Core countries
Encyclopedia
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. They have strong state institutions, a powerful military and powerful global political alliances.
Core countries do not always stay core permanently. Throughout history, core nations have been changing and new ones have been added to the core list. The most influential countries in the past have been what would be considered core. These were the Asia
n and Middle Eastern empires in the ages up to the 16th century, when the Europe
an powers took the lead, although the major Asian powers such as China
were still very influential in the region. Europe remained ahead of the pack until the 20th century, when the two World Wars turned disastrous for the European economies. It is then that the victorious United States
and Soviet Union
, up to late 1980s, became the two hegemons, creating a bipolar world order
.
Today, core nations are generally the most developed countries (see picture on the right), which include the United States
, Canada
, Australia
, Japan
, and the more developed western European countries. Yet, new additions may be expected soon, as some ex-periphery and some semi-periphery states are quickly gaining momentum in their economic growth.
The United States, Europe, Australia, and Japan are examples of present core countries that have the most power in the world economic system. Core countries have both strong state machinery and a developed national culture.
and Chinese empires. At its peak, the Roman Empire controlled large parts of Europe and the Mediterranean region.
In Asia, the Chinese Empire was considered the middle kingdom and controlled the region. The two empires communicated and traded through the Silk Route, which takes its name from the extensive trade of Chinese silk.
is a particularly important period which started in 1206 and ended, according to contradicting sources, between late 14th and early 15th centuries. The trade during this period took on a truly multi—continental dimension, efficient and safe trade routes were established, and many of the modern rules of trade were emerging. The Mongol Empire
was the largest contiguous empire in the history of the world. It stretched from as far east as China all the way to Europe, taking up large parts of Central Asia, Middle East
, and India
.
Many trade routes went through the Mongol Empire territory, even though they were not the easiest ones to travel, due to the rough Asian terrain. Yet, they attracted many merchants, because these routes were relatively cheap and safe to travel.
The Mongols
controlled their territories through military force and taxation. In many regions of the Mongol territory, the Mongol rule is remembered as brutal and destructive. Yet, some argue that many economic and cultural improvements were made during the Mongol Empire rule.
, which emerged in 1299, quickly became a power to be reckoned with. By 1450, the Ottoman Empire took up the connecting territory between Black
and Mediterranean seas. Yet, although the Ottoman Empire lasted three times longer than the Mongol Empire, it never came anywhere near the size of it.
took over Western European society and pushed Western Europe on a road to capitalist development. Population and commerce grew rapidly within the feudal system during the years of 1150—1300. Through the years 1300—1450, an economic downfall came about. The feudalism growth had come to an end. According to Wallerstein
, "the feudal crisis was most likely brought on by the involvement of the three following factors below:
increased as the ruling class expanded.
economy began to shrink.
increase in epidemics within the population."
The feudal crisis lead to the development of the world economic system. The world economic system came about during the late 15th and early 16th centuries. The most dominant of Northwestern Europe were England
, France
, and Holland (see map of Western Europe on the right). These countries took on the definition of a core country. They developed a strong central government, bureaucracies, and grew their military power. These countries were then able to control the international commerce and create a profit for themselves. All of western Europe attempted bureaucratization, homogenization of the local population, developing a stronger military, and involving the country in a vast number of different economic activities. After these attempts to gain the "core" status, north western Europe states locked in there positions as core states by 1640. England dominated the pack as Spain
and Italy
fell to semi-peripheral status. One factor that helped the core countries dominate over the other countries is that long—distance trade with the Americas and the east. This trade produced profits of 200%—300%. In order to enter this trade market countries needed a great amount of capital and state help. The smaller countries could not make this happen and this widened the gap between the "core" and "semi—periphery" countries. These core positions held strong up and through the 18th century, even as the core regions started to produce a mixture of agricultural and industrial goods. At the beginning of 1700, the industrial productions started to take off. Industrial production soon took over the agricultural production up to 1900.
Keeping in mind the interactions of nations in this period, John W. Cell notes in his essay entitled "Europe and the World in an Expanding World Economy, 1700—1850", that war and trade were somewhat dependent on each other. Nations had to defend their ships while also establishing territories elsewhere to ensure successful trade for themselves. By the middle of the 17th century, the "foundations of the modern world system had been laid."
almost posed a threat to this dominating power by being very active at sea. However, it essentially failed to take Europe's place.
In the 18th century, Asia was making and distributing goods that were valued by other areas, namely cotton
, silk
and tea
. Europe on the other hand, was not producing products of interest to the other parts of the world. Hence, although Europe was wealthy, this dynamic shows that there may be a reversal of power because it was consistently expanding money, yet hardly bringing in currency.America's crops were not initially appealing to Europeans. Tobacco's demand had to be advertised and eventually Europe became interested in this particular plant. In time, there was rather regular trans-Atlantic trade between the Americas and Europe for such crops as tobacco, cotton, and also goods available in South America
.
in August of 1619 as a form of indentured servitude
, it continued in the next centuries. Slavery also occurred in Africa
previous to Europeans capitalizing on selling slaves. Africans were sometimes hired to collect others off the coast, and bring them back to European ships. Because of this trade, the dependent nations remained dependent as their populations were suffering from the slave trade.
This trade of humans was incredibly profitable for the Europeans, perpetuating their success and "rule" of the seas. Immediately following the early 19th century, the southern U.S. was 37.5% slaves.
attempted to obtain European hegemony under the rule of Napoleon Bonaparte.
In 1871, Germany
became united and established themselves as the leading industrial nation on the European mainland. Their desire to dominate the mainland helped them to become a core nation. After the First World War, Europe was decimated, and the position for new core nations was opening up. This culminated with the defeat of Nazi Germany
in the Second World War, when Britain was forced to sacrifice its hegemony, allowing the United States and the Soviet Union
to become world superpowers and major cores. The USSR lost its core status following its collapse in 1991.
And this is the core listing according to Babones and Alvarez-Rivadulla (2007), who note that this list is composed of countries that "have been consistently classified into a single one of the three zones [core, semi-periphery or periphery] of the world economy over the entire 28-year study period".
argues that a nation's future is decided by their stance in the global economy. A global capitalistic market demands the needs for wealthy (core) states and poor (periphery) states. Core states benefit from the hierarchical structure of international trade and labor. World systems theory follows the logic that international wars or multinational financial disputes can be explained as attempts to change a location within the global market for a specific state or groups of states; these changes can be to gain more control over the global market (to become a core country) while causing another nation to lose control over the world market. As the two groups grew apart in power, world systems theorists to established another group, the semi-periphery, to act as the middle group.
Semi-periphery countries
usually surround the core countries both in a physical and fundamental sense. The semi-periphery countries act as the middle men between the core and the periphery countries - by giving the wealthy countries what they receive from the poor countries. The periphery countries
are the poorer countries usually specializing in farming and have access natural resources - which the core countries use to profit from.
In order for a country to be considered a core country nominee, the country must possess an independent, stable government and potential for growth in the global market and advances in technology. Although these three factors will not completely decide where a company chooses to invest – they do play extremely large roles in such decisions. A main key to becoming or remaining a core is determined by the country’s government policies to encourage funding from outside.
The periphery countries’ purpose is to provide agricultural and natural resources along with the lower division of labor for larger corporations of semi-periphery and core countries. As a result of the lower priced division of labor and natural resources available, the core nations’ companies buy these products for a relatively low cost and then sell them for much higher. The periphery countries only receive low amounts of money for what they sell and must pay higher prices for anything they buy from outside their own region. Because of this continuous order, periphery countries can never earn enough to cover the costs of their imports while setting aside money to invest in better technologies. Core countries support this pattern by giving loans to the poor regions for specific investments in a raw material or type of agriculture, rather than help such regions establish themselves and balance out the world market.
An example of a change that capitalism does not favor is the abolition of slavery. During the early industrialization and growth of America, exports produced by slaves played a huge role in making businesses the most profit. Such movements to abolish slavery and spread equality caused an internal war within America.
World Systems Theory
The world-systems theory is a multidisciplinary, macro-scale approach to world history and social change....
, the core countries are the industrialized capitalist
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
countries on which periphery countries
Periphery countries
In World Systems Theory, the periphery countries are those that are less developed than the semi-periphery and core countries. These countries usually receive a disproportionately small share of global wealth. They have weak state institutions and are dependent on – according to some, exploited...
and semi-periphery countries
Semi-periphery countries
In world-systems theory, the semi-periphery countries are the industrializing, mostly capitalist countries which are positioned between the periphery and core 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. They have strong state institutions, a powerful military and powerful global political alliances.
Core countries do not always stay core permanently. Throughout history, core nations have been changing and new ones have been added to the core list. The most influential countries in the past have been what would be considered core. These were the Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
n and Middle Eastern empires in the ages up to the 16th century, when the Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an powers took the lead, although the major Asian powers such as China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
were still very influential in the region. Europe remained ahead of the pack until the 20th century, when the two World Wars turned disastrous for the European economies. It is then that the victorious United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
, up to late 1980s, became the two hegemons, creating a bipolar world order
World order
- International relations :* The international system, which includes:** International relations , or International studies , the study of foreign affairs and global issues among states within the international system...
.
Today, core nations are generally the most developed countries (see picture on the right), which include the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, and the more developed western European countries. Yet, new additions may be expected soon, as some ex-periphery and some semi-periphery states are quickly gaining momentum in their economic growth.
Definition
Core countries control and profit the most from the world system, and thus they are the "core" of the world system. These countries possess the ability to exercise control over other countries or groups of countries with several kinds of power such as, military, economic, and political power.The United States, Europe, Australia, and Japan are examples of present core countries that have the most power in the world economic system. Core countries have both strong state machinery and a developed national culture.
Pre—13th century
Before the 13th century, the two empires considered to be "core" are the RomanRoman Empire
The Roman Empire was the post-Republican period of the ancient Roman civilization, characterised by an autocratic form of government and large territorial holdings in Europe and around the Mediterranean....
and Chinese empires. At its peak, the Roman Empire controlled large parts of Europe and the Mediterranean region.
In Asia, the Chinese Empire was considered the middle kingdom and controlled the region. The two empires communicated and traded through the Silk Route, which takes its name from the extensive trade of Chinese silk.
13th—15th century
Mongol Empire
Pax MongolicaPax Mongolica
The Pax Mongolica is a Latin phrase meaning "Mongol Peace" coined by Western scholars to describe the stabilizing effects of the conquests of the Mongol Empire on the social, cultural, and economic life of the inhabitants of the vast Eurasian territory that the Mongols conquered in the 13th and...
is a particularly important period which started in 1206 and ended, according to contradicting sources, between late 14th and early 15th centuries. The trade during this period took on a truly multi—continental dimension, efficient and safe trade routes were established, and many of the modern rules of trade were emerging. The Mongol Empire
Mongol Empire
The Mongol Empire , initially named as Greater Mongol State was a great empire during the 13th and 14th centuries...
was the largest contiguous empire in the history of the world. It stretched from as far east as China all the way to Europe, taking up large parts of Central Asia, Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
, and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
.
Many trade routes went through the Mongol Empire territory, even though they were not the easiest ones to travel, due to the rough Asian terrain. Yet, they attracted many merchants, because these routes were relatively cheap and safe to travel.
The Mongols
Mongols
Mongols ) are a Central-East Asian ethnic group that lives mainly in the countries of Mongolia, China, and Russia. In China, ethnic Mongols can be found mainly in the central north region of China such as Inner Mongolia...
controlled their territories through military force and taxation. In many regions of the Mongol territory, the Mongol rule is remembered as brutal and destructive. Yet, some argue that many economic and cultural improvements were made during the Mongol Empire rule.
Ottoman Empire
The Ottoman EmpireOttoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...
, which emerged in 1299, quickly became a power to be reckoned with. By 1450, the Ottoman Empire took up the connecting territory between Black
Black Sea
The Black Sea is bounded by Europe, Anatolia and the Caucasus and is ultimately connected to the Atlantic Ocean via the Mediterranean and the Aegean seas and various straits. The Bosphorus strait connects it to the Sea of Marmara, and the strait of the Dardanelles connects that sea to the Aegean...
and Mediterranean seas. Yet, although the Ottoman Empire lasted three times longer than the Mongol Empire, it never came anywhere near the size of it.
15th—18th century
Prior to the 16th century, feudalismFeudalism
Feudalism was a set of legal and military customs in medieval Europe that flourished between the 9th and 15th centuries, which, broadly defined, was a system for ordering society around relationships derived from the holding of land in exchange for service or labour.Although derived from the...
took over Western European society and pushed Western Europe on a road to capitalist development. Population and commerce grew rapidly within the feudal system during the years of 1150—1300. Through the years 1300—1450, an economic downfall came about. The feudalism growth had come to an end. According to Wallerstein
Wallerstein
Wallerstein is a surname, which can refer to:* Immanuel Wallerstein , U.S. sociologist* Jim Wallerstein , guitarist and vocalist* Michael Wallerstein , political scientist* Robert S...
, "the feudal crisis was most likely brought on by the involvement of the three following factors below:
- . Agricultural production fell or remained stagnant. This meant that the burden of peasant producers
increased as the ruling class expanded.
- . The economic cycle of the feudal economy had reached its optimum level; afterward, the
economy began to shrink.
- . A shift of climatological conditions decreased agricultural productivity and contributed to an
increase in epidemics within the population."
The feudal crisis lead to the development of the world economic system. The world economic system came about during the late 15th and early 16th centuries. The most dominant of Northwestern Europe were England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, and Holland (see map of Western Europe on the right). These countries took on the definition of a core country. They developed a strong central government, bureaucracies, and grew their military power. These countries were then able to control the international commerce and create a profit for themselves. All of western Europe attempted bureaucratization, homogenization of the local population, developing a stronger military, and involving the country in a vast number of different economic activities. After these attempts to gain the "core" status, north western Europe states locked in there positions as core states by 1640. England dominated the pack as Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
and Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
fell to semi-peripheral status. One factor that helped the core countries dominate over the other countries is that long—distance trade with the Americas and the east. This trade produced profits of 200%—300%. In order to enter this trade market countries needed a great amount of capital and state help. The smaller countries could not make this happen and this widened the gap between the "core" and "semi—periphery" countries. These core positions held strong up and through the 18th century, even as the core regions started to produce a mixture of agricultural and industrial goods. At the beginning of 1700, the industrial productions started to take off. Industrial production soon took over the agricultural production up to 1900.
18th—early 19th century
As nations continued to grow technologically, especially through printing journals and newspapers, communication was more widespread. Thus, the global society was united through this force. In order to assure a good life for their citizens, countries needed to rely on trade and on technological advancements, which ultimately determined how well in the world a country stood.Keeping in mind the interactions of nations in this period, John W. Cell notes in his essay entitled "Europe and the World in an Expanding World Economy, 1700—1850", that war and trade were somewhat dependent on each other. Nations had to defend their ships while also establishing territories elsewhere to ensure successful trade for themselves. By the middle of the 17th century, the "foundations of the modern world system had been laid."
Rise and eventual European hegemony
At the beginning of the 18th century, Europe had not yet dominated in the world economy on account of the fact that its military did not match that of Asia's or of the Middle East. However, through organizing its economics and improving technology in industry, European countries took the lead as the most powerful nations in the late 18th century and remained in this position until late in the 20th century. During this time, PortugalPortugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
almost posed a threat to this dominating power by being very active at sea. However, it essentially failed to take Europe's place.
In the 18th century, Asia was making and distributing goods that were valued by other areas, namely cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, silk
Silk
Silk is a natural protein fiber, some forms of which can be woven into textiles. The best-known type of silk is obtained from the cocoons of the larvae of the mulberry silkworm Bombyx mori reared in captivity...
and tea
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
. Europe on the other hand, was not producing products of interest to the other parts of the world. Hence, although Europe was wealthy, this dynamic shows that there may be a reversal of power because it was consistently expanding money, yet hardly bringing in currency.America's crops were not initially appealing to Europeans. Tobacco's demand had to be advertised and eventually Europe became interested in this particular plant. In time, there was rather regular trans-Atlantic trade between the Americas and Europe for such crops as tobacco, cotton, and also goods available in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
.
Slave trade
The 18th century was profoundly marked by the slave trade. Although it had started on continental North AmericaNorth America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
in August of 1619 as a form of indentured servitude
Indentured servant
Indentured servitude refers to the historical practice of contracting to work for a fixed period of time, typically three to seven years, in exchange for transportation, food, clothing, lodging and other necessities during the term of indenture. Usually the father made the arrangements and signed...
, it continued in the next centuries. Slavery also occurred in Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
previous to Europeans capitalizing on selling slaves. Africans were sometimes hired to collect others off the coast, and bring them back to European ships. Because of this trade, the dependent nations remained dependent as their populations were suffering from the slave trade.
This trade of humans was incredibly profitable for the Europeans, perpetuating their success and "rule" of the seas. Immediately following the early 19th century, the southern U.S. was 37.5% slaves.
Early 19th century—present
At the beginning of the 19th century, Europe still dominated as the core region of the world. FranceFrance
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
attempted to obtain European hegemony under the rule of Napoleon Bonaparte.
In 1871, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
became united and established themselves as the leading industrial nation on the European mainland. Their desire to dominate the mainland helped them to become a core nation. After the First World War, Europe was decimated, and the position for new core nations was opening up. This culminated with the defeat of Nazi Germany
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
in the Second World War, when Britain was forced to sacrifice its hegemony, allowing the United States and the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
to become world superpowers and major cores. The USSR lost its core status following its collapse in 1991.
List of current core countries
The following are core according to Dunn, Kawana, Brewer (2000).And this is the core listing according to Babones and Alvarez-Rivadulla (2007), who note that this list is composed of countries that "have been consistently classified into a single one of the three zones [core, semi-periphery or periphery] of the world economy over the entire 28-year study period".
Sociological theory
The World Systems TheoryWorld Systems Theory
The world-systems theory is a multidisciplinary, macro-scale approach to world history and social change....
argues that a nation's future is decided by their stance in the global economy. A global capitalistic market demands the needs for wealthy (core) states and poor (periphery) states. Core states benefit from the hierarchical structure of international trade and labor. World systems theory follows the logic that international wars or multinational financial disputes can be explained as attempts to change a location within the global market for a specific state or groups of states; these changes can be to gain more control over the global market (to become a core country) while causing another nation to lose control over the world market. As the two groups grew apart in power, world systems theorists to established another group, the semi-periphery, to act as the middle group.
Semi-periphery countries
Semi-periphery countries
In world-systems theory, the semi-periphery countries are the industrializing, mostly capitalist countries which are positioned between the periphery and core countries...
usually surround the core countries both in a physical and fundamental sense. The semi-periphery countries act as the middle men between the core and the periphery countries - by giving the wealthy countries what they receive from the poor countries. The periphery countries
Periphery countries
In World Systems Theory, the periphery countries are those that are less developed than the semi-periphery and core countries. These countries usually receive a disproportionately small share of global wealth. They have weak state institutions and are dependent on – according to some, exploited...
are the poorer countries usually specializing in farming and have access natural resources - which the core countries use to profit from.
Key qualifiers
In order for a country to remain a core or to become a core, possible investors must be kept in mind when nation’s policies are planned. Core countries change with time due to many different factors including changes in geographic favoritism and regional affluence. Alterations in financing plans by companies will also play a part as they change to react to the continuously evolving world market.In order for a country to be considered a core country nominee, the country must possess an independent, stable government and potential for growth in the global market and advances in technology. Although these three factors will not completely decide where a company chooses to invest – they do play extremely large roles in such decisions. A main key to becoming or remaining a core is determined by the country’s government policies to encourage funding from outside.
Main functions
The main function of the core countries is to command and financially benefit from the world system better than the rest of the world. Core countries could also be viewed as the capitalist class while the periphery countries could be viewed as a disordered working class. In a capitalism-driven market, core countries exchange goods with the poor nations at an unequal rate greatly in favor of the core countries.The periphery countries’ purpose is to provide agricultural and natural resources along with the lower division of labor for larger corporations of semi-periphery and core countries. As a result of the lower priced division of labor and natural resources available, the core nations’ companies buy these products for a relatively low cost and then sell them for much higher. The periphery countries only receive low amounts of money for what they sell and must pay higher prices for anything they buy from outside their own region. Because of this continuous order, periphery countries can never earn enough to cover the costs of their imports while setting aside money to invest in better technologies. Core countries support this pattern by giving loans to the poor regions for specific investments in a raw material or type of agriculture, rather than help such regions establish themselves and balance out the world market.
Effects
A disadvantage to core nations is to remain a member of the core grouping, the government must retain or create new policies that encourage investments to keep in their country and not relocate. This can make it difficult for governments to change national standards that may sacrifice high profits.An example of a change that capitalism does not favor is the abolition of slavery. During the early industrialization and growth of America, exports produced by slaves played a huge role in making businesses the most profit. Such movements to abolish slavery and spread equality caused an internal war within America.
See also
- Core-peripheryCore-peripheryCore-periphery theory is based on the notion that as one region or state expands in economic prosperity, it must engulf regions nearby to ensure ongoing economic and political success. The area of high growth or former high growth becomes known as the core, and the neighboring area is the periphery...
- Dependency theoryDependency theoryDependency theory or dependencia theory is a body of social science theories predicated on the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former...
- Developing countryDeveloping countryA developing country, also known as a less-developed country, is a nation with a low level of material well-being. Since no single definition of the term developing country is recognized internationally, the levels of development may vary widely within so-called developing countries...
- First WorldFirst WorldThe concept of the First World first originated during the Cold War, where it was used to describe countries that were aligned with the United States. These countries were democratic and capitalistic. After the fall of the Soviet Union and the end of the Cold War, the term "First World" took on a...