How are core and periphery distinguished?

In the Worlds Systems Theory, developed by sociologist Emmanuel Wallerstein, nations are classified into three groups: core, semi-periphery and periphery. The relations of the 2-way direction between the three groups suggest that dominant nations benefit and are supported with raw materials and work of labors while developing countries are being exploited and left out from globalized economy. In this article, characteristics that distinguish countries among three groups will be explicitly explained.

Core nations export high-profit consumption goods to semi-periphery and periphery. These countries are backed with strong capital and the foreign direct investment (FDI) is relatively high, which development of communications, technology and education are decently invested. The literacy and academic rates of citizens are high. They are also societies of great cultural and racial diversity. The quality of life is better in various aspects and the gap between rich and poor is smaller as compared to peripheral nations. Physical factors of core nations can be coastlines, stable weather, available resources (e.i coal in Alaska) and big portion of flat lands, where construction is less challenging. International airports and harbors are also economically essential.Secondary and tertiary industry dominate the economic structure of these core countries, such as Singapore, ranked the 1st integrated country, the US, ranked the 3rd, Denmark, ranked the 5th, according to the globalization index of A.T Kearney, 2009. According to the United Nations, two thirds of the population will be living in urban areas by the year of 2050. Global/core cities are gates for the capital flow and immigration net for the country. According to global cities ranking of A.T Kearney , London is ranked the 1st in Index under measurements of business activity, human capital, information exchange, cultural experience and political engagement; but it is ranked the 4th with San Francisco the 1st in Outlook, which takes measurements of personal well-being, economics, innovation and governance. The dominant global economic cities are Tokyo, New York and London, who are independently, politically and financially outstanding from other cities in a nation.

Peripheral countries provide cheap labor and raw materials for core and semi-periphery, while being financially dependent on them, such as Mongolia with its export goods of copper, cashmere and wool. Peripheral nations, such as ones in central Asia and Sub-Saharan Africa lack coastlines and are mountainous and with extreme weathers, making lives of livestock, construction and transportation difficult. The devastating diseases and political/historic conflicts also result in high crude death rate and high rate of illiteracy. However, not only are peripheral countries dependent on core nations but also the other way around. Core nations do not want peripheral nations to develop to a level where they can be competitive for domination but to remain peripheral and as a lower-waged resource for them.

We can classify cities of Taiwan using the World Systems Theory. Taipei and Taichung are core cities, which are the richest and most racial diversified; Kaohsiung is a semi-periphery, where industrial factories locate but also has a economic/technological downtown area; Taidung and Hualien are peripheries, where agriculture and raw materials come from.