian pepper, controlled by the Portuguese) and silver (from America, controlled mostly by the Spanish) as strategic commodities, and was carried through by the Christian Iberian empires.
The economic cycle of the feudal economy had reached its optimum level;.
However, this entailed the expansion of the geographical size of the world.
World-systems theory is a multidisciplinary, macro-scale approach to world history and social.
Wallerstein argues that Europe moved towards the psychological Trauma of Facial Disfigurement establishment of a capitalist world economy in order to ensure continued economic growth. The fall of the Berlin wall can be taken as the symbolic end of the Cold War, and thus also as the terminal crisis of the US SCA. This is a worldwide social division of labour, with a geographic hierarchisation of the structure of production processes. Further, early seventeenth-century Amsterdam became the centre of the transition from the Renaissance to the Enlightenment (Arrighi 1994: 45-46, 135). With the independence of the Latin American countries, these areas as well as previously isolated zones in the interior of the American continent entered as peripheral zones in the world economy. The Cold War broke the impasse, first with the Marshall Plan and then with massive rearmament following the Korean war. Good examples of declining cores that became semi-peripheries during the period under study are Portugal and Spain. Economically, these regions retained limited but declining access to international banking and the production of high-cost high-quality manufactured goods. The coming crisis of the US regime was signalled between 19 in three distinct and closely related spheres. Indeed, capitalism only triumphs when it becomes identified with the state, when it is the state (Braudel 1985: 68). Within Arrighis framework (Arrighi 1994 such a starting point of a systemic cycle of accumulation of capital (SCA) can be located in the northern Italy city-states of the second half of the fourteenth century. 14 Arrighi considers that this material expansion/financial expansion cycle does not constitute an SCA, which must be led in its entirety by a single agency.
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