Global Core & Periphery
IB HL
The Global Economy – Basic features
• Single World market – Producers produce to
exchange rather than use. Price is determined on a
global scale.
• 3 Geographical tiers – Core / Semi Periphery /
Periphery.
• Temporal Trends – Growth then stagnation.
Hegemony (dominance of one country UK > USA >
Japan > China?)
The Global Economy – Basic features
• Integration or rejection – Reaction of societies, eg
Islamic fundamentalism.
• States – States function to protect their interests,
their companies’ and peoples’ interests from the
global economy.
• Alternative adaptations – How do nation states
adapt to the global economy? Export led,
protectionism, isolationism, CPE, Free market.
The spatial pattern of global
interactions
GNI in 2005
Worldmapper.org
Main trade flows
are between
Europe, North
America and East
Asia.
Car Exports 2002
Earnings from passenger car exports make up 5.3% of all earnings made from international exports.
Japan and Germany together make 61% of all net profits (US$) on international car exports.
Japanese car brands include Toyota, Nissan, Suzuki, Subaru, Honda, Mitsubishi and Mazda. German
car brands include Audi, BMW, Mercedes, Volkswagen and Porsche.
Internet Users 2002
During the 12 years from 1990 to 2002, people using the Internet increased in number by 224 times. By 2002
there were 631 million Internet users worldwide.
The distribution of Internet users worldwide has changed remarkably over just a dozen years. In 1990 Internet
users were mainly found in the United States, Western Europe, Australia, Japan and Taiwan. By 2002 people
living in Asia Pacific, Southern Asia, South America, China and Eastern Europe were notable Internet users. A
not insignificant number of Internet users are also shown to be in Northern Africa, Southeastern Africa and the
Middle East.
Finance and Insurance net exports 2002
Of all the net finance and insurance services exports in the world, 99% of the profit flows to territories in
Western Europe. Despite this, almost half of the 24 territories in Western Europe have no net finance and
insurance services exports. The main exporting territories for these services are the United Kingdom,
Switzerland, Germany and Luxembourg.
Global core and periphery
Global Economic Triangle of the CORE
North America
Western Europe
East Asia
High Income Countries.
Main trade flows are between these three areas.
Countries in this core have diversified economies, with
high output, high purchasing power and large domestic
markets.
Outside this core, the global periphery is a location of
cheap raw materials or cheap manufacturing or a market
for the core to “dump” their surplus products.
Wide range of countries SEMI PERIPHERY
High and Middle Income countries.
First waves of NICs – South Korea, Taiwan, Hong Kong,
Singapore.
Second wave of NICs or RICs – eg Malaysia, Mexico, South
Africa.
BRICs – Brazil, Russia, India, China.
Resource exporting countries, Recently and Newly
Industrialised Countries, Former Socialist Countries, Poorer
European Countries.
The excluded PERIPHERY
Lower Middle Income Countries and Low Income
Countries.
Mainly Africa.
Small domestic markets, lack of infrastructure,
population increase, low economic output, low levels of
economic diversification, high agricultural population.
Influential global cities are the hubs/nodes of the
global interactions in the global economy
The Top 10 Most Global Cities
1. New York
2. London
3. Tokyo
4. Paris
5. Hong Kong
6. Chicago
7. Los Angeles
8. Singapore
9. Sydney
10. Seoul
A T Kearney Global Cities Index 2010
http://www.atkearney.com/index.php/Publications/global-cities-index.html
Ranking based on indicators
in the following;
•
Business activity
•
Human capital
•
Information exchange
•
•
Cultural experience
Political engagement
The global economy is dynamic
For example the spatial decentralisation (diffusion) of
many economic activities.
Until recently this was seen as the diffusion of manufacturing
away from the Core to Semi Peripheral areas.
Now we can observe diffusion in services and an increasing
decentralisation of coordination and control operations.
What does this cartoon say?
The disparity of wealth between
core and periphery countries is
staggering, with 15% of the
global population enjoying 75%
of the world's annual income.
General Principal is
• As general prosperity grows worldwide,
the majority of that growth is enjoyed by a
'core' region of wealthy countries despite
being severely outnumbered in population
by those in a 'periphery' that are ignored.
What causes this?
• there are many barriers, physical and
political, that prevent the poorer citizens of
the world from participating in global
relations.
Characteristics of the Core
• transnational links,
• modern development (i.e. higher wages, access
to healthcare, adequate food/water/shelter)
•
•
•
•
•
scientific & technological innovation,
economic prosperity.
highly industrialized
rapidly-growing tertiary sector.
EG MEDC!!
Characteristics of the Periphery
• extreme poverty and a low standard of
living.
• Health care is non-existent in many
places,
• less access to clean water
• poor infrastructure
• Dependence upon the core
• EG LEDC !
The Semi - Periphery
• A political label which referred to countries
suffering struggles and social changes
during the 1980s & 1990s
• E.G LATIN AMERICA & EASTERN
EUROPE
Colonial Link
• Essentially, raw materials were extracted from
the periphery and slave labor, sold to core
countries where they would be consumed or
manufactured, and then sold back to the
periphery.
• Advocates of this theory believe that the damage
done by centuries of exploitation have left these
countries so far behind that it is impossible for
them to compete in the global market.
Most Likely to…..
CORE OR PERIPHERY
•
•
•
•
•
•
•
•
•
•
•
•
•
Low birth rate
High death rate
Longer life expectancy
Lower natural increase
Lower proportion of population under 15
Higher proportion of population over 65
Low percentage employed in agriculture
Low energy consumption
Low % living in urban areas
High car ownership / 1000
High T.V. ownership /1000
Low population number per doctor
High adult literacy
Activities
• Using The Core And Periphery Worksheet
answer the following…
1.What is the general principle of the Core
And Periphery?
2.What caused this?
3.What are the characteristics of the Core
and Periphery areas?
4.What is the Semi-Periphery?
Activities
• Using Geography For The IB Diploma:
Global Interactions P14-17, answer the
following…
1.Define Economic Core and Economic
Periphery.
2.Why should the world now be considered to
having Core, Periphery, AND Semi-Periphery
areas?
3.Using Figure 2 (P15) describe the
characteristics of the 3 types of countries.