Periphery countries

In world systems theory, the periphery countries (sometimes referred to as just the periphery) are those that are less developed than the semi-periphery and core countries. These countries usually receive a disproportionately small share of global wealth. They have weak state institutions and are dependent on – according to some, exploited by – more developed countries. These countries are usually behind because of obstacles such as lack of technology, unstable government, and poor education and health systems. In some instances, the exploitation of periphery countries' agriculture, cheap labor, and natural resources aid core countries in remaining dominant. This is best described by dependency theory, which is one theory on how globalization can affect the world and the countries in it. It is, however, possible for periphery countries to rise out of their status and move into semi-periphery or core status. This can be done by doing things such as industrializing, stabilizing the government and political climate, etc.

Periphery countries are those that exist on the outer edges of global trade. There could be many reasons for a country to be considered peripheral, such as a dysfunctional or inefficient government. For example, some nations customs and ports are so inefficient that even though they are geographically closer it is cheaper to ship goods from longer distances. Other reasons such as wars, non-central location, insufficient infrastructure (rail lines, roads and communications) will keep a country in the periphery of global trade. Generally the populations tend to be poor and destitute so the core countries will exploit them for cheap labor and will even purposely interfere with their politics to keep things this way. Usually a peripheral country will specialize in one particular industry, leaving it vulnerable to economic instability and limiting international investment. Sometimes countries decide to isolate themselves, such as 14th century China.

There are a variety of reasons that periphery countries remain the way they are. One important factor that keeps countries in the periphery is the lack of development of technology. Another way periphery countries come to be is either the lack of a central government or the periphery country is under the control of another country. Periphery countries are known for exporting raw goods to core countries. What tends to happen is the maximum gain a periphery nation could earn is less than needed to maintain an equilibrium between costs and revenues. One thing periphery nations could do is to stop the increase of exports. At the beginning of the 19th century, Asia and Africa were considered periphery and their lack of development enabled the United States and Germany to remain successful core nations.

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