Development: The Core-Periphery Model and Factors affecting Development

Question 1

What is the core-periphery model?

Answer 1

• 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
• 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
• As periphery countries lack the advantages to challenge core countries, and are dependant on core countries for development, their own economic growth becomes slowed down-

Question 2

What is cumulative causation?

Answer 2

The process of how movement of people and resources from the periphery area increases the wealth of the core area

Question 3

What is the backwash effect?

Answer 3

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

Question 4

What is the spread effect?

Answer 4

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

Question 5

What are the categories of factors affecting development?

Answer 5

SHEEP
1. Social
2. Historical
3. Economic
4. Environmental/physical
5. Political

Question 6

What are the social factors affecting development and why?

Answer 6

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)

Question 7

What are the historical factors affecting development and why?

Answer 7

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

Question 8

What are the environmental factors affecting development and why?

Answer 8

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

Question 9

What are the economic factors affecting development and why?

Answer 9

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 due to oil pollution; poor QoL and SoL

Culmulative causation
- Refers to positive development (core area) brought about by sustained efforts to spur economic development
- (New industry-> more jobs-> more income-> greater purchasing power-> more demand for goods and services)
- (New industries-> more jobs-> influx of migrants-> more taxes collected-> more development)
- Achieved by transferring people and resources from periphery to core area
- Backwash and spread effects

Question 9

What are the political factors affecting development and why?

Answer 9

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