Development: The Core-Periphery Model and Factors affecting Development Flashcards
What is the core-periphery model?
- This attempts to explain the process of development
- Divides countries into “core” (DCs) and “periphery” (LDCs) countries
- Suggests that development is initially brought about by natural advantages
- These stimulate development and attracts investments until a core country is formed
What happens as core countries continue to develop?
It starts to require more raw materials and human labour which can be found in the periphery countries.
Core countries can take control of these resources through war, colonisation and unfair trading rules
What happens to periphery countries in terms of development?
As they lack the advantages to challenge core countries, and are dependant on core countries for development, their own economic growth becomes slowed down
What is cumulative causation?
The process of how movement of people and resources from the periphery area increases the wealth of the core area
What is the backwash effect?
Periphery countries have…
- Fewer job investments
- Limited infrastructure
- Weak and poor economy
- Focus on primary industries
Hence raw materials and people (as labour) move to core countries, where…
- More and better jobs
- Higher standards of living
- Focus on secondary and tertiary industries
Hence finished products are sent back to periphery countries
Thus the backwash effect can be defined as: The flow of labour and raw materials from the periphery to the core, thereby leaving the periphery at a disadvantage
What is the spread effect?
Periphery countries have…
- Fewer job investments
- Limited infrastructure
- Weak and poor economy
- Focus on primary industries
Hence raw materials and people (as labour) move to core countries, where…
- More and better jobs
- Higher standards of living
- Focus on secondary and tertiary industries
Hence investments, skills and technology start to reach periphery countries.
Thus the spread effect can be defined as: The spread of wealth and knowledge from the core to the periphery, thereby assisting the economic development of the periphery
What are the categories of factors affecting development?
SHEEP
1. Social
2. Historical
3. Economic
4. Environmental/physical
5. Political
What are the social factors affecting development and why?
Education
- Low literacy rates–> less development
- LLR results in more difficulty learning skills (esp in sci & tech)
- Shortage of skilled labour
- Less development
Population growth rate
- Lack of education–> lack of family planning–> overpopulation
- Insufficient food, housing and healthcare facilities
- Lower development and SoL
- Eg. Kenya: 3.2% growth rate, Norway: 0.5% (1975-2003)
What are the historical factors affecting development and why?
Colonialism
- Former colonies–> less developed
- Natural resources taken by colonies for their own countries
- Not used to develop their own country
- Eg. Portugese colonised Angola in 15th century; set up plantations for cheap labour, sold crops for high prices in Europe
What are the environmental factors affecting development and why?
Natural disasters
- Both DCs and LDCs are subjected to NDs
- DCs have resources to recover
- Recover faster than LDCs–> Constant rebuilding–> low SoL
- Eg. Cyclone in Myanmar (2008): Damages amount–> USD$10 billion
- Resources diverted from developing country–> slow rate of development
Climate
- Most DCs are not in equatorial region, but in temperate regions
What are the economic factors affecting development and why?
Raw materials
- Countries with rich raw materials tend to develop faster
- Wealth from raw materials can be invested to develop country, QoL and SoL
- Not true for all countries: Nigeria; profits from crude oil all go to developing urban areas; rural areas remain poor
- Environment also affected, water contaminated; poor QoL and SoL
Culmulative causation
- Refers to positive development (core area) brought about by sustained efforts to spur economic development
- Achieved by transferring people and resources from periphery to core area
- Backwash and spread effects
What are the polictical factors affecting development and why?
Political conflict
- Countries with a lack of unstable environments such as frequent wars and social unrest will deter investors, leading to a lack of resources for development
- Eg. Cambodia: Civil war in late 1960s
- Economy suffered greatly; businesses disrupted as people forced out of cities and towns and into rural areas
- Left with little to start lives again
Leadership
- Good leadership can ensure corruption free environments and implementation of good policies
- No costs go to bribes, investments can be in education
- Ensure a skilful population that can** attract investors**
- Eg. China: All companies were state-owned; widespread poverty
- Since 1978, economic reforms have helped opened China’s economy to the world, attracting foreign trade and investment
