Peripherality Concepts and Issues

1
Peripherality Concepts and Issues

• Aim To discuss the concept of peripherally and
  consider its implications for local economic
  development.

2
Peripherality (cont.)

• Where is periphery/core?
•  
• in Northern Ireland?
•  
• in the Republic of Ireland?
•  
• in the U.K.?
•  
• in the E.U.?
•  
• in the world?

3
Peripherality (cont.)

• WHAT is periphery/core?

4
Peripherality (cont.)

• Peripherality as remoteness from the centre of an
  economic system
• Peripherality as indicator of distance to
• substantial markets
•  
•   ? several regions in one economic system can
  be core but need not be economically central

5
Peripherality (cont.)

• CHANGING CORE - PERIPHERY RELATIONSHIPS
• Reminder
• 15th/16th century European maritime nations at
  centre of international trade.
• Core Spain, Portugal

6
Peripherality (cont.)

• 17th century Core moved north
• England, Netherlands, France
•  
• 19th century industrialisation.
• Core Britain.
•  
• 19th/20th century industrial production moves to
  the US and Germany.

7
Peripherality (cont.)

• Post World War II
• - The West, Eastern Bloc, Third World.
•   - Shift from British to US dominance
• - Emergence of Germany and Japan as leading
• manufacturing nations
•   - Manufacturing moving from core to periphery
• (Asia - Pacific Eastern Europe)

8
Peripherality (cont.)

• CHARACTERISTICS OF CORE AND PERIPHERY
• CORE
•  those areas where the dynamic sectors of
  production, the key economic decision- making
  units and the entities that wield power are
  concentrated.
• (Cuddy and Keane)

9
CORE (cont.)

• innovative
•  
• dynamic
• strong private sector

10
PERIPHERAL REGIONS/COUNTRIES

• have not developed a cohesive, horizontal
  production base
•  
• Majority of enterprises are small
•  
• Large enterprises often m/f units controlled by
  foreign capital. Little RD.
•  
• Significant government
• involvement in economic development

11
PERIPHERAL REGIONS/COUNTRIES (cont.)

• Dependency culture
•  
• lack of innovation
• lack of dynamism
•  
• information flow in one direction only
• core ? periphery
• weak linkages, small networks

12
PERIPHERAL REGIONS/COUNTRIES (cont.)

• Significant direct and indirect costs
•  
• - Transport
• - Postal
• - Information-gathering 
• - Storage
• - Absence of scale economies

13
PERIPHERAL REGIONS/COUNTRIES (cont.)

• HOWEVER
•  
• Impact of distance variable in international
  trade often very small or negligible
•  
• Price is often not significant in determining
  competitiveness of a product
•  
• Communication technology reduces impact of
  distance

14
PERIPHERAL REGIONS/COUNTRIES (cont.)

• It is quite clear that the thesis which holds
  that there
• are inherent economic disadvantages associated
  with
• periphery location is not substantiated. The
  debate
• continues
• (S. de Búrca)

15
SUMMARY

• What is periphery?
• Historical perspective 
• Characteristic features of core and periphery
• Possible effects of location on economic
  development

16
Peripherality (cont.)

• Further Reading
•  
•   Fynes and S. Ennis, Competing from the
  Periphery, The Dryden Press, 1997.
•   Begg, I., Mayes, D., Peripherality and
  Northern Ireland. National Institute Economic
  Review. Nov 1994.
•   http//www.strategy2010.com