J Vol. XIV No. 3 September Dependency Theory: A Review Article. James L. Dietz. Both Fernando Henrique Cardoso and Andre Gunder Frank have been. something that has internal origin. In response to this theory, Andre Gunder Frank in propounded his. “dependency theory which saw the world’s nations as. In response to this theory, Andre Gunder Frank in propounded his “ dependency theory which saw the world’s nations as divided into a core of wealthy.
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The neo-Marxist dependency theory rejects the view that the people of LDCs are responsible for the failure of their societies gundet develop. Instead, Andre Gunder Frankthe leading dependency theorist, suggests that lack of development is because Western nations have deprndency under-developed them.
The periphery is kept in a state of dependency and under-development because the developed world requires cheap raw materials and labour. Historical exploitation — slavery and colonialism Frank argued that the trade in slavery resulted in tremendous profits for both slave-traders and plantation owners in the 18th century.
According to Paul Harrison, in the 18th century Europe was able to use its advanced military technology to conquer and colonise many parts of the Third World. First World countries exploited the colonies for cheap food, raw materials and labour. For example, land traditionally used for growing food was turned over to the production of cash andee for export.
International trade The way world trade is organised today is a legacy of colonialism. Most colonies have achieved political independence but their economies still tend to be based on exporting cash crops and raw materials to the West.
Moreover, many LDCs find it difficult to achieve full economic independence because many are overdependent on either one or two primary products or Western demand for those products. Therefore, any over-production or fall in Western demand can have a severe effect upon LDC economies.
Western nations further limit the export earnings of LDCs by setting the prices for many LDC products and setting tariffs and quotas which tax or limit LDC products entering the First World, especially manufactured products.
Neo-colonialism Frank and others such as Therese Hayter argue that traditional forms of colonialism are giving way to new forms: At the forefront of this type of exploitation are the multinational companies MNCs. In their search for profit, these companies allegedly exploit LDCs for cheap labour, cheap raw materials and new markets.
Multinationals The search for new markets encouraged Western companies to expand in size and market their products globally. After World War II, increasing numbers of companies started to produce manufactured goods in the LDCs, taking advantage of cheap labour, relaxed health and safety laws and low taxes. Simpson and Sinclair point out that MNCs now dominate the capitalist world economy and many have greater economic and political power than LDCs.
Moreover, the MNCs are not accountable for their actions in law. Others have been accused of environmental destruction and pollution and playing a major role in the eviction of native peoples from their land.
Moreover, some have been accused of marketing drugs and pesticides banned in the West. Their motive is primarily profit. Official depsndency Another form of neo-colonialism according to dependency theory is official aid. Bilateral aid refers to the flow of resources from one country to another — most usually in the form of loans but also as weapons, medicines and human expertise.
Most loans to the Third World involve interest. However, economies grow too slowly and long-term development projects such as irrigation schemes, dams, etc. In the meantime, the interest builds up and can eventually outstrip the initial loan.
Most of the countries in real trouble are extremely poor African states, e. Nearly a quarter of the aid African countries receive this year will be immediately repaid to the West to repay debts. In many Western governments including the UK announced that they were looking at ways in which LDC debt could be cancelled or reduced.
In the UK announced its intention to put nadre stop to tied aid. For Frank, development and under-development are two sides of a world process by which the First World developed at the expense of the LDCs.
Such poor countries are locked into a system that is almost impossible for them to escape. Frank also suggests a socialist revolution may be necessary in some LDCs to overcome the ruling classes who collaborate with the West.
However, Frank believes that sooner or later, the West would reassert its control. Criticisms of dependency theory John Goldthorpe and other liberals have argued that colonialism did have positive benefits because it provided LDCs with a basic infrastructure in terms of transport and communications.
Never colonised LDCs such as Ethiopia and Afghanistan experience severe problems today because they lack the infrastructure provided by the colonial powers.
Goldthorpe also points out that those countries without colonies such as the USA and Japan have performed economically better than those with empires. The Marxist, Frank Warren argues that colonialism and neo-colonialism were, on balance, conducive to development rather than under-development.
Despite extensive investment and aid, some LDCs have experienced little or frak economic growth.
Andre Gunder Frank & Dependency Theory | Our Politics
Some countries such as Bangladesh have grown poorer despite increased aid from the West over two decades. Skip to main content. Sign up Log in. Quick revise The neo-Marxist dependency theory rejects the view that the people of LDCs are responsible for the failure of their societies to develop.
Contemporary exploitation International trade The way world trade is organised today is a legacy of colonialism. Hayter argues that debt thepry a number of consequences. It leads to dependency. LDC governments may find themselves pressurised into accepting MNC investment, into making internal political changes and ensuring LDC support for Western strategic interests, e.
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Kenya was rewarded with aid for providing US forces with port facilities during the Gulf War. Debt contributes to high infant-mortality rates and low life-expectancy because the money spent servicing debt could be spent on improving the infrastructure of LDCs, especially health and education. Aid benefits the donor country because they can insist that future aid is tied, i. For example, it deependency estimated that for every British pound lent to LDCs, 70 pence is spent in the UK or spent on projects which primarily employ expertise from the donor country.
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