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FRANK'S DEPENDENCY THEORY 1960s

Background
1. Developed by A.G.Frank
2. World based around economically developed core and underdeveloped periphery
PERIPHERY
1. SOURCE OF:
  1. cheap raw materials eg India
  2. Skilled workers (brain drain) eg Poland
  3. Allies and debt repayments eg Africa
2. RECEIVED:
  1. expensive manufactured goods
  2. pollution
  3. political and economic ideology
  4. aid
3. Important for them to remain less developed for the system to work
  1. If they develop they would increase prices of raw materials etc
  2. we need skilled workers to come to our country - if periphery developed they are likely to stay there
Capitalist core keeps periphery in state of underdevelopment. Developing countries help developed countries to become wealthier
1. Periphery sells its resources for very little, whilst buying costly manufactured goods, tech, and loans from core
  1. Aid can be seen as a way of preventing periphery becoming too restless
Rise of NICs eg Asian Tigers argues against dependency theory as they are countries that have developed
1. However.. Taiwan, South Korea, Singapore and Japan all received economic support and aid from USA
  1. This was because USA felt strong capitalist economies in Asia were a way of containing communist China

FRANK'S DEPENDENCY THEORY 1960s

	Created by beth.nightingale about 11 years ago