Transcript Lecture 9.1 - Midlands State University

Lecture 9.1
DEPENDENCY THEORY
Introduction
Proponents: Walter Rodney, Samir Amin, Claude Ake,
Wallestian, Andre Gunder Frank etc.
A. Focuses on the historical origins and the
subsequent development of underdevelopment.
Basic tenet that all contemporary societies are
integrated into a single world economic system, the
capitalist system
Lecture 9.2
• A. Basis its roots in the Latin American
historical experience
• 1. which had been long in long contact
with European imperialism.
• 2. Been colonized in the 15th century
BC and did not regain independence
until first two decades of the 19thh
century.
Lecture 9.3
• A. In the 1960s social scientist begun to
construct theories to explain the inability of Latin
American countries to escape from limits
imposed upon them by their former colonial
powers and by both political and economic
dominance by the USA.
• B. Dependence- means a situation in which the
economy of certain country is conditioned by the
development and expansion of other economies
to which the former are subjected.
• C. Sometimes termed neo colonialism- the
survival of the colonial system in spite of formal
recognition of political independence in emerging
countries.
Lecture 9.4
• A. Tenets:
• 1. All developing and underdeveloped states are
depended on the developed as for technology,
finance and capital, monetary systems and trade.
Capitalist has monopoly over means of
production.
• 2. Dependency and monopoly is synonymous
with control of exploitation.
• 3. Dependency is a result of the incorporation of
the developing countries into the capitalist
system
Lecture 9.5
• 1. Incorporation was a result of imperialism
and colonialism which saw the building of the
first networks not for the integration of all
countries economies but for the facilitation of
the exploitation of raw materials to the
capitalist center
• B. Solutions:
• 1. Development can only be realized if
capitalism is overthrown.
Lecture 9.6
• 1. Self-reliance through import substitution,
rapid industrialization behind high tariffs.
• B. Thomas. B identified 3 components of self
reliance:
• 1.partial disengagement- reducing proportion
of trade, monetary and technical assistance
with capitalist center
• 2. Restructuring relations- deliberate fiscal
and monetary policy aimed at altering
consumer values.
• 3. reassociation
Lecture 9.7
• A. Reasons for failures:
• 1. Third world industries had no
comparative advantage thereby creating
inefficient industries
• 2. The strategies were not aimed at export
led growth hence crippled performance of
their economies.
• 3. Third world markets are small and
products cannot be absorbed completely by
the domestic market
9.8
• 1. Due to excessive protection the
quality of goods diminished
• 2. Because of the need to imports
machinery and technology there was
Balance of payment and debt problems.
9.9
• A. Critique of the theory:
• 1.criticised for believing that the problems faced
by LDCS are external rather than internal.
• 2. Degree of exploitation cannot be measured
• 3. Criticized for circular reasoning (the chicken
egg reasoning) underdevelopment and
dependency.
• 4.use of single independent variable
• 5. Tends to emphasize conflict, revolution and
violence
• 6. Failed to define development
9.10
• A. Has contributed to the understanding of
the mechanism of poverty and
underdevelopment, the complexity and
intensity of interaction between the developed
and developing countries, the impact of
internal
• B. Alliance is not alliance of countries but
class in the center and ruling class in the
periphery
• .
9.11
• A. Bourgeoisie in the periphery are being
bought by those in the center (collaborators
within classes in the center. WHO WILL
DELINK?
• B. Its survival is dependent on this, hence it
cannot be nationalistic- at most it is
comprador.
• C. It does not mean that every ruling class is
comprador others are nationalistic
Lecture 9.12
• A. It’s a symbolic relationship – It is but is
there is commonality of interest.
• B. Parasitic class –because it feeds upon its
own people(translated also to international
arena).
• C. Strategies –import substitution-Who will
get what.
• New International Economic O
rder1970s (It has died/ failed )
• realigning –South Co-operation ( G77,
OAU)
Lecture 9.13
• ? If ruling is Comparable why do they
need to realign with others .
• V.?Singapore developed as a result of
linkage with the west-Opened up the
economy for MNCs hence became a
regional headquarters
•
Lecture 9.14
• A. BENEFITED:
• - Employment, Infrastructure, Generates
economic spill off to the locals
• Foreign exchange $90 billion exchange
reserves
• 4 million population, 1 million
foreigners, 3 and ½ thousand MNCs
• Y. United Arab Emirates- success has been
achieved by opening up