Africa, therefore, has little or no resources to invest in itself, in its own economy or human development. It's unlikely that Africa will ever prosper unless that interest is forgiven by the more powerful nations that lent the initial money, erasing the debt. The concept of the dependency theory rose in popularity and acceptance in the mid to late 20th century as global marketing surged. Then, despite Africa's troubles, other countries thrived despite the influence of foreign dependency.
India and Thailand are two examples of nations that should have remained depressed under the concept of the dependency theory, but, in fact, they gained strength. Yet other countries have been depressed for centuries. Many Latin American nations have been dominated by developed nations since the 16th century with no real indication that that is about to change.
A remedy for dependency theory or foreign dependency would likely require global coordination and agreement. Assuming such a prohibition could be achieved, poor, undeveloped nations would have to be banned from engaging in any sort of incoming economic exchanges with more powerful nations. In other words, they could sell their resources to developed nations because this would, in theory, bolster their economies. However, they would not be able to purchase goods from wealthier countries.
As the global economy grows, the issue becomes more pressing. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Adverse selection is a term that describes the presence of unequal information between buyers and sellers, distorting the market and creating conditions that can lead to an economic collapse. It develops Explaining The K-Shaped Economic Recovery from Covid A K-shaped recovery exists post-recession where various segments of the economy recover at their own rates or levels, as opposed to a uniform recovery where each industry takes the same Both on paper and in real life, there is a solid relationship between economics, public choice, and politics.
The economy is one of the major political arenas after all. If this assumption is valid, then any distinction between economic and political power is spurious: governments will take whatever steps are necessary to protect private economic interests, such as those held by multinational corporations. Not all dependency theorists, however, are Marxist and one should clearly distinguish between dependency and a theory of imperialism. The Marxist theory of imperialism explains dominant state expansion while the dependency theory explains underdevelopment.
Stated another way, Marxist theories explain the reasons why imperialism occurs, while dependency theories explain the consequences of imperialism.
The difference is significant. In many respects, imperialism is, for a Marxist, part of the process by which the world is transformed and is therefore a process which accelerates the communist revolution.
Marx spoke approvingly of British colonialism in India:. England has to fulfil a double mission in India: one destructive, the other regenerating--the annihilation of old Asiatic society, and the laying of the material foundations of Western society in Asia. For the dependency theorists, underdevelopment is a wholly negative condition which offers no possibility of sustained and autonomous economic activity in a dependent state. Additionally, the Marxist theory of imperialism is self-liquidating, while the dependent relationship is self-perpetuating.
The end of imperialism in the Leninist framework comes about as the dominant powers go to war over a rapidly shrinking number of exploitable opportunities.
World War I was, for Lenin, the classic proof of this proposition. After the war was over, Britain and France took over the former German colonies. A dependency theorist rejects this proposition. A dependent relationship exists irrespective of the specific identity of the dominant state.
That the dominant states may fight over the disposition of dependent territories is not in and of itself a pertinent bit of information except that periods of fighting among dominant states affords opportunities for the dependent states to break their dependent relationships. To a dependency theorist, the central characteristic of the global economy is the persistence of poverty throughout the entire modern period in virtually the same areas of the world, regardless of what state was in control.
Finally, there are some dependency theorists who do not identify capitalism as the motor force behind a dependent relationship. The relationship is maintained by a system of power first and it does not seem as if power is only supported by capitalism. For example, the relationship between the former dependent states in the socialist bloc the Eastern European states and Cuba, for example closely paralleled the relationships between poor states and the advanced capitalist states.
The possibility that dependency is more closely linked to disparities of power rather than to the particular characteristics of a given economic system is intriguing and consistent with the more traditional analyses of international relations, such as realism.
There are a number of propositions, all of which are contestable, which form the core of dependency theory. These propositions include:. Underdevelopment is a condition fundamentally different from undevelopment. The latter term simply refers to a condition in which resources are not being used. For example, the European colonists viewed the North American continent as an undeveloped area: the land was not actively cultivated on a scale consistent with its potential.
Underdevelopment refers to a situation in which resources are being actively used, but used in a way which benefits dominant states and not the poorer states in which the resources are found. The distinction between underdevelopment and undevelopment places the poorer countries of the world is a profoundly different historical context.
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