DEPENDENCY THEORY
Prebisch, R. (1970) Change and Development:
Latin America's Great Task, Washington, DC: The Inter-American Development
Bank.
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There is a direct link between the increase of marginality and the incapacity
of urban activities to absorb the population increment in productive employment.
2
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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.
14
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In reality, socialism has been a method of development rather than a method
of transforming an advanced economy. 15
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Any system which fails to imbue the economy with the required degree of
dynamism, and to promote more equitable income distribution, will have
irrevocably forfeited the right to survive. 16
Sunkel, O. "National Development Policy and External Dependence
in Latin America,"
The Journal of Development Studies.
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In an adequate historical perspective, development appears as a process
of transformation of economic, social, political, and cultural structures
and institutions. National development policy, to be effective, must therefore
stimulate and promote the institutional and structural changes essential
for the achievement of desired social goals. 23
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The formulation of a strategy of national development requires, therefore,
a precise diagnosis of the mechanisms of dependence in all its forms: economic,
political, military, and cultural. 28
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the traditional agrarian structure has largely been preserved, seriously
limiting modernization and technological improvement of rural production.
Agriculture has been unable to respond efficiently to the demand for farm
produce which has been strongly stimulated both by the growth of population
and of urban incomes and by the development of industry itself, which,
at least in its initial stages, is based largely on primary agricultural
materials. Among other serious consequences this situation has contributed
to the worsening of the balance of payments deficit, either because exports
have been reduced or because agricultural imports have increased considerably.
28
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one of the essential tasks of agrarian policy must be to speed up the growth
of rural production available for the cities, at constant or decreasing
relative
prices
for the urban consumer. As this must be compatible with an income rise
for the peasants - the rural and urban poor being the political base of
this strategy of development - it will be necessary to emphasize: (a) a
substantial increase in yields per hectare; (b) the maximum efficiency
and reduction of costs in the process of marketing; ( c) a lowering of
the costs of agricultural inputs; and (d) a redistribution of income within
the rural sector itself. 36
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From a strategy based unilaterally on import substitution, we must move
in a decisive way to another which rests on three principle supports: (a)
the expansion and diversification of exports, (b) internal structural changes
in the agricultural sector and in manufacturing activity, and ( c) basic
changes in the nature of foreign financial ties. 37
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to the extent that technological progress is the fundamental determining
factor of dynamic comparative advantage, it is absolutely essential to
stimulate it, not just to make our own natural resources more valuable,
but also to assure their optimum utilization. 39
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to what extent will the limitations imposed by the web of international
relations within which our countries exist, permit us to adopt policies
and strategies of national development such as those suggested? 43
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It has become evident...that the revolutionary dangers and tensions in
Latin America have their fundamental origin in the economic and social
structure of these countries. 45
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the fulfillment of the objective of reducing external dependence requires
very important re-orientations in traditional development strategy, particularly
relating to agrarian policy, integration, foreign relations, and industrial
policy. 46
Frank, A. (1969) Latin America: Underdevelopment or Revolution--Essays
on the Development of Underdevelopment and the Immediate Enemy, New
York: Monthly Review Press.
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We cannot hope to formulate adequate development theory and policy for
the majority of the world's population who suffer from underdevelopment
without first learning how their past economic and social history gave
rise to their present underdevelopment. 3
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historical research demonstrates that contemporary underdevelopment is
in large part the historical product of past and continuing economic and
other relations between the satellite underdeveloped and the now developed
metropolitan countries. 4
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the economic, political, social and cultural institutions and relations
we now observe there are the product of the historical development of the
capitalist system no less than are the seemingly more modern or capitalist
features of the metropoles of these underdeveloped countries. 5
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a whole chain of constellations of metropoles and satellites relates all
parts of the whole system from its metropolitan center in Europe or the
United States to the farthest outpost in the Latin America countryside.
6
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tendencies...which lead to the development of the metropolis and the underdevelopment
of the satellite. 7
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underdevelopment was and still is generated by the very same historical
process which also generated economic development: the development of capitalism
itself. 9
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Though science and truth know no national boundaries, it is probably new
generations of scientists from the underdeveloped countries themselves
who most need to, and best can, devote the necessary attention to these
problems and clarify the process of underdevelopment and development. It
is their people who in the last analysis face the task of changing this
no longer acceptable process and eliminating this miserable reality. 15
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They [people from underdeveloped countries] will not be able to accomplish
these goals by importing sterile stereotypes from the metroplis which do
not correspond to their satellite economic reality and do not respond to
their liberating political needs. 16
Amin, S., Arrighi, G., Frank, A., and Wallerstein, E. (1990)
Transforming
the Revolution: Social Movements and the World System, New York: Monthly
Review Press.
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We believe that we cannot make an intelligent analysis of the various states
taken separately without placing their so called internal-life in the context
of the world division of labor, located in the world economy. Nor can we
make a coherent analysis that segregates "economic", "political" and "social"
variables. 9
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We believe that we cannot begin to appreciate this history or these current
dilemmas without placing these movements within the framework of the historical
evolution of the capitalist world-economy as a whole, of which these movements
themselves have been an integral part. 10
"Conclusion: A Friendly Debate," pp. 233-243
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Lenin's concept of imperialism (a transformation of competition from market
competition among enterprises into military competition, i.e., war, among
core states. 235
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For Amin, nationalism today cannot develop significantly in the absence
of socialist content.238
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it is capitalism's success that will breed it failure; that the more capitalism
expands, recuperates oppositions, and adjusts difficulties, the more its
is led into impasses from which there is no exit. 243
Chilcote, R. (1984) Theories of Development and Underdevelopment,
Boulder, CO: Westview Press.
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"The permanent revolution, in the sense which Marx attached to this concept,
means a revolution which makes no compromise with any single form of class
rule, which does not stop at the democratic stage, which goes over to socialist
measures and to war against reaction from without; that is, a revolution
whose every successive stage is rooted in the proceeding one and which
can only in complete liquidation of class society." p.62 in Leon Trotsky,
"The theory of permanent revolution", --62-65 in Isaac Deutscher, The
age of permanent revolution: A Trotsky Anthology, NY, Dell Publishing.
19
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"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. The
structural changes bring about an awareness of this phenomena, and this
awareness, this desire for autonomy, is one of the integral elements in
a critical understanding of the system." Raul Prebisch, "The Dynamics of
peripheral capitalism", pp21-27 in Louis and Liisa L. North (eds.), Democracy
and Development in Latin America, No 1 Toronto: Studies on the political
economy, society and culture of Latin America and the Caribbean, p.25.
27
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The Prebisch approach clearly moves toward an autonomous capitalist solution.
The state must assume a dominant role, but rather than socialize the means
of production, it must work to coordinate private and public enterprise
in order to overcome the obstacles and contradictions between center and
periphery. 27
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"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 asymmetrical nature of the present system of
international economic relations must first undergo a thorough reform."
531 Sunkel, Osvaldo, "Big Business and Dependencia", Foreign Affairs, 50,
(April), 517-531. 30
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"By dependence we mean a situation by which the economy of certain countries
is conditioned by the development and expansion of another economy to which
the former is subjected. The relation of interdependence between two or
more economies, and between these and world trade, assumes the form of
dependence when some countries (the dominant ones) can expand and be self-sustaining,
while other countries (the dependent ones) can do this only as a reflection
of that expansion, which can have either a positive or negative effect
on their immediate development". P.231 Theotonio Dos Santos, "The structure
of dependence", American economic review, 60, May, 231-231. 60
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Such inequalities produces limits within the dependent countries on the
capacity of the internal market as well as negative consequences for the
people. 61
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"Underdevelopment is not original or traditional....The now developed countries
were never underdeveloped, though they may have been undeveloped".
A.G.F., 17-18 "The Development of Underdevelopment", Monthly Review, 18,
Sept., 17-31. 86
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"Underdevelopment as we know it today, and economic development as well,
are the simultaneous and related products of the development...of a single
integrated economic system: capitalism". A.G.F., p.43, On Capitalist
Underdevelopment, Bombay: Oxford University Press. 87
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The definition of development - "At the level of the individual, it implies
increased skill and capacity, greater freedom, creativity, self-discipline,
responsibility and material well-being". Walter Rodney, p.9, How Europe
underdeveloped Africa, London: Bogle-L'Ouverture Publications; Dar es Salaam:
Tanzania Publishing House. 95
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"Whereas at the center, growth is development - that is, it has
an integrating effect - in the periphery growth is not development,
for its effect is to disarticulate. Strictly speaking, growth in the periphery,
based on integration on the world market, is development of underdevelopment."
Samir Amin, 1:18-19, Accumulation on a world scale: A critique of the
theory of underdevelopment, 2 vols. New York: Monthly Review Press.
Chew, S., and Denemark, R. (1996) The Underdevelopment of
Development: Essays in Honor of Andre Gunder Frank, Thousand Oaks,
CA: Sage.
"On Development: For Gunder Frank", 61-86, Samir Amin
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[Conclusions of dependency school] a) that polarization (seen from the
periphery, it manifests itself as dependency) is a fact (no one denies
this); b) that polarization is inherent in capitalism (this viewpoint is
not that of the bourgeois ideologists), although the analysis of the mechanism
of polarization opens the field to fertile debates; c) that the polarization
inherent in capitalism gained momentum during the mercantilist epoch, deployed
itself with the industrial revolution, took it present form with imperialism
in the sense of Lenin, and perhaps has embarked on a new stage of intensification
(my argument); d) that consequently the peoples of the periphery can only
liberate themselves from the disastrous effects by breaking with the world
capitalist system (by delinking) and in doing so with the social logic
of capitalism tout court by building socialism; and e) that delinking
and building socialism constitute projects that develop in revolutionary
states. 63
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For those of us who see development as a shorthand term for progressive
social design, the democratization of society is, by definition, an integral
part of the development process. Without it, the liberation and empowerment
of the people are only empty words. 80
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at the level of the world system, the struggle should aim at the reconstruction
based on the negotiated creation of major regional blocs strong enough
to meet current challenges. 84
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The task ahead is first and foremost the reconstruction of the social power
of the popular classes that has been eroded by the ongoing crisis. (Last
sentence in essay) 85
"World Systems: Similarities and Differences," pp. 246-258, Christopher
Chase-Dunn
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Modern hegemons do not conquer adjacent core states to extract taxes and
tribute. Rather, they sought to control international trade, especially
oceanic trade, that linked cores with peripheries. This is why the modern
world system is resistant to empire formation. The most powerful state
in the system acts to block empire-formation and to preserve the interstate
system.
"The Art of Hegemony," Albert Bergesen, pp. 259-278
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the evolution of sequential stages within a social formation is interrupted
in some parts of the world (the South) when other sectors reach certain
levels of development (the predatory North). The development of one part
of the world now inhibits the development of other areas. 261
"Frank justice rather than frankenstein injustice: Homogenous
development as deviance in the diverse world," Pat Lauderdale, pp. 314-343
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[A.G.F.] I reject as contrary to fact the more commonly held supposition
that underdevelopment is somehow original or traditional, or that developed
countries were once underdeveloped as the underdeveloped ones are now;
and I try to suggest how internationally, nationally, and regionally that
underdevelopment development no less than "development," each in a close
causative relation with the other, as a result of capitalism development
itself. (Quoted on page 318)
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Dependency works against community determination and autonomy. 326
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[the sources of injustice] a) the continued exposure of exploitation in
labor relations, b) the exclusion of participants in decision-making and
policy agendas, c) the erosion of community solidarity and identity and
the right to sovereignty, and d) the long-term cost to nature when it is
defined in indigenous terms - that is, both humans and the environment
as nature, rather the modern notion of nature as separate and subservient
to humans.
"Underdevelopment and Its Remedies," Immanuel Wallerstein, pp.
355-361
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Because we are still living in this system and because any transition is
still a matter of fifty years or more, we need a strategy for change that
can rally support, combined with clarifying alternatives. We thus need
a strategy with three time components: immediate, middle run, and long-run.
The immediate involves the struggles that go on now at the local
level (and, of course, local involves state level) that impinge on how
lives are led immediately. It is not that any changes achieved at this
level are wide-ranging. It is rather that people want and need the immediate
ameliorations now at that the struggle to achieve them is not only mobilizing
but also disconcerting for the forces of the status quo. 359
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two lessons we can draw from the long history of such immediate struggles.
First, they are useful insofar as they improve lives immediately, but they
can never be allowed to become ends in themselves because, as soon as they
do, they become instruments of our co-optation. Second, because al such
struggles are local and therefore reflect the hurts of some particular
group, it is important to remember that there are many hurts of many groups
and that, therefore, alliances are essential if these struggles are not
to become modes of division.
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[long-run] we have to engage seriously in the project of inventing the
future system - not by a philosopher-king, but collectively.
Bernstein, H. (ed.) (1978) Underdevelopment and Development:
The Third World Today, New York: Penguin.
"The Crisis of Development Theory and the Problem of Dependence
in Latin America," T. Dos Santos, pp. 57-80
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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. 64
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D.S. Dependence is not the 'external factor' which it is often believed
to be. "The international situation in which this movement occurs is taken
as a general condition but not as a demiurge of the national process because
it is the elements within a nation which determine the effect of international
situations upon the national reality." 72
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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. 76
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The concept of dependence itself cannot be understood without reference
to the articulation of dominant interests in the hegemonic centers and
in the dependent societies. 78
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For if dependence defines the internal situation and is structurally linked
to it, a country cannot break out of it simply by isolating herself from
external influences; such action would simply provoke chaos in a society
which is of itself dependent. The only solution therefore would be to change
its internal structure - a course which necessarily leads to confrontation
with the existing international structure. 79
"Planning Economic Development," O. Lange, pp. 207-215
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The strategic factor is investment, or more precisely productive investment.
Consequently the problem of development planing is one of assuring that
there be sufficient productive investment, and then of directing that productive
investment into such channels as will provide for the most rapid growth
of the productive power of national economy.