Dependency theory

1. Dependency theory AIM To study the political economy of Africa through the model of the dependency path or theory

2. Defining dependency theory • Liberal reformers,Prebisch, the Marxist Andre Gunder Frank and the world systems theorists Wallenstein-the intellectual mind behind dependency theory • By def: dependency can be defined as an explanation of the eco dvnt of a state in terms of the external influences---political, economic and cultural—on national development policies • NB//How do external players impact on socio,eco and polidevnt of a country(OsvaldoSunkel. 1969) • Dos Santos (1970), in his def of structural Dependence, defined it as an 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 dvnt possibilities of the subordinate eco. • NB// it is a situation in which the economy of a certain group of countries is conditioned by the development and expansioning economy of others

3. Cont. • Key to the above definitions are key characteristics of a state of dependency where the international system is comprised of two sets of states i.e. dominant and dependent or the centre and the periphery or metropolitan vs. satellite. • The dominant states are those advanced economically or the OECD (Organisation of Economic Co-operation and Development). • Latin America, Asia and Africa-are deemed the dependent or less economically developed. • Central message to the dependency theory is that relationships between Developed and less Developed are unequal (talk of unequal patterns of relationship) • That internationalization of capitalism has deepened the dependency syndrome for the less economically developed. • Looking at the present underdevelopment of many nations, dependency theories hold that inequalities among nations is an intrinsic part of interactions among nations.

4. The structural part of Dependency • The ques is, ‘ is dependency due to capitalism or unequal global power structures? • That capitalism is central to the rigid international division of labor which is responsible for underdevelopment of many areas in the world. • That unequal power structures work to the adv of capitalists • Weak and developing states (dependent) simply cheap minerals, agric produce and cheap labor and the prices are determined by the eco interests of the dominant • Same to terms and conduct of trade • That there is no comparative advantage in the manner in which trade is conducted. • Division of labor and specialisation is deemed a condition for allocation of resources • That poli power and eco power are heavily centralised and concentrated in the industrialised countries • Same assumtion is adhered to the Marxist theories of imperialism

5. The thin line btwn eco and power means that states will adopt whatever measures necessary to protect their eco interst e.g. through multinational corporations • Not confuse marxism and dependency theory • Marxists talk about the reasons why imperialism occurs, while dependency theory explain the consequences of imperialism • In their definition of underdevelopment, dependency theorists say it is a wholly condition which offers no possibility of sustained and autonomous economic activity in a dependent state • For imperialism-at times- war is to be waged in order to get eco spheres of influence • But dependency, the relationship is self-perpetuating and no war is waged • That acts of colonialism as responsible for poverty in Africa. • Walter Rodney’s model of the centre-periphery Relationship-that the development of the centre- is the underdevelopment of the periphery • So called centre-periphery relationship

6. Dependency theories • Rau Prebisch-Director of the UN Eco Commission for Latin America pivotal/protagonist in the development of the theory in the 1950 • Main thesis/concern was that eco growth in the developed or industrialised countries of the N, did not necessarily contribute to growth in the poorer countries- They focus on the causes of persistence in poverty • Building from the Marxist paradigm-argued that persistence poverty is a consequence of capitalist exploitation • Acc to Prebisch-poor countries exported primary commodities to the rich countries who in turn manufactured products out of these commodities and sold them back to the poor countries • That the “value added” by the manufacturer is always higher than that of the producer. • 3rd world forced to buy at a price dictated by the buyer • The poor countries shld look for import substitution to avoid exorbitant prices by the rich/dvd work • That the world capitalist system favored the rich and while impovarishinng the poor

7. Further Debates • Paul Prebish- structural inequalities in trade and other economic issues--- That international economic order is based in favour of the industrialized states. • WTO- conduct of trade matters-unfair-Africa for eg forced to sell their products at the price dictated by the buyer. • Robert Guilpin- that international trade is hinged on the zero-sum game/process-eg the rise of profits in one state should equal the decrease of profits in another state. • Such is said to increase the dependency syndrome. • MNCs and other non-state actors- instruments for neo form of colonialism ---they operate in the 3rd world but profits or proceeds are repatriated back to Europe.

8. Tries to account for the economic gap between the N (Rich) and S (Poor). • Attributes poverty and underdevelopment in 3rd World states to external conditions-poverty not a natural phenomenon. • That dependence is a virus that inhibits state autonomy over eco and resources. • Structural inequalities-exploitation by the developed and inequalities existing in the conduct of economic issues. • Walter Rodney, How Europe Under Develop Africa- Centre –periphery relationship (exp)

9. Acc to the theory, the underdeveloped S must break away from yoke of bondage and become politically and economically independent. • That the S should chant their own destiny-emancipation from mental slavery/ decolonization of their mind. • The theory as well assumes that expansion of capitalism is responsible for the global inequalities-exploitation of workers esp by MNCs • Acc to Andre Gunda Frank-Third World are underdeveloped because of colonialism-passing resources to the imperialist/ colonial states.

10. Also that integration into the global capitalist system perpetuates underdevelopment and inequalities. • Relationships/cooperation between North and South as horse and Rider type- No mutual benefits • That the crime of international economic order is not that many peoples live in conditions of great poverty esp in developing nations, but that a large eco gap exists btn N and S • That the gap is harmful because it decreases the freedom of action of poor states, making them vulnerable to dvpd industrial states.