Journal of World-Systems Research Volume XVII, Number 2, 2011 A Journal of the Political Economy of the World-Systems Section of the American Sociological Association BOARDS AND STAFF EDITORS Andrew Jorgenson—University of Utah Edward Kick—North Carolina State University FOUNDING AND FORMER EDITORS Chris Chase-Dunn (founding and former editor)—University of California Riverside Wally Goldfrank (former editor)—University of California Santa Cruz BOOK REVIEW EDITOR Tom Hall—Depauw University MANAGING EDITOR Laura McKinney—North Carolina State University TECHNICAL EDITOR Gregory Fulkerson— State University of New York, Oneonta EDITORIAL BOARD Janet Abu-Lughod—New School of Social Research Syed Farid Alatas—National University of Singapore Salvatore Babones—University of Pittsburgh Jennifer Bair—University of Colorado, Boulder Kenneth Barr—Institute for Research on World-Systems Jason Beckfield—Harvard University Manuela Boatca—Catholic University of Eichstätt-Ingolstadt Patrick Bond—University of Kwazulu-Natal Tom Burns—University of Oklahoma Beth Caniglia—Oklahoma State University Bill Carroll—University of Victoria Brett Clark—North Carolina State University Wilma Dunaway—Virginia Polytechnic Institute & State University James Fenelon—California State University, San Bernardino Paul Gellert—University of Tennessee, Knoxville Vincentas Giedraitis—Vilnius University John Gulick—Hanyang University Alf Hornborg—University of Lund Asafa Jalata—University of Tennessee, Knoxville Marina Karides—Florida Atlantic University Jeffrey Kentor—University of Utah Su Hoon Lee—Kyungnam University April Linton—University of California, San Diego Omar Lizardo—University of Notre Dame Bruce London—Clark University Matthew Mahutga—University of California, Riverside Bill Martin—State University of New York, Binghamton Jason Moore— University of Lund Timothy Patrick Moran—State University of New York, Stony Brook Alejandro Portes—Princeton University Thomas Reifer—University of San Diego James Rice—New Mexico State University Timmons Roberts—College of William and Mary Stephen J. Scanlan—Ohio University John Shandra—State University of New York, Stony Brook Leslie Sklair—London School of Economics and Political Science Jon Shefner—University of Tennessee, Knoxville Jackie Smith—University of Notre Dame William R. Thompson—Indiana University Michael Timberlake—University of Utah David Wilkinson—University of California, Los Angeles Richard York—University of Oregon ASSOCIATE EDITORS Richard Appelbaum—University of California, Santa Barbara Albert Bergesen—University of Arizona Volker Bornschier—University of Zurich Chris Chase-Dunn—University of California, Riverside Peter Evans—University of California, Berkeley Shelley Feldman—Cornell University Scott Frey—University of Tennessee Jonathan Friedman—University of Lund Harriet Friedmann—University of Toronto Gary Gereffi—Duke University Wally Goldfrank—University of California, Santa Cruz Patrick McGowan—Arizona State University Phil McMichael—Cornell University John Meyer—Stanford University Bill Robinson—University of California, Santa Barbara Robert Ross—Clark University Saskia Sassen—Columbia University Beverly Silver—Johns Hopkins University David Smith—University of California, Irvine Alvin So—Hong Kong University of Science and Technology Peter Taylor—Loughborough University Immanuel Wallerstein—Yale University TABLE OF CONTENTS REGULAR SECTION ARTICLES 279 Within-Country Inequality and the Modern World-System: A Theoretical Reprise and Empirical First Step Matthew C. Mahutga, Roy Kwon, and Garrett Grainger 308 Global Commodity Chains & World Income Inequalities: The Missing Link of Inequality & the “Upgrading” Paradox Benjamin D. Brewer 328 The International Finance Corporation and Forest Loss: A Cross-National Analysis John M. Shandra, Eric Shircliff, and Bruce London 353 Neoliberalism, Grievances, and Democratization: An Exploration of the Role of Material Hardships in Shaping Mexico’s Democratic Transition Jon Shefner and Julie Stewart 379 Transnational Class Formation? Globalization and the Canadian Corporate Network Jerome Klassen and William K. Carroll 403 Global Sushi: The Political Economy of the Mediterranean Bluefin Tuna Fishery in the Modern Era Stefano B. Longo 428 The Capitalist World-System and U.S. Cold War Policies in the Core and the Periphery: A Comparative Analysis of Post-World War II American Nation-building in Germany and Korea Y. Hugh Jo SPECIAL SECTION: “FLOWS OF MONEY AND PEOPLE IN THE WORLD-SYSTEM” guest edited by Terry-Ann Jones and Eric Mielants ARTICLES 446 Introduction to the Special Section Terry-Ann Jones and Eric Mielants 447 The Limits to Dollarization in Ecuador: Lessons from Argentina Matias Vernengo and Matthew Bradbury 463 Remittances in Central America: Whose Money Is It Anyway? José Luis Rocha 482 Capital Movements and Environmental Harms Christopher Dick and Andrew K. Jorgenson 498 Interlocking Corporate Directorates and the Global City Hierarchy Jeffrey Kentor, Adam Sobek, and Michael Timberlake 515 The Effects of Foreign Bank Participation on the Turkish Banking System and Crisis Suleyman Degirmen BOOK REVIEW ESSAYS 532 Understanding Ancient Interactions Edward Schortman 538 Strange Parallels: Patterns in Eurasian Social Evolution Peter Turchin BOOK REVIEWS 553 The Ecological Rift: Capitalism’s War on the Earth Foster, John Bellamy, Brett Clark, and Richard York Reviewed by: Kirk S. Lawrence 557 Illiberal Politics in Neoliberal Times: Culture, Security and Populism in the New Europe Berezin, Mabel Reviewed by: Timothy M. Gill 559 Unveiling Inequality: A World-Historical Perspective Roberto Patricio Korzeniewicz and Timothy Patrick Moran Reviewed by: Ho-fung Hung 561 The Empire Project: The Rise and Fall of the British World –System, 1830-1970 Darwin, John Reviewed by: Gary Maynard 564 Developing Partnerships: Gender, Sexuality and the Reformed World Bank Bedford, Kate Reviewed by: Claire Laurier Decoteau 567 Dying Empire: U.S. Imperialism and Global Resistance Shor, Francis Reviewed by: Jackie Smith 569 The European Union and Global Social Change: A Critical Geopolitical-Economic Analysis Böröcz, József Reviewed by: Zsuzsa Gille WITHIN-COUNTRY INEQUALITY AND THE MODERN WORLD-SYSTEM: A THEORETICAL REPRISE AND EMPIRICAL FIRST STEP Matthew C. Mahutga Department of Sociology University of California, Riverside [email protected] Roy Kwon Department of Sociology University of California, Riverside [email protected] Garrett Grainger Department of Sociology University of Wisconsin, Madison [email protected] ABSTRACT This article calls for a renewed investigation of the world-system position—inequality link. We begin by outlining two general types of causal mechanisms through which a country’s position in the world-system should impact the distribution of income within it. The first type impacts inequality indirectly by conditioning the developmental process, and call for conceptual and empirical models of inequality that account for the link between world-system position and economic development. The second type impacts inequality directly through processes that are more or less unobservable because they change over time or belie cross-nationally comparative indicators, and can thereby be captured by direct measurements of world-system position itself that stand in for varying or unobservable causal processes. We then analyze five measures of world-system position to identify which, if any, provides the most useful association with income inequality. Our findings suggest that the classic measure of Snyder and Kick (1979) provides the strongest association. We conclude by suggesting fruitful directions for future research. INTRODUCTION General sociological theories of within country inequality can be roughly divided into two types. The first type begins with independent nation-states as the unit of analysis, between which differential stages along a relatively homogenous developmental path explain differences in within-country inequality. The second type begins with an interdependent international division of labor and anarchic world-polity as the appropriate unit of analysis, within which cross-national differences in income inequality are a function of positional variation in the hierarchically ordered world-system. Both schools of thought have produced a large body of empirical work in Copyright ©2011, American Sociological Association, Volume XVII, Number 2, Pages 279-307 ISSN 1076-156X WITHIN-COUNTRY INEQUALITY AND THE WORLD-SYSTEM 280 sociology. Within this body of work, developmental processes have been shown to bear fairly robust relationships with income inequality (Nielsen 1994; Nielsen and Alderson 1995; Lee 2005). On the other hand, the association between world-system position and various forms of dependency have been much disputed, and empirical tests of the world-systems perspective have become infrequent (e.g. Alderson and Nielsen 1999; Beer and Boswell 2002; Lee et al. 2007; Nolan 1983; Weede and Kummer 1985). Yet, our review of the literature suggests that a renewed investigation of the world- system position—inequality link is warranted, and this article builds a foundation for such an endeavor by accomplishing two goals. One of our immediate goals is to re-introduce world- systemic dynamics as a principal explanation for cross-national variation in within-country inequality. Answering the call for world-systems scholars to pay better attention to the country level processes through which world-system dynamics impact inequality