From a geographical viewpoint the hyperglobalist position has
important ramifications. The traditional ‘core–periphery’ model,
together with variants on this theme such as ‘North/South division’
and ‘developed/developing world’, are seen as outdated given the decline
in the importance of the nation-state as the unit of analysis. Rather, new
hierarchies of power are evolving, particularly surrounding the newer
international division of labour (see Chapter 4) and through networks.
States still attempt to manage the new divisions that arise between
social groups, localities and sub-national regions using redistributive
and welfare measures. These, however, are becoming increasingly
difficult to sustain and are being reformed. There are thus winners and
losers in the new global economy. Echoing neoclassical trade theory,
neoliberal hyperglobalists argue that the rise of the global free market,
while creating losers, makes everybody better off in the long run, and
will eventually create a homogeneous affluent and modern society. In
contrast, radical hyperglobalists argue that the new patterns of inequality
are likely to be permanent features. This harks back to neo-Marxist
inspired structuralist and dependency theories developed in Latin
America in the 1960s.