Globalization and Development

Read this text about globalization and its effects. About ⅔ of the way through, it brings in Rostow's ideas and how it informs the Human Development Index (HDI). It then explains how, together, the HDI and Rostow's stages of growth combine to create a way to understand development.

Core-Periphery Spatial Relationship

Economic conditions vary across the globe. There are wealthy countries and there are poor countries, and the determination of which countries are wealthy and which countries are poor has generally been determined by the availability of economic opportunities and advantages.

There are three core areas of wealthy industrialized countries, all of which are found in the Northern Hemisphere: North America, Western Europe, and eastern Asia. The main market centers of these regions are New York City, London, and Tokyo. These three core areas and their prosperous neighbors make up the centers of economic activity that drive the global economy.

Other wealthy countries can be found dispersed in regions with large amounts of natural resources, such as the Middle East, or places of strategic location, such as Singapore. The world's poorer countries make up the peripheral countries. A few countries share qualities of both and may be called semiperipheries.

The periphery countries and the core countries each have unique characteristics. Peripheral locations are providers of raw materials and agricultural products. In the periphery, more people earn their living in occupations related to securing resources: farming, mining, or harvesting forest products. For the workers in these occupations, the profits tend to be marginal with fewer opportunities to advance. In the periphery, there is a condition known as brain drain, which describes a loss of educated or professional individuals. Young people leave the peripheral areas for the cities to earn an education or to find more advantageous employment. Few of these individuals return to the periphery to share their knowledge or success with their former community.

Brain drain also happens on an international level - that is, students from periphery countries might go to college in core countries, such as the United States or countries in Europe. Many international college graduates do not return to their poorer countries of origin but instead choose to stay in the core country because of the employment opportunities. This is especially true in the medical field. There is little political power in the periphery; centers of political power are almost always located in the core areas or at least dominated by the core cities. The core areas pull in people, skills, and wealth from the periphery. Lack of opportunities in the periphery pushes people to relocate to the core.

Power, wealth, and opportunity have traditionally been centered in the core areas of the world. These locations are urbanized and industrialized and hold immense economic and political power. Ideas, technology, and cultural activity thrive in these core areas. Political power is held in the hands of movers and shakers who inhabit the core. The core depends on the periphery for raw materials, food, and cheap labor, and the periphery depends on the core for manufactured goods, services, and governmental support.

 

Figure 1.32 The Core-Periphery Spatial Relationship

The core-periphery spatial relationship can be viewed on various levels. On a local level, one can select eastern Kentucky, with the city of Morehead as an example. Morehead has a population of about ten thousand people and is the only significant town in its county. Morehead, with a university, regional hospital and retail services, serves as a core hub for the surrounding periphery. The hinterland of Morehead has an economy based on agriculture, coal mining, and timber, which is typical of a peripheral region. The city of Morehead has the political, economic, and educational power that serves the people of its local area.

If we move up a level, we can understand that entire regions of the United States can be identified as peripheral areas: the agricultural Midwest, rural Appalachia, and the mountain ranges and basins of the western United States. The large metropolitan areas of the East and West Coasts and the Industrial Belt act as the core areas. Los Angeles and New York City anchor each coast, and cities such as Chicago, St. Louis, Denver, and Indianapolis represent the heartland. All the other large cities in the United States act as core areas for their surrounding peripheral hinterlands. Southern cities such as Atlanta, Memphis, Dallas, or Phoenix act as core centers of commerce for the South in a region known as the Sun Belt.

 

Figure 1.33 Three Core Economic Areas of the World: North American Free Trade Agreement (NAFTA); the European Union (EU); and the East Asian Community (EAC). EAC is not an "official" organization but is a recognized economic group.


On a global scale, we can understand why North America, Western Europe, and eastern Asia represent the three main economic core areas of the world. They all possess the most advanced technology and the greatest economic resources. Core regions control the corporate markets that energize and fuel global activity. Peripheral regions include portions of Africa, Asia, Latin America, and all the other places that primarily make their living from local resources and support the economic core. These peripheral regions may include key port cities.

A semiperiphery would be a transitional area between the core and the periphery, which could include countries such as Russia, India, or Brazil that are not exactly in the core and not really in the periphery but might have qualities of both. World migration patterns follow the core-periphery spatial relationship in that people and wealth usually shift from the peripheral rural regions to the urban core regions. The "have" countries of the world are in the core regions, while the "have-not" countries are most likely in the peripheral regions.