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Although periphery nations are exploited by core countries, there is a purpose to the unequal exchanges of goods. For instance, the core countries have an incentive to gain a profit and this enables the world market to further grow. At times, there is a change in the balance of trade between the periphery and core countries.
For Wallerstein, core countries do not exploit poor countries for two basic reasons. Firstly, core capitalists exploit workers in all zones of the capitalist world economy (not just the periphery) and therefore, the crucial redistribution between core and periphery is surplus value, not "wealth" or "resources" abstractly conceived.
A world map of countries by trading status in late 20th century using the world system differentiation into core countries (blue), semi-periphery countries (yellow) and periphery countries (red), based on the list in Dunn, Kawano, Brewer (2000) Developed countries are shown in blue (according to the International Monetary Fund, as of 2008).
This theory postulates a third category of countries, the semi-periphery, intermediate between the core and periphery. Wallerstein believed in a tri-modal rather than a bi-modal system because he viewed the world-systems as more complicated than a simplistic classification as either core or periphery nations.
A world map of countries by trading status, late 20th century, using the world system differentiation into core countries (blue), semi-periphery countries (yellow) and periphery countries (red). Based on the list in Dunn, Kawana, Brewer (2000).
Countries tend to fall into one or another of these interdependent zones core countries, semi-periphery countries and the periphery countries. [ 1 ] [ 2 ] Resources are redistributed from the underdeveloped, typically raw materials-exporting, poor part of the world (the periphery) to developed, industrialized core.
The theory of the interstate system holds that all states are defined through their relationship to other states or through participation in the world economy, and that divisions between states help to divide the world into a core, periphery and semi-periphery. [1] [2]
Contemporaneously, a mode of economic criticism which separated the world economy into "core" and "periphery" was developed and given expression in a project for political reform which "moved the terms 'North' and 'South' into the international political lexicon." [23]