ABSTRACT
This chapter examines the development of the capitalist world system after World War II, building a new framework of capitalist development. It argues that Akamatsu's flying geese theory is a proto-dynamic comparative advantage theory, and that Minsky's intermediate and open financial instability theory is indispensable to analyze capitalist development where finance plays crucial roles. The chapter examines long waves and super long waves using the new flying geese theory. It follows the flying geese pattern of industrialization and re-emergence of Asia after World War II, and examines new dynamic industries comparing Japanese closed integral architecture and US open modular architecture. The chapter answers the three questions: why did a structural crisis occur in East Asia in the 1990s, is an open modular architecture of global value chain (GVC) with core chipsets a new dynamic industry, and is the world financial crisis since 2007 a systemic crisis of the present capitalist world system?.
