Dependency theory term paper

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Dependency theory term paper

This idea is known as the Prebisch—Singer thesis. Prebisch, an Argentine economist at the United Nations Commission for Latin America UNCLAwent on to conclude that the underdeveloped nations must employ some degree of protectionism in trade if they were to enter a self-sustaining development path.

He argued that import-substitution industrialisation ISInot a trade-and-export orientationwas the best strategy for underdeveloped countries. Baran in with the publication of his The Political Economy of Growth. Some authors identify two main streams in dependency theory: Using the Latin American dependency model, the Guyanese Marxist historian Walter Rodneyin his book How Europe Underdeveloped Africa, described in an Africa that had been consciously exploited by European imperialists, leading directly to the modern underdevelopment of most of the continent.

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It was used to explain the causes of overurbanizationa theory that urbanization rates outpaced industrial growth in several developing countries. Technology — the Promethean force unleashed by the Industrial Revolution — is at the center of stage.

The Center countries controlled the technology and the systems for generating technology. Foreign capital could not solve the problem, since it only led to limited transmission of technology, but not the process of innovation itself.

Baran and others frequently spoke of the international division of labour — skilled workers in the center; unskilled in the periphery — when discussing key features of dependency. Baran placed surplus extraction and capital accumulation at the center of his analysis.

Further, some of that surplus must be used for capital accumulation — the purchase of new means of production — if development is to occur; spending the surplus on things like luxury consumption does not produce development.

Baran noted two predominant kinds of economic activity in poor countries. In the older of the two, plantation agriculture, which originated in colonial timesmost of the surplus goes to the landowners, who use it to emulate the consumption patterns of wealthy people in the developed world; much of it thus goes to purchase foreign-produced luxury items —automobiles, clothes, etc.

The more recent kind of economic activity in the periphery is industry—but of a particular kind. It is usually carried out by foreigners, although often in conjunction with local interests. It is often under special tariff protection or other government concessions.

The surplus from this production mostly goes to two places: Again, little is used for development. Baran thought that political revolution was necessary to break this pattern.

In the s, members of the Latin American Structuralist school argued that there is more latitude in the system than the Marxists believed.

They argued that it allows for partial development or "dependent development"—development, but still under the control of outside decision makers. They cited the partly successful attempts at industrialisation in Latin America around that time Argentina, Brazil, Mexico as evidence for this hypothesis.

Dependency theory term paper

They were led to the position that dependency is not a relation between commodity exporters and industrialised countries, but between countries with different degrees of industrialisation. In their approach, there is a distinction made between the economic and political spheres: Fajnzybler has made a distinction between systemic or authentic competitiveness, which is the ability to compete based on higher productivity, and spurious competitiveness, which is based on low wages.Dependency theory is a body of social science theories, both from developed and developing nations, which are predicated on the notion that resources flow from a “periphery” of poor and underdeveloped states to a “centre” of wealthy states, enriching the latter at the expense of the former.

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Term Paper: Country of Sudan Dependency Theory vs. Modernization … | 10 Pages

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Modernisation and Dependency Theory Term Paper by True Modernisation and Dependency Theory An introduction into the ideas of modernisation and dependency theory. Question 6 Which of the following describes dependency theory?

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Dependency Theory | Essay Example