PSCI 2102 Lecture Notes - Poverty Trap, 6 Years, Bourgeoisie
7 Jul 2014
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Class 3 psci2102b january 21, 2014. Raul prebisch had an understanding of why countries were having such a hard time. Discovered declining terms of trade and inelastic demand curves: inelasticity to your demand; doesn"t matter how much is produced, there is only so much that people want to consume, no matter how cheap it is. Ended up with a capital shortage, not enough money to reinvest: weren"t able to invest in more and more machinery, stuck in a poverty trap. So the global north turned said they would loan money via imf and. But this didn"t work out too well discovered that the reason it did not work out is dependency theory. Global south had been heavily integrated into world"s capitalist economy ever since 1492. Latin america was a giant production unit for europe, as well as africa and southeast. Were not undeveloped, but underdeveloped: transformation that marx predicted already happened everyone was transformed but in a different fashion.
