This paper discusses how the economic surplus concept can be used to analyse the constraints imposed by the world system on economic development. It argues that the interaction of foreign interests with domestic ruling class interests influences the allocation of surplus in underdeveloped social formations by shaping the entire domestic incentive and constraint environment. The central problem of development then is to replace these constraints with national development priorities. Empirical analysis is based on an estimation of the surplus for Turkey for 1980-96.

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January 31, 2004.