Describe the theory of centre-periphery model of underdevelopment

The center-periphery model of underdevelopment is a theory that seeks to explain the uneven distribution of wealth and power between developed, industrialized countries (the center) and less developed, often agrarian or resource-dependent countries (the periphery). This theory emerged within the field of dependency theory and was popularized by scholars such as Andre Gunder Frank and Immanuel Wallerstein.

According to the center-periphery model, the global capitalist system is characterized by a hierarchical structure in which the center countries exploit and dominate the periphery countries. The center countries are typically highly industrialized, technologically advanced, and economically powerful nations, while the periphery countries are characterized by limited industrialization, low technological advancement, and economic dependence on the center.

Describe the theory of centre-periphery model of underdevelopment

The theory suggests that this unequal relationship between the center and periphery is rooted in historical processes of colonization and imperialism. During the colonial era, European powers established colonies in various parts of the world, extracting resources and establishing trade networks that served the interests of the colonizers. This process created a global division of labor, where the periphery countries were relegated to providing raw materials and cheap labor for the center countries' industries.

As a result, the center countries became wealthy and developed, accumulating capital and technological expertise, while the periphery countries remained underdeveloped, stuck in a cycle of resource extraction and economic dependency. The center countries often maintain control over key industries, technologies, and financial institutions, enabling them to set the terms of trade and maintain a favorable position in the global economy.

The center-periphery model also emphasizes the role of multinational corporations (MNCs) in perpetuating underdevelopment. MNCs from the center countries often establish operations in the periphery, taking advantage of cheap labor and lax regulations. This can lead to the extraction of resources, exploitation of local labor, and the perpetuation of economic dependence on the center.

Furthermore, the center-periphery model highlights how the periphery countries' economies are structurally designed to serve the interests of the center. Export-oriented agricultural or resource extraction industries in the periphery often prevent the development of diverse and sustainable economies. This reliance on a limited range of commodities makes periphery countries vulnerable to fluctuations in global markets and commodity prices.

Critics of the center-periphery model argue that it oversimplifies the complex dynamics of global economic relations and overlooks the agency and internal factors within periphery countries that contribute to underdevelopment. Nevertheless, the model continues to offer insights into the historical and structural factors that have contributed to global economic inequality and underdevelopment.

The correct term is "dependency theory" or "theory of dependency," which is often associated with the center-periphery model of underdevelopment. The dependency theory is a sociopolitical and economic theory that originated in the 1960s and 1970s as a response to the underdevelopment and economic disparities between developed and developing countries.

According to the dependency theory, underdevelopment in the periphery countries is not solely the result of internal factors or lack of resources but is primarily caused by their economic and political dependence on the center countries. The theory argues that the center countries (also referred to as the "core") exploit and maintain control over the periphery countries (also known as the "dependent" or "underdeveloped") in a way that perpetuates their underdevelopment.

Dependency theorists argue that this dependency relationship is rooted in historical colonialism and imperialism, where the center countries established economic and political dominance over the periphery countries. This historical subjugation created a pattern of unequal trade relations, where the periphery countries were forced to export raw materials and agricultural products to the center countries at low prices, while importing manufactured goods at high prices. This trade pattern resulted in a perpetual flow of wealth from the periphery to the center, contributing to the underdevelopment of the periphery.

Furthermore, the dependency theory highlights how the center countries, through multinational corporations and international financial institutions, maintain control over key sectors of the periphery economies. This control often leads to the extraction of resources, exploitation of labor, and the perpetuation of an unequal division of labor between the center and periphery.

Dependency theorists argue that breaking free from this cycle of dependency requires periphery countries to challenge and restructure their economic and political relationships with the center countries. They emphasize the importance of promoting domestic industries, reducing dependence on primary exports, and implementing policies that prioritize the needs and development of the periphery countries.

It's important to note that while the dependency theory has contributed to our understanding of global economic inequalities, it has also faced criticisms. Some argue that it oversimplifies the complex dynamics of global relations and overlooks the agency and internal factors within periphery countries that contribute to their underdevelopment. Others suggest that the theory neglects the positive aspects of globalization and the potential for periphery countries to develop through participation in the global economy.

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