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

Worldmapper.org

GNI in 2005

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.

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.

Finance and Insurance net exports 2002

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

1. New York2. London3. Tokyo4. Paris5. Hong Kong6. Chicago7. Los Angeles8. Singapore9. Sydney10. Seoul

A T Kearney Global Cities Index 2010http://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 Top 10 Most Global Cities

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.