FRANK'S DEPENDENCY THEORY 1960s

FRANK'S DEPENDENCY THEORY 1960s

1. Background

   • Developed by A.G.Frank
   • World based around economically developed core and underdeveloped periphery

2. PERIPHERY

   • SOURCE OF:
     • cheap raw materials eg India
     • Skilled workers (brain drain) eg Poland
     • Allies and debt repayments eg Africa
   • RECEIVED:
     • expensive manufactured goods
     • pollution
     • political and economic ideology
     • aid
   • Important for them to remain less developed for the system to work
     • If they develop they would increase prices of raw materials etc
     • we need skilled workers to come to our country - if periphery developed they are likely to stay there

3. Capitalist core keeps periphery in state of underdevelopment. Developing countries help developed countries to become wealthier

   • Periphery sells its resources for very little, whilst buying costly manufactured goods, tech, and loans from core
     • Aid can be seen as a way of preventing periphery becoming too restless

4. Rise of NICs eg Asian Tigers argues against dependency theory as they are countries that have developed

   • However.. Taiwan, South Korea, Singapore and Japan all received economic support and aid from USA
     • This was because USA felt strong capitalist economies in Asia were a way of containing communist China