What is the difference between the core and periphery in dependency theory?

In dependency theory, the distinction between the core and the periphery is fundamental to understanding global economic inequality and the persistence of underdevelopment.12

• The Core: Consists of industrialized, wealthy nations—primarily in the Global North—that possess strong central governments, advanced technology, and the capacity to transform raw materials into high-value finished goods. These nations control international commerce and accumulate capital surpluses through their dominant position in the global market.12
• The Periphery: Comprises less-developed nations, often in the Global South, whose economies were historically restructured by colonization to specialize in the export of raw materials, cash crops, and foodstuffs. These countries often rely on cheap labor and lack the industrial infrastructure of the core.12

Dependency theory argues that this relationship is inherently exploitative. The periphery is "drained" as it sells low-priced raw materials to the core and purchases expensive finished goods in return. This unequal trade cycle depletes the capital necessary for the periphery to upgrade its own productive capacity, thereby reinforcing a cycle of dominance and dependency that thwarts independent development.12