Global Economi

c Patterns

Prepared by: Arjen E. David

GLOBAL ECONOMIC PATTERNS

• One pattern evident in all measures of economic development is the division of the world’s countries into a global economic Core, Semi-periphery, and Periphery. This is called the Core-periphery Model.

a model of the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core region.

CORE• Core countries are dominant capitalist

countries that exploit peripheral countries for labor and raw materials.

• They are strong in military power and not dependent on any one state or country.

• They serve the interests of the economically powerful.

•They are focused on higher skill and capital-intensive production. •Core countries are powerful, and this power allows them to pay lower prices for raw goods and exploit cheap labor, which constantly reinforces the unequal status between core and peripheral countries.

•Example: includes most of Europe, Japan, the United States, Canada, Australia, and New Zealand.

PERIPHERY•Periphery countries fall on the other end of the economic scale. •Periphery countries are commonly also referred to as third-world countries.•These countries lack a strong central government and may be controlled by other states.

• These countries export raw materials to the core countries, and they are dependent on core countries for capital and have underdeveloped industry.

• These countries also have low-skill, labor-intensive production, or, in other words, cheap labor.

• Example: includes Africa, except for South Africa, and parts of South America and Asia.

SEMI-PERIPHERY• Semi-periphery countries fall in the middle of the

economic spectrum. • These countries share characteristics of both core

and periphery countries. • These are core regions in decline or periphery

regions attempting to improve their economic position.

• These countries are sometimes exploited by core countries, but they also may exploit periphery countries themselves.

• Semi-periphery are newly industrialized countries with median ‘standards of living, such as Chile, Brazil, India, China, and Indonesia.

• Semi-periphery countries offer their citizens relatively diverse economic opportunities but also have extreme gaps between rich and poor.

• For example, India is largely dependent on core countries for capital, but India has a growing technology industry and an emerging consumer market.

List of current Core Countries• The following are core according to Dunn,

Kawana, Brewer (2000).

• The following are core according to Dunn, Kawana, Brewer (2000).

List of current Semi-periphery Countries

• The following are semi-periphery countries according to Dunn, Kawana, Brewer (2000).

•Argentina•Brazil•China•Hong Kong•India•Indonesia•Iran

•Israel•Mexico•Singapore•South Korea•South Africa•Taiwan

And this is the semi-periphery listing according to Babones and Alvarez-Rivadulla (2007), who note that this list is composed of countries that "have been consistently classified into a single one of the three zones [core, semi-periphery or periphery] of the world economy over the entire 28-year study period"

•Belize•Brazil•Chile•Fiji•Hungary•Jamaica•Malaysia•Mexico

•Panama•Seychelles•South Africa•Tunisia•Turkey•Uruguay

List of current Periphery Countries

• Periphery countries as listed in the appendix of "Trade Globalization since 1795: waves of integration in the world-system" that appeared in the American Sociological Review(Dunn, Kawana, Brewer (2000)).

• And this is the periphery listing according to Babones and Alvarez-Rivadulla (2007), who note that this list is composed of countries that "have been consistently classified into a single one of the three zones [core, semi-periphery or periphery] of the world economy over the entire 28-year study period".

Immanuel Maurice Wallerstein

• born September 28, 1930• is an American

sociologist, historical social scientist, and world-systems analyst,

• arguably best known for his development of the general approach in sociology which led to the emergence of his World-System Theory.

World Systems Theory• The world systems theory, developed by sociologist

Immanuel Wallerstein, is an approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited.

• Just like we cannot understand an individual's behavior without reference to their surroundings, experiences, and culture, a nation's economic system cannot be understood without reference to the world system of which they are a part.

The main characteristics of this theory, which will be discussed in more detail throughout the lesson, are:

• The world systems theory is established on a three-level hierarchy consisting of core, periphery, and semi-periphery areas.

• The core countries dominate and exploit the peripheral countries for labor and raw materials.

• The peripheral countries are dependent on core countries for capital.• The semi-peripheral countries share

characteristics of both core and peripheral countries.• This theory emphasizes the social

structure of global inequality.

SOURCE• http://study.com/academy/lesson/world-syste

ms-theory-core-vs-peripheral-societies.html• https://en.wikipedia.org/wiki/World-systems_

theory