Chapter 4.4 Dependency theory and underdevelopment Flashcards
Where did dependency theory originated?
Latin America in the 1940s and 1950s
Why did Latin America, after colonial rule, found themselves in a state of economic dependence and underdevelopment?
Dependency theorists argued that there is unequal patterns of exchange in the international economic system
What caused the underdevelopment of the South according to dependency theorists?
Capitalism
What was Andre Gunder Frank’s famous words?
Capitalism was responsible for the development of underdevelopment
What made developing countries exposed to the exploitative nature of global capitalism?
Integration into the global economy
What the key mechanism through which exploitation took place?
Unequal trade
What does it mean by developing countries suffering from falling terms of trade?
prices of the south exports were falling relative to prices of the imports from North
Commodities vs manufactured
What is the other explanation for Southern dependency?
role of multinational corporations
What are the similarities of Marxism and Dependency theory?
by focusing on economic forces of global capitalism as represented by international trade relations and MNCs, dependency theory provides a materialist interpretation of the international system
by viewing international economic relations in dichotomous terms as conflict between North and South, recreates class conflict in a global scale
What are the differences between Marxism and Dependency theory?
Marx viewed colonialism and integration into global capitalism as a positive force while dependency theory argue that global capitalism is holding back development efforts in South. Progressive to static.
Marx viewed capitalism as mode of production focusing on the ownership of the means of production while dependency theorist define global capitalism by mode of exchange, where unequal exchanges takes place
When was dependency theory influential in many developing countries?
1960s and 1970s
What strategy was applied by dependency theorists?
Import substitution
What does import substitution aimed for?
improving the terms of trade and reducing dependence on foreign companies
At the level of United Nations, what did dependency thinking influenced?
the campaign of New International Economic Order
What was challenging dependency theory?
economic success of the East Asian economies that was based on an export led growth strategy
