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 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).