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7/29/2019 Presentation6_SA64A

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Dependency Theory

Is the dependency critique of

world development relevanttoday?


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What is Dependency

Generally dependency is the reliance on a

person, or something for support, survival

or enhancement

In development studies dependency

speaks to a situation in which a particular

country or region relies on another for

support, survival and growth.


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What is the Dependency Critique?

A Neo-Marxist perspective that maintains that Third World countriesare Underdeveloped because of the activities of the First World.

Dependency theory holds that the condition of underdevelopment isprecisely the result of the incorporation of the Third Worldeconomies into the capitalist world system which is dominated bythe West and North America (Randall and Theobald 1998, 120)

Dependency Theory emerged in the 1950s as a critique ofModernization

Argues that these Classical theorists failed to recognized thatImperialism, Colonialism and Neo-Colonialism is solely responsiblefor the development of the First World and the subsequentunderdevelopment of the Third World.


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Background of Dependency

Critique

United Nation Economic Commission for LatinAmerica (ECLA). Proposal for a structuraleconomy based on Import-SubstitutionIndustrialization in Latin America. Generatedcritical response from Economist such as RaoulPrebisch and Celso Furtado.

Paul Baran.

The foundation of their ideas: ( internalconditions that affect growth) lack of economicgrowth because of lack of capital resources


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Features of the Dependency

Theorization The existence of a Capitalist World System

In this capitalist system countries are divided intoMetropoles and Satellites (Frank) or Core and Semi-periphery and Periphery (Wallerstein)

Core Countries/ are the Rich Industrialized Countries ofthe West, whose GDP and per capita income exceed 7%per annum

Peripheries are those countries whose annual rate ofgrowth is less than 5-7% and are primary producers ofgoods and services

Semi-peripheries: Newly industrialized countries, China,Singapore, Taiwan, South Korea (Asian Tigers), Cuba,Brazil, Venezuela, Mexico, Indonesia, Egypt, Portugal,Spain and Italy.


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Features contd

The capitist system operates where

peripheries/Satellites provide raw material

for the Core/Metrpole countries who

manufacture and sells it. Thus the basis ofdependency and Underdevelopment


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How Dependency Occurs

Emergence of Europes drive to capital accumulation,1500

Led to the colonization of Latin American, Caribbean,African and East Asian States.

The Extraction of Wealth (Natural Resources andCapital) from the colonies resulting in stagnation

Subsequent transfer wealth to the Europe facilitatingindustrialization and development (Walter Rodney: HowEurope Underdeveloped Africa)

The persistent of culture of dependency even aftercolonialism. Third World-Producers/ First WorldManufacturers


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Andre Gunder Frank

Ideas: Monopoly control of trade. Unequal

exchange between Metropole and Satellite

resulted in the extraction of Surplus Value

(Potter and Binns et al, 1999). Development and Underdevelopment are

opposite sides of the coin: the development of

the industrialized world was and is made

possible only by the correspondingunderdevelopment of the Third World (Randall

and Theobald, 1985, p. 107)


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Immanuel Wallerstien

Ideas: The existence of a total system ornetwork driven by the endless accumulation ofprofits

the perpetual and widening inequity amongstates is explained by capitalism and theinternational division of labour and theproduction (Kegley 2006, 141)

The International division of labour leads to thedevelopment of countries as core, periphery andsemi-periphery


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Assumption of Dependency

In general, the theory of dependency holds that

both political and economic dependency are

inversely and significantly related to economic

prosperity, that is the more dependent countriesare also less prosperous (Craig, 1996 thesis)

In order for these backward countries to

development they must disassociate themselves

from all relations with the First World.


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Criticism of Dependency

See economic growth as the main component of development

Maintain the idea that Tradition is the main obstacle to development

If Western colonialism and Imperialism is the main reason forunderdevelopment in the Third World, What aboout China, Ethopiawere colonies of western Europe and are developed.

Impractical ideas: If Third World Countries totally dissociatethemselves from First they will not gain development. Therelationship between Third world and First World is not dependentbut interdependent. Globalization

Undermines the ability of the States to charter development: (Russiaand Germany)

Does not explain the relevance of the Situation of the NewInternational Division of Labour.


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Is the Dependency relevant to

World Development today ? From Costa Rican beef to United states Hamburgers Mark Edelman.

Costa Rica became the third largest supplier to beef to the United States.1980s over 1 million hectares of land converted for cattle rearing.

The result- Increasing unemployment 47.7% and increase in importation ofRice and other food product including hamburgers and grind beef.

What explanation could be given for this?

The most logical: Dependency would outline that Costa Ricasunderdevelopment is as a result of such phenomena of developingcountries being primary producers and producing only what developedcountry needs

Dependency theory explains that development does not occur in isolation.But there are a number of internal and external factors that conditions it

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