Dev and Under dev Review Essay notes.docx

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University of Guelph
Political Science
POLS 2080
Adam Sneyd

Dev and Under dev Review Essay notes Instructions: Remember what I've mentioned in class: do your best to build an argument that integrates an aspect of the course material. For example, you could focus on a concept (neoliberalism), or on a theory (dependency) or on an historical trend or event and make an argument about how that concept, theory, trend or event relates to the book. Don't try to cover all the material from the course - just focus on an aspect that will help you to make a strong argument Notes: Dependency theory: Dependency Theory: An Introduction Vincent Ferraro, Mount Holyoke College South Hadley, MA July 1996 [Dependency is] historical condition which shapes a certain structure of the world economy such that it favors some countries to the detriment of others and limits the development possibilities of the subordinate economics...a situation in which the economy of a certain group of countries is conditioned by the development and expansion of another economy, to which their own is subjected. three common features to these definitions which most dependency theorists share: 1. dependency characterizes the international system as comprised of two sets of states, variously described as dominant/dependent, center/periphery or metropolitan/satellite 2. Second, 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, foreign assistance, communications, and any other means by which the advanced industrialized countries can represent their economic interests abroad. 3. Third, the definitions of dependency all indicate that the relations between dominant and dependent states are dynamic because the interactions between the two sets of states tend to not only reinforce but also intensify the unequal patterns. Moreover, dependency is a very deep-seated historical process, rooted in the internationalization of capitalism Andre Gunder Frank, one of the earliest dependency theorists, is quite clear on this point: ...historical research demonstrates that contemporary underdevelopment is in large part the historical product of past and continuing eonomic and other relations between the satellite underdeveloped and the now developed metropolitan countries. Furthermore, these relations are an essential part of the capitalist system on a world scale as a whole. According to this view, the capitalist system has enforced a rigid international division of labor which is responsible for the underdevelopment of many areas of the world. The dependent states supply cheap minerals, agricultural commodities, and cheap labor, and also serve as the repositories of surplus capital, obsolescent technologies, and manufactured goods. These functions orient the economies of the dependent states toward the outside: money, goods, and services do flow into dependent states, but the allocation of these resources are determined by the economic interests of the dominant states, and not by the economic interests of the dependent state. division of labor is ultimately the explanation for poverty and there is little question but that capitalism regards the division of labor as a necessary condition for the efficient allocation of resources. The most explicit manifestation of this characteristic is in the doctrine of comparative advantage. dependency models rest upon the assumption that economic and political power are heavily concentrated and centralized in the industrialized countries governments will take whatever steps are necessary to protect private economic interests, such as those held by multinational corporations. dependency theory explains underdevelopment dependency theorists, underdevelopment is a wholly negative condition which offers no possibility of sustained and autonomous economic activity in a dependent state. Dependency theory suggests that alternative uses of resources are preferable to the resource usage patterns imposed by dominant states. For example, one of the dominant state practices most often criticized by dependency theorists is export agriculture. The criticism is that many poor economies experience rather high rates of malnutrition even though they produce great amounts of food for export. Many dependency theorists would argue that those agricultural lands should be used for domestic food production in order to reduce the rates of malnutrition. dependency theorists rely upon a belief that there exists a clear "national" economic interest which can and should be articulated for each country dependency perspective is that its proponents believe that this national interest can only be satisfied by addressing the needs of the poor within a society, rather than through the satisfaction of corporate or governmental needs. Dependency theorists argue that these elites maintain a dependent relationship because their own private interests coincide with the interests of the dominant states. Dependency theorists argue that these elites maintain a dependent relationship because their own private interests coincide with the interests of the dominant states. dependency relationship is a "voluntary" relationship in the sense that these elites are typically trained in the dominant states and share similar values and culture with the elites in dominant states. elites in a dependent state are consciously betraying the interests of their poor; the elites sincerely believe that the key to economic development lies in following the prescriptions of liberal economic doctrine. Web source: Lecture notes: ( 16 sept/ 2010): Prof: Dr. Adam Sneyd Lecture 2: Explaining Underdevelopment: Dependency dependency theory is a product of the 3 world rd growth of rich countries has impoverished 3 world countries ( lecture 2: explaining under development: Dependency) dependency thinkers argue that capitalism began to develop into a world system centuries ago by tying people every where together and changing social structures dependency theory is related to Marxism rd the forces of international capitalism has continued to block the progress of the 3 world from a dependency perspective; the expansion of the industrial world shaped the structure of the 3 world African societies have been exploited by capitalism for centuries The Atlantic triangular trade demonstrate how under dev was actively created by European capitalists Transnational firm and investors still dominate host countries Dependency thinkers continue to see any level of industrialization in the third world as weak and dependent. Dependency thinkers recognize that there is a growing elite capitalist class in the periphery, but do not believe that third world elites are autonomous from rich world banks, firms, and govts They are considered to be dependent upon the capitalist core countries
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