The result is a protective and regulative system that rewards the hegemonic leader and participating countries. Hegemony contains the seeds of its own destruction. The hegemonic leader becomes a rentier country exporting capital rather than goods because production costs eventually become much cheaper in peripheral and semiperipheral countries. One reason for this is increasing military spending needed to maintain its role as the world s policeman. Increased military spending diverts investment in new infrastructure for nonmilitary goods.
Old equipment adds to higher costs and the flight of capital to the periphery.
Even worse, the dynamics of this process causes an acceleration of capital movement as the hegemonic country wanes. The description of the framework to this point has covered its external or international element. It has an internal one as well. The hegemonic country develops an elite that takes control of policy making. This gives them a broad view of events that cows career bureaucrats whose views are narrower.