Question

Discuss the relationship between nodes/cores and peripheral regions. Use BC’s forestry sectors to explain that relationship in a staples economy.

Answer 1

The sociologist Immanuel Wallerstein proposed the world systems theory that stated there is a world economic system wherein the few countries gains while others are exploited. The theory established three-level hierarchy approach to economics which included core, periphery, and semi-periphery regions. The core regions dominate and exploit the peripheral regions for raw materials and labour. The peripheral nations depend on core regions for capital.

BC is often categorized as a staple economy. It is mainly depending upon the income-generating capability for the resource-based exporting industries; and especially the industry of the forest product. Consequently the cyclical nature of global market prices for resource based commodities will have an impact on the performance of the economic activities. Moreover is vulnerable to the price movement. The stable approach will be applicable as the resource intensive sectors i.e. staple exports are leading sector and sets the pace for growth of economy