International Development

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					 Radical Development:
Dependency Theories in
  the 1960s and 1970s
 Aims of the Lecture
• introduce key critiques of
  modernisation theory
• introduce dependency theories
• reflect critically on the work of
  dependency theorists
• note the continued relevance of
  dependency ideas
Structure of Lecture
1. Summary of modernisation
 theory and critique
2. Rise of dependency theory
3. Nature of dependency theory
4. Critically evaluating
 dependency arguments
   Development as
modernization: Summary
1. Development = economic growth
2. Industrialisation through
  investment of capital
3. Ignored history
4. Believed in being objective
5. Written mainly by men in the West
 1960s - new uncertainty
  about modernization
• War in Vietnam met with moral
  outrage in the US.
• New Left critics in UK such as EP
  Thompson argued that gap between
  rich and poor had widened by a
  factor of three between 1945 and
 Origins of Dependency
        Theory I
• Marxist scholars Prebisch and Furtado
  argued that Latin American countries
  were poor because of their relationship
  to richer countries in 1960s and 1970s
• Caribbean school of scholars sought to
  identify indigenous paths for the
  region’s development
Origins of Dependency
       Theory II
• Model of development proposed by
  Rostow and Lewis challenged by Paul
  Baran in his book The Political
  Economy of Growth (1957)
• Baran: economic devt of poor countries
  is against interests of rich countries
• Rich countries have exploited poor
      Gunder Frank I
• Economist
• Argued that rich colonial
  (‘metropolitan’) powers acquired
  wealth through exploiting weaker
  ‘satellite’ countries
• Frank’s model drew heavily on a
  reading of world history
    Gunder Frank II:
• The satellite countries supply cheap
  primary commodities to rich countries
• The rich countries use raw materials
  to produce relatively expensive
  manufactured goods, which are sold
  back to the peripheral countries
• Frank: this is a form of theft
 Continued dependency
• Frank argued that this theft is
  continuing through the policies of World
  Bank and IMF and through the activities
  of multinational corporations
• MNCs accused of introducing
  inappropriate new consumption
  patterns + out-competing local firms
 Implications of Frank’s
• Poverty not a result of misfortune
• Frank (1969): ‘poorer countries
  experience their greatest economic
  development…if and when their ties to
  the metropolis are weakest.’ [compare
  with current global downturn]
• Poorer countries face a choice between
  poverty or socialist revolution
  Dependency theorists
      key points:
• 1. Underdevelopment is a historical
  process , not a condition necessarily
  intrinsic to poorer countries
• 2. The dominant and dependent countries
  together form a capitalist system.
• 3. Underdevelopment is an inherent
  consequence of the functioning of the world
          Critique of
      dependency theory
• Narrow focus on exchange relations as
  basis for domination
• Doesn’t look at local processes of
  exploitation and exclusion
• Frank’s model undermined in 1970s by
  changing economic condition of some
  formerly poor countries: e.g. ‘Asian Tigers’
• Wallerstein believed that the periphery
  was being exploited by richer countries
  (core countries)
• Between core and periphery there are
  semi-peripheral countries that import
  raw materials from the periphery and hi-
  tech goods from the core and export
  semi-manufactured goods to the core
  and industrial products to the periphery.
Wallerstein’s World Systems Theory

      Hi-tech. Goods    Industrial end products

                     Semi-             Periphery

    Semi-manuf. goods      Raw materials
      Inadequacy of
   dependency theories
• Overlook social and cultural variation
  within ‘core’ and ‘periphery’
• Focus too much on the economy
• Socialist revolution not a workable aim ?
• Not possible to ‘de-link’ countries from
  world capitalist system
Conclusion: key points
• variety of ways in which
  development is defined and studied
• not one theory replacing another
• dependency theory provides a
  provocative set of ideas that are
  especially relevant at the current

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