Dependency Theory Perspective to Explain Underdevelopment

Dependency Theory Perspective To Explain Underdevelopment

AP/SOCIAL SCIENCE 1430/1439 First Essay

Course Director: Miguel Gonzalez

Tutorial Teaching Assistant: Hilary Gold

Guilin Wang

Student number: 214777361

Date Available: Sept.29.2016

Due Date: Oct.20.2016

Word count: 1300

The definition of development was established in the Western countries in the 1950s. Therefore, it explains a specific model of development, from a Western perspective. Development explains the process of achieving high standards of living, which includes good quality education, good health care system, long life expectancy, a capitalist free market and democratic political systems. However, development creates underdevelopment in Third World countries. The growth of capitalist countries mean the simultaneous underdevelopment of those Third World countries whose exploited by the Western countries. There are two major theories that explain development and underdevelopment: modernization theory and dependency theory. Modernization theory explains how to develop, using a Western model that emphasizes a capitalist economic system, follow the steps of Western development and change traditional values. Dependency theory is a critique of modernization theory. Dependency theory explains the economy of a country controlled by another country, the unequal relations of exchange from a periphery of poor states to a core of rich and the lack of development and poverty in Third World countries. Dependency theory and modernization theory just like two sides of the same coin which means there are inter-connected. I argue that dependency theory gets a better explanation of underdevelopment. This will be demonstrated by the importance of history, the role of capitalism in exploiting the Third World countries and follow the steps of progress of Western development.

The dependency theory gets a better explanation of underdevelopment depend on the importance of history. Modernization theorists think that development can happen at any time. Harrison thought that creative capacity of the human is the key idea to start the development. Development is starting when the hypothesis, analysis, application, invention of man-kind occur. (Harrison, 228）This idea shows that it is completely ahistorical. The knowledge and technology are needed to overcome the underdevelopment and poverty. Also a good education can leads to creative capacity which leads to development indirectly. Humans can control development and it is not affected by history. Thus, history is not explanation of underdevelopment. For dependency theory, history is important. Colonialism is an example of history that a major contributor to underdevelopment. Galerno described the dark history of Indians. The Spaniards were plundered the Indians or just the labor in their views and sent them to Potosi. There were a lot of them died on the way before reaching Potosi. This was the blatant exploitation of labor and siphoned off  to the Global North. Rapacious mine owners made Indians work by force and treat them as stray animals. They thought the poor Indians just like the sardines in the sea which were cheap, easy to catch and large numbers. Those mine owners caught these free labors and earn lots of money. This was the blatant exploitation of natural resource. The Spaniards caught the Indians and forced them to dig the mineral in their own land. And the capitals transferred for their own money. (Galeano, 39) This will cause dependence for a long time and destroy the development of the colony because there is no more labor and natural resources. This is due to the Global South taking raw materials and labor from the Global South. The Global South has left with impoverished economies and devastated population; however the Global South gained benefits. So the propositions for dependency theory that underdevelopment is a historical product. Not only the importance of history causes the underdevelopment, but also the role of capitalism in exploiting the Third World countries leads to underdevelopment.

The dependency theory gets a better explanation of underdevelopment because the role of capitalism in exploiting the Third World countries. Capitalism is the main economic agent in the modernization theory. (Lecture notes, Sept 29) To further advance the development, it needs the action of governments in producing on environment Governments in capitalist countries build the basic social establishment like the roads, parks, signal towers and hospitals. Government also spend, tax, regulate to support the capitalist system. (Isbister, 34) For modernization theory, capitalism is a best way to makes high standards of living, good education and long life and overcome underdevelopment. But capitalism based on the exploitation of labor and market interaction which is unequal relations of exchange for the Third World countries. Workers in the Third World countries were produced rubber, cotton, cocoa, jute, sugar, tobacco, and many other products for use as either raw materials or consumer goods for the West. The development of the capitalist system depended on low labor costs in the third world, so that imports into the West could remain cheap and good quality high. (Isbister, 44) This quote proves that unequal relations of trade unfavorable to the Third World countries. Cheap commodities, expensive manufactures goods will destroy the economy in the Third World countries and this gap will increase in the long term. (Lecture notes, Oct 6) The capitalist countries try to “underdevelop” third world countries and make Third World countries dependent or they will lose the resources and labor which used to develop themselves from the Third World countries. Although there is some money for the subsidy from capitalism countries, Third World countries give up more than they get. Not only the role of capitalism in exploiting the Third World countries can touch off the underdevelopment, but also follow the steps of progress of Western development lead to the underdevelopment.