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topics: development until core-periphery
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explain core-periphery model
context
explains the process of development
development was initially brought about by natural advantages (natural resources/favourable climate)
stimulates development and attracts investments
describing
as core country develops → require more raw materials and human labour - found in periphery countries
core countries take control of the resources → through war, colonisation and unfair trading rules
periphery countries lack advantages to challenge core countries - dependent on core countries for development, their economic growth has slowed down
core countries sell finished product to periphery country at a cheaper price due to the lower costs of production in core countries
backwash effect:
the flow of labour and raw materials from periphery to core → leaves periphery at disadvantage
periphery has ↓ natural resources and ↓ manpower → less economic growth for periphery
spread effect:
spread of wealth and knowledge from core to periphery → ↑ economic development
labour and raw materials not brought over → core countries bring investments, skills and tech to periphery and set up factories there - cheaper labour
beneficial for periphery → ↓unemployment rate and ↑economic growth
income per capita
pros:
good indicator of state of economy and provision of services
easy to calculate from official government figures
standard unit of measurement
track growth of countries
cons:
average figure and does not reflect differences between individuals/regions - extreme outliers
does not consider informal economic activities (e.g. tuition)
does not consider social and environmental cost