Dependancy Theory

Dependancy Theory

1. General overview

   • Not internal factors but external factors (capitalism)
   • Global Capitalism disadvantages poor countries- need them to stay poor so we stay rich
   • To develop, LEDC'S must cut all ties to Capitalism and the West
   • Highlight where we got our injection of wealth from the Slave trade ad colonialism
   • Can explain the link between ex colonies and lack of development/ wealth

2. Andre Gunder Frank

   • origins of dependancy lie with slavery and colonialism both of these helped to kick start the industrial revolution
   • 1. World Trade
     • Core and peripheral nations (rich and underdeveloped)
     • Peripheral nations sell the core their primary goods and low value raw materials and the core nations add something too them and sell them back as high value added products
     • only person who benefits is the core nations by keeping the peripheral nations poor
   • 2. TNC's
     • Operate in more than one country and have no clear home
     • They seek to maximise profits by moving production to cheapest locations and have geographical flexibility and are safe from the law e.g Nestle
     • Simpson and Sinclair- dominate the capitalist world economy and have greater power over LEDC's. TNC's are not accountable for their actions in lw and many are accused of interfering in the politics of LEDC's
   • 3. Aid
   • Foster Carter- the ultimate satellite is a landless, rural labourer- discussing how powerful TNC's are and how they can negatively impact LEDC's
   • no discussion of Home-grown elites that are exploiting countries
   • John Goldthorpe - colonialism created infrastructure
   • Cannot explain why some countries are more exploited than others