Tuesday, September 24, 2013
Lecture 4 – Perspective on Underdevelopment: Dependency, Marxism and Imperialism
The Dependency Perspective
• Many variations of it, many point of views. Amongst people took moral point of view, from general perspective,
there were still difference.
• Key assumptions
o The World system, not the nation state as the unit of analysis
Economic system, not on internal processes.
Causes of problems of GS countries arose from the world system.
o Must examine history
Looking at current system, take a snap shot and notice the problems.
How it corporates into the world system.
Economic system, politics is involved.
The Reformist Strain of Dependency
• Looking at countries with their conditions,
• Economic Commission for Latin America – Raul Prebisch – 1940s
o ECLAbegan to publish working paper/documents that talked about the impact of the world economic
system on LatinAmerica
• Primary producing periphery
• The industrialized centre
o Produces good purchased from the periphery
• Unrestrained competition
o Creating deteriorating condition in the South
o Whereas, the products produced by the GS, fluctuate, high in price.
• Deterioration in the terms of trade
o Unfair trade system (ECLA)
• Bargaining power of developing countries in international trade be strengthened
• Stimulate industrialization through protection, foreign investment and national planning
o Neoliberalists are against it. ECLAis not in charge of economic regulating
o ECLAis blamed for all the problems in LatinAmerica later on.
• Create a LatinAmerican common market
o Many countries in LatinAmerica took the advice, to have something back to compensate the problems
Global Capitalism and Underdevelopment
Expansion of Europe was instrumental and repeating in the Global South
• Andre Gunder Frank (radical dependency)
o Well-known in Europe andAmerica
o Became the one everyone grasped onto
o His ideas were to have everyone critized. People were not aware of other writers
• Marxist Theories of Imperialism
o Inspired Frank
o Lenin’s theory of imperialism
Believed that global south countries were affected by the expansion of ‘monopoly capitalism”
View on capitalism: drew on Marx, argued that the developed countries needed to find markets,
their own markets at home were declining. Needed raw materials. Precipitated the market in
o P. Baran and P. Sweezy, 1968, Monopoly Capital
Expansion of world capitalism/colonialism POLB90
Tuesday, September 24, 2013
Ideas aren’t distinct
IMPERIALISM IMPEDED DEVELOPMENT
Radical Dependency: Andrew Gunder Frank
• Deterioration in the terms of trade.
• Industrial growth was not eliminating unemployment and underemployment
o Open up jobs, people were not absorbed into the formal labour force.
• Growth rates were declining
• Social inequality was not declining
o Attempted to construct a framework to help us understand why this is not happening
o Primary producing periphery, industrial centre.
• The benefits of industrialization were not trickling down
What is the metropole/sa