Entire Volume 17 issue 1 - Journal of World-Systems Research ...

61 JOURNAL OF WORLD-SYSTEMS RESEARCH
been obtained from the market, as long as the buyer is primarily concerned with their use values
rather than their exchange values.
Economic life, or the market, involves the exchange or circulation of goods according to
set rules between relatively small buyers and sellers:
The economy, in the sense in which I wish to use the word, was a world of
transparence and regularity, in which everyone could be sure in advance, with the
benefit of common experience, how the processes of exchange would operate.
This was always the case on the town market-place … And it was the case too,
even if the distance was greater, for any regular trade of which the origins,
conditions, routes and markets were fixed. (1982:455)
He acknowledges that there are two different senses of the word market: “On one hand it is used,
in a very loose sense, of all types of exchange that go beyond self-sufficiency …” Thus we have
urban markets or a gold market (1982:223). “On the other hand, the word ‘market’ is often
applied to a rather large broad form of exchange, also known as the market economy …”
(1982:223-4). “Historically, one can speak of a market economy, in my view, when prices in the
markets of a given area fluctuate in unison …” (1982: 227). This, Braudel thinks, has been the
case in Europe since the twelfth century. The latter use of the word is what he is referring to when
he speaks of economic life. Finally, because this market system was freely competitive and run
by small traders and merchants, only small profits were earned; Braudel refers to it as “microcapitalism”
(1981: 562).
The top layer of Braudel’s schema is the zone of capitalism:
[T]he agents and men involved were not the same … the rules of the market
economy regarding, for instance, free competition as described in classical
economics, although visible at some levels, operated far less frequently in the
upper sphere, which is that of calculation and speculation. At this level, one
enters a shadowy zone, a twilight area of activities by the initiated which I
believe to lie at the very root of what is encompassed by the term capitalism: the
latter being an accumulation of power (one that bases exchange on the balance of
strength, as much as, or more than on the reciprocity of needs) a form of social
parasitism … (1982:22)
Braudel refers to it as the “anti-market” because the laws of the market do not apply here, or they
apply only rarely. Consequently, this is the sphere in which the large profits are made. 2
A
defining characteristic of capitalism is its flexibility and adaptability. Opportunities for huge
profits opened up at different times, in different places, and in different spheres of economic
activity. Capitalists had to be ready to take advantage of the opportunities when they arose: “the
characteristic advantage of standing at the commanding heights of the economy … consisted
2
For a detailed discussion of the distinction between the market and capitalism, see Wallerstein (2001:
207-17).