1. Development of the regions of the world economy
dr. László Jeney
associate professor
Economic and Human Geography
bachelor study programmes (BA)
Spring term 2018/2019.
CUB Institue of Economic Geography, Geoeconomy and Sustainable Development

2. Definition and characteristics of world economy2

3. Evolution and actors of world economy
Modern world economy developed by a long historical evolution
15th–16th century (at the Age of Discovery): the appearance of only the world market
18th–19th century (at the age of classical capitalism): the appearance world economy
At the same time with the apprearance of national economy
The essence is derived from the capitalist social formations
A system with more actors
National economies: oldiest actors
Transnational companies (tnc)
International organizations: newest actors 3

4. Similar concepts World economy > aggregate of national economies
Internationalization of forces of production
More effective allocation of resources
Global problems can be solved only on this level (more and more questions arises what should be internationally dealt)
Processes of world economy determines the ones of national economies
World economy > world market ( only the interactions among the national economies)
World economy < world system ( system of ethnical, cultural, military relations as well) 4

5. Universality but diversity
GDP of the countries of the World (on ppp), 2015.
Source: Worldmapper
A world-wide economic unit of the mankind
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 > $
Informational society (internet)  caravan routes
(Post-)modern  traditional pre-capitalist organizations
Conflicts instead of peaceful coexistence 5

6. Main characteristics of the global core–periphery relationship6

7. Wallerstein: theory of core–periphery
Wallerstein: new theoretical system: world economy forms an organic whole
Determined socio–economic structure
The extreme poles: cores and 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 7

8. Historically changing cores and peripheries
Cores and peripheries existed 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. North America, Japan, Southeast Asia) 8

9. Historically changing cores and peripheries
The falling behind means other results at different ages
Being Core or Peripehery matters since the evolution of the formation of capitalist production, the world economy (since then it became important)
Core–periphery relationship evolved in more dimensions: economic and political  determines the international factors of trade
Asymetric mutual 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 9

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 10

11. Economic geographic division of the World
Classic – 5 continents (Europe, Asia, America, Africa, Australia-Oceania)
World economic position: 2 (Brandt line: North and South) or 3 units (Core, Semi-Periphery, Periphery)
Macroregions of the world economy – 3 units: America, Europe-Africa, Far East
Cultural regions
World economic position
Macroregions of the world economy
America
Europe-Africa
Debated
Far East
Centre
North America
Europe
Australia 
East Asia
Semi-Periphery
Latin America
Islamic World
Southeast Asia
Periphery
Tropical Africa
South Asia
North and Inner Asia 11