Download Dependency theory

Dependency theory
AIM
To study the political economy of Africa through the
model of the dependency path or theory
Defining dependency theory
 Liberal reformers,Prebisch, the Marxist Andre Gunder Frank and the




world systems theorists Wallenstein-the intellectual mind behind
dependency theory
By def: dependency can be defined as an explanation of the eco dvnt of a
state in terms of the external influences---political, economic and
cultural—on national development policies
NB//How do external players impact on socio,eco and poli devnt of a
country(Osvaldo Sunkel. 1969)
Dos Santos (1970), in his def of structural Dependence, defined it as an
historical condition which shapes a certain structure of the world
economy such that it favors some countries to the detriment of others
and limits the dvnt possibilities of the subordinate eco.
NB// it is a situation in which the economy of a certain group of
countries is conditioned by the development and expansioning economy
of others
Cont.
 Key to the above definitions are key characteristics of a state of
dependency where the international system is comprised of two sets of
states i.e. dominant and dependent or the centre and the periphery or
metropolitan vs. satellite.
 The dominant states are those advanced economically or the OECD
(Organisation of Economic Co-operation and Development).
 Latin America, Asia and Africa-are deemed the dependent or less
economically developed.
 Central message to the dependency theory is that relationships between
Developed and less Developed are unequal (talk of unequal patterns of
relationship)
 That internationalization of capitalism has deepened the dependency
syndrome for the less economically developed.
 Looking at the present underdevelopment of many nations, dependency
theories hold that inequalities among nations is an intrinsic part of
interactions among nations.
The structural part of Dependency
 The ques is, ‘ is dependency due to capitalism or unequal global power
structures?
 That capitalism is central to the rigid international division of labor
which is responsible for underdevelopment of many areas in the world.
 That unequal power structures work to the adv of capitalists
 Weak and developing states (dependent) simply cheap minerals, agric
produce and cheap labor and the prices are determined by the eco
interests of the dominant
 Same to terms and conduct of trade
 That there is no comparative advantage in the manner in which trade is
conducted.
 Division of labor and specialisation is deemed a condition for allocation
of resources
 That poli power and eco power are heavily centralised and concentrated
in the industrialised countries
 Same assumtion is adhered to the Marxist theories of imperialism
 The thin line btwn eco and power means that states will adopt whatever








measures necessary to protect their eco interst e.g. through
multinational corporations
Not confuse marxism and dependency theory
Marxists talk about the reasons why imperialism occurs, while
dependency theory explain the consequences of imperialism
In their definition of underdevelopment, dependency theorists say it is a
wholly condition which offers no possibility of sustained and
autonomous economic activity in a dependent state
For imperialism-at times- war is to be waged in order to get eco spheres
of influence
But dependency, the relationship is self-perpetuating and no war is
waged
That acts of colonialism as responsible for poverty in Africa.
Walter Rodney’s model of the centre-periphery Relationship-that the
development of the centre- is the underdevelopment of the periphery
So called centre-periphery relationship
Dependency theories
 Rau Prebisch-Director of the UN Eco Commission for Latin America







pivotal/protagonist in the development of the theory in the 1950
Main thesis/concern was that eco growth in the developed or industrialised
countries of the N, did not necessarily contribute to growth in the poorer
countries- They focus on the causes of persistence in poverty
Building from the Marxist paradigm-argued that persistence poverty is a
consequence of capitalist exploitation
Acc to Prebisch-poor countries exported primary commodities to the rich
countries who in turn manufactured products out of these commodities and
sold them back to the poor countries
That the “value added” by the manufacturer is always higher than that of the
producer.
3rd world forced to buy at a price dictated by the buyer
The poor countries shld look for import substitution to avoid exorbitant prices
by the rich/dvd work
That the world capitalist system favored the rich and while impovarishinng the
poor
Further Debates
 Paul Prebish- structural inequalities in trade and other
economic issues---That international economic order is
based in favour of the industrialized states.
 WTO- conduct of trade matters-unfair-Africa for eg forced
to sell their products at the price dictated by the buyer.
 Robert Guilpin- that international trade is hinged on the
zero-sum game/process-eg the rise of profits in one state
should equal the decrease of profits in another state.
 Such is said to increase the dependency syndrome.
 MNCs and other non-state actors- instruments for neo form
of colonialism ---they operate in the 3rd world but profits or
proceeds are repatriated back to Europe.
 Tries to account for the economic gap between the N (Rich)
and S (Poor).
 Attributes poverty and underdevelopment in 3rd World states
to external conditions-poverty not a natural phenomenon.
 That dependence is a virus that inhibits state autonomy over
eco and resources.
 Structural inequalities-exploitation by the developed and
inequalities existing in the conduct of economic issues.
 Walter Rodney, How Europe Under Develop Africa- Centre
–periphery relationship (exp)
 Acc to the theory, the underdeveloped S must break away
from yoke of bondage and become politically and
economically independent.
 That the S should chant their own destiny-emancipation from
mental slavery/ decolonization of their mind.
 The theory as well assumes that expansion of capitalism is
responsible for the global inequalities-exploitation of workers
esp by MNCs
 Acc to Andre Gunda Frank-Third World are underdeveloped
because of colonialism-passing resources to the imperialist/
colonial states.
 Also that integration into the global capitalist system
perpetuates underdevelopment and inequalities.
 Relationships/cooperation between North and South as
horse and Rider type- No mutual benefits
 That the crime of international economic order is not that
many peoples live in conditions of great poverty esp in
developing nations, but that a large eco gap exists btn N and
S
 That the gap is harmful because it decreases the freedom of
action of poor states, making them vulnerable to dvpd
industrial states.