economics
DEPENDENCY THEORY: - Economic development theorists over the last few centuries have developed models for explaining the “undeveloped-ness” of countries in the third world countries. From Durkheim to the International Monetary Fund (IMF), we have, time after time, come to witness the rise and fall of development theories and their explanations for the predicament that many poor countries face. Dependency theory has (more so than others) lasted a great deal of time in the framework of the international sphere in terms of presenting a model in which development and “underdevelopment” can be assessed. To understand dependency theory, it is necessary to understand the meaning of dependency. Therefore to this end, Dependency can be defined as an explanation of the economic development of a state in terms of the external influences--political, economic, and cultural--on national development policies (The Journal of Development Studies, Vol. 6, no. 1, October 1969, p. 23).
There are three common features to these definitions which most dependency theorists share.
First, dependency characterizes the international system as comprised of two sets of states, variously described as dominant/dependent, center/periphery or metropolitan/satellite. The dominant states are the advanced industrial nations in the Organization of Economic Cooperation and Development (OECD). The dependent states are those states of Latin America, Asia, and Africa which have low per capita GNPs and which rely heavily on the export of a single commodity for foreign exchange earnings. Secondly, both definitions have in common the assumption that external forces are of singular importance to the economic activities within the dependent states. These external forces include multinational corporations, international commodity markets, and foreign assistance. Most dependency theorists regard international capitalism as the motive force behind dependency relationships. Andre Gunder Frank, one of the
There are three common features to these definitions which most dependency theorists share.
First, dependency characterizes the international system as comprised of two sets of states, variously described as dominant/dependent, center/periphery or metropolitan/satellite. The dominant states are the advanced industrial nations in the Organization of Economic Cooperation and Development (OECD). The dependent states are those states of Latin America, Asia, and Africa which have low per capita GNPs and which rely heavily on the export of a single commodity for foreign exchange earnings. Secondly, both definitions have in common the assumption that external forces are of singular importance to the economic activities within the dependent states. These external forces include multinational corporations, international commodity markets, and foreign assistance. Most dependency theorists regard international capitalism as the motive force behind dependency relationships. Andre Gunder Frank, one of the
References: Namkoong, Y (1999). Dependency Theory: Concepts, Classifications, and Criticisms the international Area Studies. Gunder Frank, Andre. “Economic Dependence, Class Structure, and Underdevelopment Policy,” James D., et al (1972). Dependence and Underdevelopment Latin America’s Political Economy. Garden City: http://www.academia.edu/2271357/Understanding_Dependency_Theory_A_Comparative_Evaluation_of_Gun (1999):