Development of the regions of the world economy

1. Development of the regions of the world economy dr. Jeney László Senior lecturer jeney@elte.hu Economic Geography I. International Business bachelor study programme (BA) Spring term 2015/2016. CUB Centre of Economic Geography and Futures Studies

2. Definition and characteristics of worldeconomy 2

3. Evolution and actors of worldeconomy • Modern world economy developed by a long historical evolution • The appearance of world market: • 15th–16thcentury(at the Age of Discovery): theappearanceofonlytheworld market • 18th–19th century (at the age of classical capitalism): the appearance worldeconomy • Atthesametimewiththeapprearanceof national economy • The essence is derived from the capitalist social formations • A system with more actors • National economies: oldiestactors • Transnational companies (tnc) • International organizations: newestactors

4. Similarconcepts • World economy > aggregate of nationaleconomies • Internationalizationof forces of production • More effectiveallocation of resources • Global problemscan be solvedonlyonthislevel (more and more questionsariseswhatshould be internationallydealt) • Processes of worldeconomydeterminestheonesofnationaleconomies • World economy > world market ( only the interactions among the national economies) • World economy < world system ( system of ethnical, cultural, military relations as well)

5. Universalitybutdiversity GDP of the countries of the World (on ppp), 2015. Source: Worldmapper • A world-wideeconomic unit of themankind • Even if hundred millions don’t integrated to the circulation • False statement: coexistence of a capitalist and a socialist world economies and world markets • Unified world market: connects with similar relations systems with different development • Main character of the contemporary world economy: diversity • Lowest 25% of the countries: GNP per capita < 500 $ • Highest 10% of the countries: GNP per capita > 20000 $ • Informational society (internet)  caravan routes • (Post-)modern  traditional pre-capitalist organizations • Conflicts instead of peaceful coexistence

6. Main characteristics of theglobalcore–peripheryrelationship 6

7. Wallerstein: theory of core–periphery • Wallerstein: newtheoreticalsystem: world economy forms an organic whole • Determinedsocio–economicstructure • The extremepoles: coresand peripheries • Core: action centre of fields, growth poles, hegemonic country at the top (West-Eu, USA, Japan) • Semi-Periphery: on the inner margin • Periphery: on the outer margin • Rostow, Friedman: theory of economic growth

8. Historicallychangingcores and peripheries • Cores and peripheriesexisted even before the appearance of the world economy (classical capitalism) • But: the achievement of the relationship only later • Historically changing, but reproductive shaped not predestination • More core appeared and disappeared along the history (e.g. Egypt, Mesopotamia) • The catching-up was successful by more peripheries (e.g. NorthAmerica, Japan, Southeast Asia)

9. Historicallychangingcores and peripheries • The falling behind means other results at different ages • Being CoreorPeripeherymatterssince the evolution of the formation of capitalist production, the world economy (sincethenitbecameimportant) • Core–periphery relationship evolved in more dimensions: economic and political  determines the international factors of trade • Asymetricmutual interdependence • Mutual: action centre and gravity zone: different efficiency advantages specialization of national economies world wide specialization • Asymmetric: the extents of dependence, advantages of specialization are not equal

10. Core–periphery • Power of Core derives from its higher development • Its interest: the establishment of the asymmetric dependence (e.g. military, assimilation, trading relations) • Core–periphery relationship: connection of the power centres evolved in large economic macroregions and their gravity zones • Characteristic economic macroregions: America, Europe–Africa, Far East • The relations of the action centres to each other is also changing  the spatial structure/pattern of world economy also changes

11. Economicgeographicdivision of the World Classic – 5 continents (Europe, Asia, America, Africa, Australia-Oceania) World economicposition: 2 (Brandt line: North and South) or 3 units(Core, Semi-Periphery, Periphery) Macroregions of theworldeconomy – 3 units: America, Europe-Africa, Far East Culturalregions 11

12. Economic core regions • Other definitions: • Global North • Triad (North America, Europe, East Asia) + Australia • Appearance as core region: • Europe: from the Age of Discoveries and the industrial revolution • North America, Australia: from the late 19th century • Japan: from the 1960s (famous ancient East Asian cultures) • Its state of development: in the forefront of the age • Its development is autonomic and organic • Self-modernization: derived from the inner structure and the inner motivation of the society • Recognition of natural and human rules  getting the new resources  ensure a more higher state of satisfaction of needs

13. Economicperipheries • Falls behind the state of development of Core • Does not move on an organic and autonomic pathway • Periphery: lagging structure  dependent position, acceptance of asymmetric relations • Delinking from the world is not alternative • Its development based on copy of more developed systems evolved under other circumstances copied  following samples • Question: are the copied samples able to be organic, to dynamize the whole structure?