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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