Core and Periphery – Economic Model of the World
The world is a core - periphery
dichotomy. This idea is called
the World Systems Theory.
It was developed by USA
Sociologist Immanuel
Wallerstein between 1974 and
1989.
Wallerstein is generally critical
of the global capitalist
economy. He suggests that
differences in political and
capital power, as well as
civilization development
cannot be solved by the
expansion of the world’s
capitalist economy.
Core and Periphery – Economic Model of the World
In this theory, Core Countries (e.g.,
Europe) form an “economic core”
around which the rest of the world
developed.
The Periphery Countries typically
were controlled by the Core
Countries. The periphery feeds
materials, natural resources and
labour to the core.
In summary, a core/periphery
hierarchy consisted of "advanced"
economically developed and
powerful states dominating and
exploiting "less developed"
peripheral regions
Core and Periphery – Economic Model of the World
From this idea, four types of regions
or groups of countries were
identified.
• Core
• Semi-periphery – manufacture
goods with high value, exist outside
of core but exploit the periphery
• Periphery – owned by the core,
supplies and all surpluses to the core,
weak or no central government,
cheap labour
• External – Outside the world’s
economy.
Core and Periphery – Economic Model of the World
Core Characteristics
Core countries have (1) high levels of
development, (2) a capacity at
innovation and (3) a convergence of
trade flows.
The core has a level of dominance over
the periphery which is reflected in trade
and transportation.
Accessibility is higher within the
elements of the core, and most high
level economic activities and
innovations are located at the core.
Core and Periphery – Economic Model of the World
Core Characteristics
In summary, the major characteristics of
core areas are:
• Major centres of growth
• Highly industrial, social and economic
development
• Urban - industrial based
• Centres of decision-making (political and
financial)
• Attract workers, investment and raw
materials
• Skilled / trained labour force
Core and Periphery – Economic Model of the World
Characteristics of Periphery
Periphery countries typically:
• Have marginal geographical locations
relative to world economies
• Offer poor job opportunities
• Have lower standards of living
• Over-dependant on the primary resource
sector
• Few major centres of urbanization
• Suffer from out-migration
Core and Periphery – Economic Model of the World
NOTE
Core areas can change through time.
For example, areas that once were part
of the core may now be disadvantaged
due to the loss of their resources that
were the initial attraction. Once a core,
Cape Breton has declined due to the
fall of coal mining
The Core-Periphery also exists on both
national and international levels. Most
countries have a national core, which
is usually centred around a large,
industrial… sometimes capital…city
(e.g., Toronto, London, Paris).