Industrialized states are both politically and economically powerful than the non-industrialized states. The structure of the international system is economically determined. It consists of the core and the periphery. The core include the developed countries with United State as the most powerful state followed by others such as Russia, China, Japan, France, Germany, Europe and Britain. The periphery include the developing countries such Latin America, Asia and Africa (Jahn 2006). The international system is an integrated capitalist system which seeks for capital accumulation.
In their quest of power, the developed countries have made their way into the developing countries in order to incorporate them into the capitalist system so that they can exploit their natural resources. They have successfully done this by use of political consultants, missionaries, experts and Transnational Corporations (TNCs). Marxism theories of imperialism also help us understand the rise of monopolies in developed countries and their extension into global cartels. The concentration of capital and productive forces in the hands of a few countries has led to creation of large monopolies that dominate the world economy.
Imperialism forms the monopoly stage of capitalism. The accumulation of capital and means of production has also led to the development of bank capital with industrial capital. This has led to formation of a new financial oligarchy referred to finance capital. As a result, leading economies are no longer exporting goods but capital. The intense international competition over land and markets can be understood in terms of capital accumulation manifest in capitalistic societies. The creation of classes is the principal actor in international relations and worldwide politics, with the developed countries being the major actors (Hobden and Richard 2001).
The increase in foreign investments in developing countries is another feature of the contemporary international system that can be explained by Marxist theories of imperialism. Most developed countries have moved on and invested in developing countries in their search for cheap labor and natural resources so that they can make more profit and accumulate capital. Foreign investments in developing countries have not led to development of these countries as it had being speculated. This is because they are exploitative in nature as they have tended to pay low wages and salaries to workers and have over-exploited natural resources in these countries.
Developed countries make all the decisions concerning investment in these countries. The developing countries do not have a say when it comes to foreign investments. They also plough back into their country the profit which they get rather than use it to develop these countries. The developed countries have thus developed at the expense of the developing countries. The process of capitalism therefore helps us explain the emergency of the developed, developing and undeveloped countries (Hobden and Richard 2001).
The formation of modern nation-states within the international system can best be explained by Marxist theories of imperialism. In this modern era, the ruling class which constitutes the state, does not only own the means of production but also controls them. It uses non-economic institutions, such as the media, educational systems, religion, sports and grants, to uphold its power and position. Nation-states strive to improve their position in the hierarchy of the price system by raising the effectiveness of capital exploitation operating within their boundaries.
The sovereign state has therefore served as an active contributor to the formation of social relations which leads to development of class struggles. These have promoted disorganization of labor worldwide. Modern states have served to maintain the exploitative system of the capitalist society. They act just like the bourgeois class in protecting their own interests and in facilitating economic expansion.
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