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Dependency Theory and The Latin American Experience

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Dependency Theory was initially developed by Hans Singer and Raul Prebisch in the 1950s and has been improved since then.

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Dependency Theory and The Latin American Experience

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Dependency Theory was initially developed by Hans Singer and Raul Prebisch in the 1950s and has been improved since then.

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Dependency Theory and the Latin American Experience

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Dependency Theory was initially developed by Hans Singer and Raul Prebisch in the 1950s and has been improved since then.

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6K views17 pages

Dependency Theory and The Latin American Experience

Uploaded by

Gel an Pet Madalogdog
Dependency Theory was initially developed by Hans Singer and Raul Prebisch in the 1950s and has been improved since then.

Copyright:

© All Rights Reserved
Download as PPTX, PDF, TXT or read online from Scribd
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Dependency Theory was initially developed

by Hans Singer and Raul Prebisch in the 1950s


and has been improved since then.
Dependency is the condition in which
the development of the nation-state of the
South contributed to decline in their
independence and to an increase in economic
development of the countries of the North.
(Cardoso and Felato, 1979).
In addition, it argues that liberal
trade causes greater impoverishment, not
economic improvement, to less developed
countries (Troye, 2003).
In the 1500s, European explorers
spread throughout the Americas, Africa and
Asia claiming the lands of Europe. At one
point, British Empire covered the about ¼ of
the world.
The United States which began as
colonies soon sprawled out through the North
America and took control of Haiti, Puerto
Rico, Philippines, the Hawaiian Islands and
parts of Panama and Cuba.
Guns and factory-made goods
were sent to Africa in exchange for
slaves, who were sent to the colonies
to produce goods like cotton and
tobacco, which were then sent back
to Europe.
After the Second World War,
there were many questions about
international relations. One of those
questions was:
 Because these countries are not
pursuing the right economic policies or
their governments are authoritarian and
corrupt.
Latin American scholars, however, are
critical of that answer and are intrigued by
their region’s underdevelopment. (Sanchez,
2014)
Dependency Theory was a product of this
experience.
 Trade protectionism through import
substitution is the key to self-sustaining
path to development, not liberal trade or
export.
In other words, rather than
focusing on what poor countries are
doing wrong, Dependency theory focuses
on how poor countries have been
wronged by richer nations.
 Inaddition, it argues that in a world
of finite resources, we cannot
understand why rich nations are rich
without realizing that those riches
came at the expense of another
country being poor.

 Inthis view, global stratification starts


with colonialism.
 The two main sub-theories of Dependency
Theory according to (Sanchez, 2014) are:

1. North American Neo-Marxist


Approach

2. Latin American structuralist


Approach
1. NORTH AMERICAN NEO-MARXIST APPROACH

 Andre Gunder Frank (1969) expoused the North


American Neo-Marxist approach. He contended the
idea that less developed countries would develop by
following the path taken by the developed countries.
Developed countries were undeveloped in the
beginning but not underdeveloped.

 This means that the path taken by the developed


countries does not guarantee the same fate for the
underdeveloped countries.
 Frank also rejected the idea that
internal resources cause a country’s
underdevelopment; rather, it is their
dependency to capitalist system that
causes lack of development.
2. LATIN AMERICAN STRUCTURALIST APPOACH

 This
was developed mainly by Latin
American scientist

 Palma (1978) noted that chief among the


arguments accounting for Latin
American underdeveloped was the
“excessive” reliance on exports of
primary commodities.
Core Nations Peripheral Nations

 More  Less developed


industrialized  Receive an unequal
nations who distribution
receive the
majority of the
worlds wealth
“Methodology for the analysis of concrete
situations of Dependency” –(Cardoso &
Faletto)

They believed that Latin American


economies were the result of capitalist
expansion in the United States and
Europe.
“The idea of dependence refers to the
conditions under which alone the
economic and political system can exist
and function in its connections with the
world productive structure”

-Cardoso and Felatto (1979)


“The identification of interest networks-
business, technocrafts, the military, the
middle class that bind the dynamics of
local political and economic processes to
material and political interests in the
industrialized world”

(Sanchez, 2014)

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