The evolution of the European economic core area Economic Geography I. International Business bachelor study programme (BA) Spring term 2015/2016. CUB Centre of Economic Geography and Futures Studies dr. Jeney László Senior lecturer

2 The changing global position of the core areas (Triad)

3 Alternative definitions of the core areas Cold War: First and Second World – –Not up to date W. Brandt: The Rich North, The Poor South – –Brandt line, 1980s – –North Asia: rich? – –Australia: Northern? Triad – –Position of Australia? High income countries (Worldbank, IMF) – –Annually changing Developed World

4 Economic core regions Its state of development: in the forefront of the age Its state of development: in the forefront of the age Its development is autonomic and organic Its development is autonomic and organic –Self-modernization: derived from the inner structure and the inner motivation of the society –Recognition of natural and human rules  getting the new resources  ensure a more higher state of satisfaction of needs

5 Differences amoung the core areas of the world economy aspectsEuropeEast AsiaN. AmericaAustralia–O. Ancient times Developed culturesLagging tribal cultures Greek- Roman antecendent More 1000 years old civilizations ColonizationGeopgraphic Discoveries, West Europe Isolation (China: semi-colony) British colonies Early, having col. (+econ.) Late colonization Economic macroregion Europe – Africa Far EastThe Americas Europe–Afr.  Far East Being core from Discoveries, industrial rev Ancient cult., Postwar per. Late 19th century Success products Medicines, machines High-tech (computer, chip, robot) + application of IT mining, agriculture

Basic information on the core areas of the world economy Area Km 2 Population persons GDP PPP Per cap GDP PPP Export US $ Import US $ EU 4,3 mn WR7 490 mn WR3 14,82 bn WR WR31 1,95 bn WR1 1,69 bn WR2 USA 9,8 mn WR3 310 mn WR4 14,66 bn WR WR10 1,29 bn WR3 1,94 bn WR1 Japan 380 th WR mn WR11 4,31 bn WR WR28 0,76 bn WR4 0,64 bn WR4 China 9,6 mn WR mn WR1 10,09 bn WR WR100 1,58 bn WR2 1,33 bn WR3

7 TNCs with the largest income in the world (Fortune: Global500) Growth of East Asia, decline of North America 353 industrial companies with the largest trade of the world (Rebitzer, D. W. 1995) – –1956: 77% Am, 23% Eu  1993: 36% Am, 32% Eu, 26% Japan

8 Geographic concept of Europe

9 What does the European core of the world economy mean? Definition of Europe differs – –Geographically – –Politically

10 Phisical geographic borders of Europe Is Europe an own continent? – –Phisical geography: not a sharp borderline towards Asia – –Geology: Eu and Asia is one huge continent, Eu. is part (peninsula) of Asia/Eurasia (Eurasian plate) – India on the contrary: not part of Asia  Indian plate  (Indian subcontinent) Borders of Europe (more clear-cut: S, W, N, more debated: E) – –South: Mediterranean Sea – –West: Atlantic Ocean – –North: Arctic Ocean – –East: just in the 19 th cent. (Humboldt): Ural Mountains (+ Ural River, Caspian Sea, Caucasus Mountains, Black Sea)

11 Human geographical borders of Europe: hard to define the transcontinental countries European borders fall into the line of state borders Transcontinental countries: partly spread to Asia too – –Russia (European area 29%, pop. 72%) – –Kazakhstan (rather Asian) – –Turkey (European area 3%) – –Georgia (rather European) – –Azerbaijan (rather European) Physical geographically totally Asian countries with European orientation – –Cyprus (partly Christian, member of EU) – –Armenia (Christianity)

12 Cultural and social criterions of Europeanism according to Jordan, T. G. (1996) Arbitrary criterions with arbitrary limit values 1. 1.Religion: Christian over 80% 2. 2.Language: Indo-Europeans over 80% 3. 3.Anthropological character: white population over 90% 4. 4.Health: infant mortality under 1% 5. 5.Developed economy: per capita GDP over $ 6. 6.Education: illiteracy under 10% 7. 7.Developed transport network: road density over 400km/km Industrial/tertiary employment structure: share of agricultural workers under 15% 9. 9.High urbanization: urban residents over 50% Stable population number: natural increase under 1% Parliamentary democracy: before 1980

13 Political borders of Europe: membership of European integrations Council of Europe: – –European frontiers fall into the line of state borders – –Wider: whole territory of geographical Europe is included (expect for Western part of Kazakhstan) – –Spread also to Asia (Siberia, Caucasus Mountains, Anatolia, Cyprus) European Union – –Only 28 members – –The overseas dependencies also joined (e.g. French Guiana from South America) – –Greenland: entered as dependency of Denmark, but separated in 1983

Evolution of Europeanism till the WW II

15 Appearance of the concept of Europe In the early ancient times – –Name of Europe: Phoenician ‘ereb’ (=darkness, sunset) – –8 th century BC: 1st mention in Greek mythology – –At the beginning: Europe ≈ Thrace + Macedonia – –6 th century BC: from Gibraltar to Caucasus Mts. – –Herodotus, Hippocrates: political, cultural values (opposite to Asia, Persian Empire)

16 Europe under the Roman Empire Roman Empire – –1 st big great political unit spreading to significant parts of Europe – –Beyond the ‘limes’ (visible borderline): Barbaric lands (≈not Europeans) – –But Middle East, North Africa also belonged to the empire  concept of Europe turned to pale – –Classic Greek-Roman culture: part of the European intellectual heritage (Christianity, law, arts, Latin culture)

17 Middle Ages: Europeanism = Christian religion and ethics Early Middle Ages: only Western (Catholic) Christianity – –6 th –7 th century (Isidore, bishop of Seville): Europe = former Western Roman Empire 8 th –9 th century: Europe = Carolingian (Frankish) Empire – –2 nd big great political unit spreading to significant parts of Europe – –Europe ~ foundation members of the European integration (EU: honours about Charlemagne) – –Borders of EC ≈ the frontier of Western Christianity (except for orthodox East Balkan: GR, CY, BG, RO) – –Opposite to the ‘heterodox’ Byzantine Empire  not European Renaissance (pope Pius II): Europe ≈ whole Christian world – –Opposite to the ‘pagan’ Ottoman Empire (crusades) – –Today also arises by the EU-accession of Turkey – –Question of the word ‘Christian’ in the European Constitution

18 Common European cultural waves Appearance of the common European identity – –15 th –16 th century, Machiavelli: common history, culture and political interest of the European nations – –Students at medieval universities from whole Europe (Latin, as common linguistic heritage) – –Humanism ≈ Europeanism  Dante: Alliances of states West European feudalist structure building bottom-up – –Slackened bondages in the ruling class – –Civil rights with economic autonomy – –Rationalism, scientific–technical achievements – –Liberty, individualism (opposite to the more community orientated Eastern cultures) But reformation: reaction against to the common Europeanism – –Breaking line: Catholic South – Protestant North – –Organizations of nation states – –Nationalism: ‘fashionable’

19 European unity ideas during the long 19th century Colonization: strong European identity – –Quantitative and qualitative development: supremacy Empire of Napoleon – –3 rd big great political unit spreading to significant parts of Europe – –Liberty, equality, fraternity = Europeanism European integration – –Mazzini, Kossuth: European Confederation – –Victor Hugo (1849): European United States (like USA)

20 Effects of European civilization on different parts of the World according to Jordan, T. G. (1996)

21 European cultural pessimism at the 20th century WW I: European nations fought against each other Instead of the former fashionable nationalism international intellectual waves (but global, not European) – –Socialism: internationalism, but on the basis of working class – –Catholicism: universal Depression after WW I – –Europeanism = agony, pessimism – –Spengler: The Decline of the West – –Jose Ortega y Gasset: mass of humans instead of Europanism

22 Pan-Europeanism at interwar period Carlo Sforza: European United States Pan-European campaign – –Richard Coudenhowe Calergi, 1923: book titled by Pan-Europe – –Hate of nations  further war – –Threat from the East: communism (military) – –Threat from the West: Americanism (economic) – –1926: 1 st Pan-European Congress Establishment of League of Nations Briand (French foreign min.): – –integrated the Pan-European approach to the League of Nations – –Suggested the establishment of an EU

23 WW II, Cold War: the worst periods in the European history 1933: Hitler – new European order (Pax Germanica) – –4 th big great political unit spreading to significant parts of Europe After WW II: – –Role of Europe decreased in global politics (Germany, Italy, England, France) – –2 superpowers stand out: USA and SU Cold War: Europe’s division in two parts (Iron Curtain) – –Beginning of the European integration process – –Europe = step by step widening European integration (EU)