PCD AND THE DEPENDENCY WORLD SYSTEM

A.        Description of the “Dependency” Condition:

·   “By dependence I mean relations between centers and the periphery whereby a country is subjected to decisions taken in the centers, not only in economic matters, but also in matters of politics and strategy for domestic and foreign policies. The consequence is that due to exterior pressure the country cannot decide autonomously what it should do or cease doing” (Prebisch, 1970).

·   “Dependence is a conditioning situation in which the economies of one group of countries are conditioned by the development and expansion of others. A relationship of interdependence between two or more economies or between such economies and the world trading system becomes a dependent relationship when some countries can expand through self-impulsion while others, being in a dependent position, can only expand as a reflection of the expansion of the dominant countries, which may have positive or negative effects on their immediate development” (Dos Santos, 1978).

·   “Dependency works against community determination and autonomy” (Lauderdale, 1996).

QUESTION:

Why is the implementation of PCD relevant in this dependency world condition?

B.        How to Address the Dependency Condition? Reform Internally or Externally?:

1.   Redefine External (International) Relationships:

·   “What we are seeing is the assertion of the national interest of our countries in their international economic relations. The aim is greater autonomy, in order to achieve development without “dependencia” and without marginalization. To achieve this goal, the … nature of the present system of international economic relations must first undergo a thorough reform” (Sunkel, 1984).

QUESTION:

What does it say about the empowerment of a country if “social change is conditioned by changes in the world system as a whole?”

2.   Restructure Internally:

·   “A change from development towards the ‘outside’ to development towards the ‘interior’ would relieve underdeveloped countries of their dependence of foreign trade and give to a locally controlled economy. These changes were described as a ‘transfer of centers of decision-making towards the interior’ of underdeveloped economies, and as replacing a development ‘induced’ by uncontrollable foreign trade situations by national development as conceived by those in power within the country” (Dos Santos, 1978).

·   “It is the changes within a nation which determine the effect of international situations upon the national reality” (Dos Santos, 1987).

·   “In the long-run, we have to engage seriously in the project of inventing the future system--not by a philosopher-king, but collectively” (Wallerstein, 1996).

QUESTION:

Does PCD encourage changes within a country that address the dependency condition?

C.        The Role of Technology:

·   “They (people from underdeveloped countries) will not be able to accomplish these goals by importing sterile stereotypes from the metropolis which do not correspond to their satellite economic reality and do not respond to their liberating political needs” (Frank, 1969).

·   Considerable capital formation effort is required in order to give the economy the additional dynamism it needs. It is not conceivable--much less desirable--that this should be done mainly with foreign capital. A great internal effort will be an imperative and inescapable necessity” (Prebisch, 1970).

QUESTION:

Do PCD projects tend to rely on developed nations for capital? How may then this address the dependency system?