Theories of Development: Marxism, Dependency Theory, and World System Theory Flashcards
(37 cards)
Who proposed this theory?
Andre Gunder Frank (1969)
What does Dependency theory attempt to explain?
Why countries are less developed than others.
What two names did Frank allocate to different types of countries, give their definitions with an example?
1) Metropolis
- A developed country (America)
2) Satellites
- An underdeveloped country (Kenya)
What is the perceived relationship between these two types of countries?
Metropolises actively try to keep satellites underdeveloped to continue to exploit them and reap the benefits.
What are some defining factors for metropolises and what they do?
- Developed countries
- Colonial powers (e.g. Britain and the British Empire)
- Extract surplus value from satellites
- Economic growth through exploitation
- TNCs invest in satellites and get high returns
What are some defining factors for satellites and what they do?
- Underdeveloped countries
- Dominated by metropolis due to weaker economy or military
- Wealth is extracted from them
- Kept underdeveloped via trade with metropolises
- Foreign investment transfers wealth from the rich to the poor
Briefly describe what Frank (1969) meant by a ‘chain of dependency’.
A chain that runs from metropolises to merchants in satellites in which satellites are dependent on metropolises due to the surplus value they take from their countries leaving them in poverty and fighting to pay off debts from IMF, etc.
Define ‘colonialism’.
Gaining full control of a country that is often taken by force to exploit.
Define ‘imperialism’.
Extended a countries influence to others through colonisation or military force.
What did Frank (1969) suggest are the 3 stages of underdevelopment in the growth of capitalism?
1) Mercantile Capitalism
2) Colonialism and Imperialism
3) Neo-Colonialism
Describe stage 1 of underdevelopment.
1) Mercantile Capitalism
- European merchants establish trading posts in the Southern Hemisphere through colonising new lands
- Other societies in the area rival European economic development and cultural sophistication
- However Europeans have more sophisticated technology with new diseases decimating indigenous populations wealth was exported back to Europe
Describe stage 2 of underdevelopment.
2) Colonialism and Imperialism
- European countries establish colonies overseas
- They would then use local farms for cash crops (e.g. coffee) which are needed by the empire
- This can cause ‘mono-cultures’ that are dependent on the agriculture they harvest
- In the triangular trade, Europe would send goods (e.g. textiles) to places in Africa that would then send slaves to the Caribbean who would then send goods (e.g. sugar) back to Europe that are processed and sold throughout the empire
- Around 8/10 million Africans who were transported died on the journey
- Colonialism causes borders to be imposed on countries (e.g. the Conference of Berlin 1985) that creates divisions maintained by colonial powers than can cause issues such as the Rwanda genocide (Hulus and Tutsis)
Using data from the HDI 2015, identify 2 examples of countries at the bottom of the index and why.
1) Niger - Colonial power of France who only allowed independence in 1960
2) Guinea - Colonial power of Portugal who only allowed independence in 1974
Define ‘Neo-Colonialism’.
The attempt by former colonial powers to retain dominance over former colonies which have achieved formal independence.
What did Jary and Jary (1991) define neo-colonialism as?
The process whereby advanced industrial countries dominate third world countries.
Describe stage 3 of underdevelopment.
3) Neo-Colonialism
- Colonialism collapsed due to uprisings but exploitation continues due to unfair economic practice
- Southern Hemisphere still reliant on them for things that are exported and have falling prices in their countries (e.g. coffee) and so are sold back to them for higher prices
- Loans from developed countries maintain dependence on Western aid and trade and so remain underdeveloped
What did Theresa Hayter (1981) refer to cash crops as?
False riches for developing countries due to cash crops being exported and with falling prices due to their increased need and so overall earnings go down due to still having to import things from other countries.
List 5 effects of neo-colonialism.
1) Overproduction of primary products
2) Tariffs
3) Commodity prices
4) Western Inflation
5) Aid and debt
Using an example, briefly explain overproduction of primary products as an effect of neo-colonialism.
- Satellites want to sell products to boost economy and pay off loans and so are dependent on agriculture
- Overproduction reduces price due to excess
- E.g. only 8p of a £1 chocolate bar goes to the farmer who exported the cocoa
- Processing occurs in West and so they benefit not developing countries
- Natural disasters and political instability can cause prices to fall in Satellites
Briefly explain tariffs as an effect of neo-colonialism.
- Tariffs are a tax that results in goods becoming more expensive than home produced goods
- They keep Satellites underdeveloped by continuing dominance
- Prices reduce as local producers try to compete with the cheap imports from Metropolises
- Food aid can demotivate farmers through export dumping (when countries import at lower prices than local)
Using an example, briefly explain commodity prices as an effect of neo-colonialism.
- Prices are sometimes out of the hands of the producers
- Instead they are set by commodity speculators located in Metropolises
- In 2006 it was estimated by the Merill Lynch bank that commodities were trading at prices 50% higher than they would have been without speculators
- Any fluctuation in world’s money market may burst this financial bubble (a price that exceeds the actual value)
Using an example, briefly explain Western inflation as an effect of neo-colonialism.
- Subsidies and tariffs bolster the economy of Metropolises as over the past 30 years, prices of manufactured goods produced by Metropolises have risen
- Yet the prices in Satellites of the same goods as primary products have fallen
- Hayter (1981) argues the concept of false riches from cash crops applies to this in that overproduction of them to gain money causes reduced price
Using an example, briefly explain aid and debt as an effect of neo-colonialism.
- Aid from IMF and World Bank to support Satellites
- Loans and debt may be paid off via cash crops , such as coffee and sugar
- 58% of GDP comes from agriculture in Sierra Leone
- Prices fall due to overproduction
- Exploits Satellites as keeps them dependent on Metropolises to keep them underdeveloped
- Almost all of Zambia’s copper mines are owned by corporations in the West due to being in debt to the IMF
State this theory’s 2 solutions to development.
1) Moving out of dependent relationships
2) Associate development
