The core periphery model of development is a theoretical framework that explains the relationships between different regions in the world and how they contribute to the global economy. It was developed by economist Raúl Prebisch in the 1950s as a way to understand the economic disparities between the industrialized countries of the "core" and the developing countries of the "periphery."
According to the core periphery model, the core countries are the industrialized, highly developed nations that dominate the global economy. These countries are typically located in North America, Western Europe, and East Asia. They have advanced technologies, well-developed infrastructure, and highly skilled labor forces, which enable them to produce high-value goods and services.
The periphery countries, on the other hand, are the developing nations located in Latin America, Africa, and parts of Asia. These countries are typically characterized by low levels of development and industrialization, limited access to technology and capital, and relatively low levels of education and skills among their populations. As a result, they are unable to compete with the core countries in the production of high-value goods and services, and instead tend to specialize in the production of raw materials and low-value-added products.
The core periphery model highlights the economic disparities between the core and periphery and explains how these disparities are maintained over time. According to the model, the core countries have a strong influence on the periphery through their control of international trade and financial markets. They are able to set the terms of trade in their favor, which means that the periphery countries receive lower prices for their exports and have to pay higher prices for the imports they need. This makes it difficult for the periphery countries to improve their economic development and catch up with the core countries.
In addition to economic factors, the core periphery model also takes into account social and cultural factors that contribute to the ongoing disparities between the core and periphery. For example, the core countries have more advanced educational systems, which produce a highly skilled labor force that is able to adapt to new technologies and industries. The periphery countries, on the other hand, often have less developed educational systems, which means that their populations may not have the skills and knowledge needed to compete in the global economy.
There have been various criticisms of the core periphery model, including the argument that it oversimplifies the complex relationships between different regions of the world and ignores the agency of periphery countries in shaping their own development. However, the model remains an important tool for understanding the global economic landscape and the challenges facing developing countries as they seek to catch up with the industrialized core.
In conclusion, the core periphery model of development is a useful framework for understanding the economic disparities between the developed and developing countries of the world and the factors that contribute to these disparities. It highlights the economic, social, and cultural factors that shape the relationships between the core and periphery and helps to explain why some countries are able to achieve high levels of development while others struggle to catch up.
