Good day everyone, this is Kalijane Miranda, your reporter for the day, and I will be discussing about the modern world. I know all of us is better familiar in the terms modern world. Some of you may say or talk about technologies, innovations, changes, internet, and mainly the social media. However, are you aware that global economy is part of our modern world? It is not just about how technology helps in the industry or agriculture, but also how could it be able to make profits around the globe because of modernization.
This history of colonialism inspired American sociologist Emanuel Wallerstein's model of what he called the capitalist world economy. This model by Emanuel Wallenstein, which is called the Capitalist World Economy, shows how the global economy is changing. run through its countries. It talks about how resources and goods circling around the globe and he termed this idea such as core, periphery, and semi-periphery. Wallerstein described high-income nations as the core of the world economy while periphery are those countries with low income and middle-income countries are considered the semi-preparate core is the manufacturing base of the planet where resources funnel in to become the technology and wealth enjoyed by the western world today part of the world while whose natural resources and labor support the wealthier countries first as colonies and now by working multinational corporations under neocolonialism.
While semi-preparatory, are countries that have closer ties to the global economic core so they are in the average level of profit and they tend to make it to the core to show you the model as you can see in the picture from core to semi-periphery to core shows the cycle of resources from core with high profit consumption to both semi-periphery and periphery Semi-preparations tend to be balanced to both countries. Meanwhile, preparation supports both with cheap labor and raw materials. So, we will notice the inequality of trade.
To explain more the system, the preparation remains economically dependent on the core in a number of ways which tend to reinforce each other. So, to tell you the circumstances. Poor nations tend to have few resources to export to rich countries.
So poor nations could not afford to export the resources to rich countries in which malaking tulong sana dapat for their own development. With that instance, corporations can buy these raw materials cheaply and then process and sell them in richer nations. So as a result, the profits tend to bypass. the poor countries dahil nga nabili na siya ng malalaking corporations at ibinibenta sa rich countries ng mas malaking halaga na nagdudulot nito ng pag-unlad. ng mga korporasyong ito samantalang ang mga may hirap na bansa ay nalilikdangan ang malaking development.
Another, poor countries are also more likely to lack industrial capacity so they have to import expensive manufactured goods from richer nations. All of these unequal trade patterns lead to poor nations owing lots of money to richer nations and creating debt you that makes it hard to invest in their own development so the loser here is the one who is given the poor nation because of their incapability of affording or making development of their own because of lack of resources so it is a Malaking utang sa mga malalaking bansa at nahihirapan sila na bumuo ng sariling development without the help of other countries. So as what I've said before, the periphery remains economically dependent on the core, which is nagre-result ng patuloy na pagyaman ng mayamang bansa at ang pag-remain na mayhirap ng mga mayhirap. In some, under dependency theory, the problem is that there is a lack of global wealth.
It is that we do not distribute it well. So, may hinuha natin dito na hindi problema ang resources, kundi ang problema ay ang maling pag-distribute ng goods o ang maling pag-ikot ng ekonomiya ng mundo. development is not in a good condition because there are countries that have risen and there are countries that have left. There is also a lack of competence in the countries that is the reason why the poor countries do not continue to rise.
So it's sad to think about it but that's how the world is now. There is no unity, though resources are rotating, but it's not fair and it's not equal. That would be all and thank you.