Global core and periphery essay

Background[ edit ] Periphery countries are those that exist on the outer edges of global trade.

Global core and periphery essay

This idea is known as the Prebisch—Singer thesis. Prebisch, an Argentine economist at the United Nations Commission for Latin America UNCLAwent on to conclude that the underdeveloped nations must employ some degree of protectionism in trade if they were to enter a self-sustaining development path.

He argued that import-substitution industrialisation ISInot a trade-and-export orientationwas the best strategy for underdeveloped countries.

Baran in with the publication of his The Political Economy of Growth. Some authors identify two main streams in dependency theory: Using the Latin American dependency model, the Guyanese Marxist historian Walter Rodneyin his book How Europe Underdeveloped Africa, described in an Africa that had been consciously exploited by European imperialists, leading directly to the modern underdevelopment of most of the continent.

It was used to explain the causes of overurbanizationa theory that urbanization rates outpaced industrial growth in several developing countries. Technology — the Promethean force unleashed by the Industrial Revolution — is at the center of stage.

The Center countries controlled the technology and the systems for generating technology. Foreign capital could not solve the problem, since it only led to limited transmission of technology, but not the process of innovation itself.

Baran and others frequently spoke of the international division of labour — skilled workers in the center; unskilled in the periphery — when discussing key features of dependency.

Baran placed surplus extraction and capital accumulation at the center of his analysis. Development depends on a population's producing more than it needs for bare subsistence a surplus.

Further, some of that surplus must be used for capital accumulation — the purchase of new means of production — if development is to occur; spending the surplus on things like luxury consumption does not produce development.

Baran noted two predominant kinds of economic activity in poor countries. In the older of the two, plantation agriculture, which originated in colonial timesmost of the surplus goes to the landowners, who use it to emulate the consumption patterns of wealthy people in the developed world; much of it thus goes to purchase foreign-produced luxury items —automobiles, clothes, etc.

The more recent kind of economic activity in the periphery is industry—but of a particular kind. It is usually carried out by foreigners, although often in conjunction with local interests.

It is often under special tariff protection or other government concessions. The surplus from this production mostly goes to two places: Again, little is used for development. Baran thought that political revolution was necessary to break this pattern.

In the s, members of the Latin American Structuralist school argued that there is more latitude in the system than the Marxists believed. They argued that it allows for partial development or "dependent development"—development, but still under the control of outside decision makers.

They cited the partly successful attempts at industrialisation in Latin America around that time Argentina, Brazil, Mexico as evidence for this hypothesis. They were led to the position that dependency is not a relation between commodity exporters and industrialised countries, but between countries with different degrees of industrialisation.

In their approach, there is a distinction made between the economic and political spheres: Fajnzybler has made a distinction between systemic or authentic competitiveness, which is the ability to compete based on higher productivity, and spurious competitiveness, which is based on low wages.

He believes that the hegemonic position of the United States is very strong because of the importance of its financial markets and because it controls the international reserve currency — the US dollar.

He believes that the end of the Bretton Woods international financial agreements in the early s considerably strengthened the United States' position because it removed some constraints on their financial actions.

Theotonio dos Santos described a "new dependency", which focused on both the internal and external relations of less-developed countries of the periphery, derived from a Marxian analysis.

Global core and periphery essay

Former Brazilian President Fernando Henrique Cardoso in office — wrote extensively on dependency theory while in political exile during the s, arguing that it was an approach to studying the economic disparities between the centre and periphery.According to the world-systems theory, the global division of labor separates nation states into three tiers: the core, the periphery, and the semiperiphery.

The world capitalist economy is. Global Core and Periphery Essay Global core and periphery LO: to discuss the spatial pattern of global interactions through the mapping of core areas at the focus of interaction (network hubs/nodes), the peripheries and areas relatively unaffected by these interactions.

Global economy – basic features * Single world market – producers to.

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The Levy Economics Institute of Bard College is a non-profit, nonpartisan, public policy think tank. Immanuel Maurice Wallerstein (/ ˈ w ɔː l ər s t iː n /; born September 28, ) 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-systems approach.

He publishes bimonthly syndicated commentaries on world affairs. Published: Mon, 5 Dec The economic globalization leads to the linguistic globalization.

The variables which make the language globalized are the number of languages, migration of people, foreign language learning, tourism, internet languages, and international scientific publications. In world systems theory, the core countries are the industrialized capitalist countries on which periphery countries and semi-periphery countries depend.

Core countries control and benefit from the global market. They are usually recognized as wealthy nations with a wide variety of resources and are in a favorable location compared to other states.

Global Capitalism, The History and Nature of Capitalism