The KOF Index
This index was fist introduced in 2002 & then updated in 2008. It focuses on 3 main factors of globalisation:
This looks at the actual flows of goods, capital and services between countries. It also considers restrictions to trade such as tariffs & quotas – higher trade restrictions reduce the ranking.
This focus on 3 areas.
- Personal contacts: (international telecom traffic, tourism levels, Government workers transfers & volume of international letters sent & recieved).
- Information flows: identifying flow of ideas & images ( no of internet users/100 people, % of households with tv set, trade on international newspapers).
- Cultural proximity: adoption of cultural products services in other countries (import & export of books, no of McDonalds restaurants & Ikeas/country.
This takes into account how many international organisations the country is involved with. Its contribution to UN peace keeping missions. The number of high commissions & embassies that are in a country.
Global Core & Periphery
Traditionally there has existed a North/South core and periphery divide in global senses. In recent decades this distinction has become increasingly blurred. With trade blocs being established, industrialisation in China, Brazil & India and the current financial crisis & recessions in Europe & USA there is much less of a distinct core/periphery.
Western Europe, North America and Australia can still be considered the core regions: high consumption, high output, high levels of education, significant intellectual property rights, strong influence in World Organisations (WTO, IMF, WB, UN).
Brazil China, India & Middle East can be considered as an intermediate stage (semi-periphery). They are industrialising, attracting FDI from the core, have large export earnings, rising GNI/capita & increasing levels of consumption.
Many African countries and parts of Latin America are still peripheral in the world economy. They rely on primary industry exports, lack industrialisation & still have low GNI/capita & consumption levels.