Flashcards
Dependency Theory
Flashcards do conjunto (14)
- 1Key points to mention in introduction of Dependency Theory- Neo Marxist Theory
-Developed by Frank - talks about Core and Periphery
-Poses the question: Why are so many countries in the world not developing?
-Found the answer was that the INTERNATIONAL SYSTEM was preventing them from developing because it was exploitative and had dominance of the West over LEDC's.
-There's an international division of labour where the periphery countries serve the interests of the core
-There's a class division between the rich and the poor in both peripheral and core countries. - 2Key TermsCore - Rich, metropolitan, developed countries of the West
Periphery - poor, satellite, dependent and underdeveloped
Semi-periphery - semi industrialised countries
Dependency = the vulnerable state of being exploited by core countries. - 3How is trade asymmetrical?Rich countries don't need banana's as they can buy them from many different sources. But poor countries critically depend on trade to get technology/machinery to develop their economies - so poor countries are dependent on the rich ones. They need manufactured goods and are forced to pay high prices, but they MUST sell their raw materials and agricultural products very cheaply. They are given false wants and needs (technology like iPhones) and sell the things they actually need like natural resources that help them to survive - food and water etc.
- 4Summary for causes of lack of development:-Global capitalism disadvantages poor countries
-Rejects the evolutionary view of modernisation - they depend on us
-It's not the poorer countries interest to work with developed countries
-Developed countries get benefit/profit through TNC's
-Originated in Latin America - the wealthy nations remain rich from the exploitation of poor countries - 5FrankCriticised modernisation theory and developed DEPENDENCY theory.
Argued modernisation theory by saying that developing countries have found it difficult to sustain development.
He argues that the imbalance between rich north and poor south derives from slavery and colonialism.
Useful: Frank argues origins of dependency link with slavery and colonialism. His theory offers and alternative to modernisation theory showing that external factors are the cause of lack of development.
Criticism: This lack of development isn't because of their deficiencies, it's because the rich countries deliberately under develop them. Maybe Frank is right, however, the reason they may not have developed is because of KLEPTOCRACY.
Some argue the historical eras of exploitation and slavery were so long ago that they have no impact today. Ethiopia was never colonised, however it is still a poor and developing country. L - this division of wealth has been used to keep the developing world underdeveloped ever since. - 6Slavery and ColonialismWealthy nations of the world got rich from exploitation of the poorer (colonial) nations.
Developing countries are still being exploited - maintaining the 'lavished'.
Colonialism helps to explain why we have civil wars in Africa - because they were colonised and separated. Colonies exploited for cheap food, raw materials and labour. The most fertile land appropriated for growing cash crops for export to west. New markets created for the industrial worlds manufactured goods - local industries that competed with colonial powers were destroyed of undermined by cheap, imported manufactured goods.
L - Explains where the West got their money from. There's a direct link from the poorest countries and the ex colonies from the West.
C - Could argue that Ethiopia wasn't colonised but is still poor and developing. Doesn't explain why every country hasn't developed yet. - 7Three types of Neo-Colonialism 1. WORLD TRADE-World trade encourages developing countries to become dependent upon primary products. Many LEDC's find it difficult to achieve economic dependence as they are over depending on the Western demand for their primary products. In addition, the income of developing countries is often dependent upon the volatile price of a single commodity.
Frank: The world system consists of the core nations and the peripheral nations. Peripheral sell core nations their primary products like raw materials and food - low value added products. The core nations sell natural high value added goods e.g. industrial products. They're poor because we make profit, adapt coffee beans and sell them back for much more.
Foster Carter: Suggests that the ultimate satellite is a landless, rural, labour and most likely female.
C - Hard for developing countries to gain money and power when they serve the interests of the core. Modernisation theory would argue embracing trade encourages development not suppresses it, e.g. NICs like Asian tiger economies. Explains why wealth in developing & developed world is maintaine - 8Why don't peripheral countries band together and overthrow the core?1. Military dominance of the West, e.g. the US overthrew any Latin American governments that tried to oppose the USA
2. Ideological commitment to the system: people believe capitalism is 'fair', similar to Marx's false class consciousness.
3. The existence of the Semi-periphery. Wallerstein: the semi-periphery generally does well so they tend to support the core. This prevents everyone from ganging up on the core. - 92. TNC'sTNC's operate in the most profitable way. They exploit by low wages, long hours and sweatshops of poor working conditions.
The World Trade Organisation (WTO) set up in 1994 by rich and powerful nations in order to reduce national trade barriers and to liberalise trade. At the centre of WTO are TNC's. They operate in more than one country and have no clear home. They seek to maximise profits by moving production to the cheapest locations. They have geographical flexibility and so they can easily shift resources and operations across the world. They are responsible for 3/4 of world trade and about 1/3 or all global output.
Simpson and Sinclair - argue TNC's dominate capitalist world economy and many have greater economic and political power.
It highlights exploitation, however Norberg argues that this is a necessary stage in the country's development.
Shows us how they use the poor countries to maximise profits by exploiting them by low wages, long hours etc. and therefore prevent them from developing as they don't have the money and power to do so. - 10TNC's continued...Hoogvelt: argue TNC's seek to make alliances with the LOCAL LANDED ELITES. - they lower resistance to the exploitative nature of their production processes and therefore gain access to Export Processing Zones (EPZ's). She highlights the benefits of TNCs horizontal flexibility whereby they have an increasing global interconnectedness of TNC's with other local firms. TNC's exploits vertical flexibility - the change within global firms. Describes TNC's as controlling semi-skilled workers: decreasing their security and rewards.
Sklair - impossible to ignore their engagement in political activities.
Schumpeter: 'creative destruction' - describes how industrial innovations serve o reshape capitalism. e.g. the decline of heavy industry and manufacturing in the West which is now service and high tech jobs instead.
Klein - TNCs destroy environment and the world's eco system and avoid their corporate responsibility. Argues their r - 113. AID AND DEBT CRISISAid loans money to poor countries in times of need. The countries are often so poor that they cannot afford to pay it off and take out a second loan to help them and it eventually builds up.
C - Logical idea or is the problem KLEPTOCRACY? Modernisation theory sees aid as promoting development and wealth.
Useful as the debt spiral explains why some countries suffer in poverty from which they cannot escape. - 12SOLUTIONS to DEPENDENCY1. Breaking away from dependency: 'isolation' from the capitalist system, e.g. North Korea or Cuba.
2. Import substitution industrialisation (ISI) whereby nations produce goods that normally would be imported. C - Isolation leads to poor living standards and Duncan Green shows ISI ultimately fails. - 13Criticisms of Dependency TheoryFrank failed to define what he meant by dependency as it is incredibly difficult to opperationalise and therefore difficult to test and measure accurately. Frank portrayed dependency negatively, but some argue the interconnectedness of the global economy demonstrates how capitalist countries are interdependent: the USA needs Canada and Taiwan as much as they need the USA. Marxists would argue that if core countries like USA need satellites as much as the other way around, this confirms the exploitative relationship and how trade INVARIABLE REFLECTS CORE NATION'S INTERESTS.
Modernisation theory argue TNCs & Aid bring benefits to developing countries pushing them towards the evolutionary goal of modernity. e.g the economic success of the TIGER ECONOMIES is attributed to Japanese and TNC investment. However, Marxist dependency theories would argue the Asian tigers are heavily in debt and the industrial base of these countries are heavily owned and controlled by TNCs. The workforce are v long hours for low wages. Therefore economic success has only benefitted the top 10% - 14More criticisms:Role of home-grown elites: could be argued that Frank ignores how western exploitation of peripheral nations is often achieved through partnership with local elites. These elites played a crucial role in slavery and colonialism and now benefit from neo-colonialism by sitting on the boards of TNC's and through KLEPTOCRACY using aid for personal benefit.
Goldthorpe - argues the positive contribution colonialism played in building up an INFRASTRUCTURE of road, rail, telecommunications, government, etc. Colonialism also introduced wage labour and a more efficient use of land by introducing farming techniques from the west. Points out countries without colonies e.g. Germany and Japan have performed economically better than those with empires like Britain.
Different levels of exploitation: Zimbabwe - poor living standards, Kleptocracy of its elite led by president - hard not to see the previous colony of Rhodesia as a more successful economy.
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- A-Level World FlashCards sobre Dependency Theory, criado por Georgia Davidson em 13-06-2016.
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- Georgia Davidson
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