File Name: dependency and development in latin america .zip
This article examines dependency theory, focusing especially on Latin America.
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Prebisch and his colleagues were troubled by the fact that economic growth in the advanced industrialized countries did not necessarily lead to growth in the poorer countries. Indeed, their studies suggested that economic activity in the richer countries often led to serious economic problems in the poorer countries. Such a possibility was not predicted by neoclassical theory, which had assumed that economic growth was beneficial to all Pareto optimal even if the benefits were not always equally shared. Prebisch's initial explanation for the phenomenon was very straightforward: poor countries exported primary commodities to the rich countries who then manufactured products out of those commodities and sold them back to the poorer countries. The "Value Added" by manufacturing a usable product always cost more than the primary products used to create those products. Therefore, poorer countries would never be earning enough from their export earnings to pay for their imports.
Commodity-Led Development in Lati Based on that pattern, the author argues that the recent price collapse may be the beginning of a long period of weak commodity prices. Finally, the chapter demonstrates that the region has been unable to take full advantage of the benefits of its natural resource specialisation and has faced, in contrast, some negative Dutch Disease effects due to the aforementioned dependence. Latin America has, furthermore, been a victim of the macroeconomic vulnerabilities generated by commodity cycles, largely because it has failed to develop appropriate countercyclical macroeconomic policies. Until the s they were the main engine of modern economic growth, and continued to make up an overwhelming proportion of the export basket until the s. The export diversification that has taken place since then, and that sped up with market reforms in the late twentieth century, did not fully replace this feature, except in a few countries. This relates to the capacity of commodity-led development to generate dynamic growth and, in that regard, whether such development benefits or harms the development of manufacturing and modern services.
Rather than looking towards country-level characteristics to explain development, as per earlier theorizations, dependency theory asks that social scientists reorient their analyses to attend to the global economic forces that dictate development disparities both between and within nation-states. This essay traces the intellectual lineage of dependency theory as articulated in Latin America, several competing strands of thought from scholars working in this tradition, and some consequences of dependency theory for policy praxis and social science research. Dependency theory as an intellectual movement emerged as a response to modernization theory, a quasi-evolutionary model of economic development that posited that nations move linearly through successive stages of growth Gunder Frank ; Rostow Prebisch and Singer used trade data between wealthier, northern countries and Latin America to analyze the aggregate terms of trade of these interactions, ultimately concluding that an imbalance inherent to this exchange resulted in a constant flow of capital out of Latin America Prebisch While Latin American countries exported primary goods like food products, lumber and minerals to the Global North, they tended to re-import manufactured products from these same countries. The value added to these manufactured commodities — typically constructed from the primary inputs imported earlier — generated profit for northern countries while maintaining Latin American countries in a perpetual trade deficit. This wealthy global core exists in a semi-permanent extractive relationship with a low-income periphery.
Dependency Theory in International Relations 2. Dependency and Development - the Case of Bolivia 3. The Economic Policies of the s and s 3. The success of social movements 3.
Access options available:. Nepantla: Views from South 1. The dependentista school critique of stagism and developmentalism was an important intervention that transformed the imaginary of intellectual debates in many parts of the world. However, I will argue that many dependentistas were still caught in the developmentalism, and in some cases even the stagism, that they were trying to overcome. There is a tendency to present the post development debates in Latin America as unprecedented.
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This article focuses on dependency theory and its influence on scholarly work in the field of international development. After tracing the roots of dependency theory, the article considers its relationship to the international economy, multinational capital, the local bourgeoisie, and the state. It then discusses dependency theory as a set of general concepts and orientations for formulating theories and explanations, as well as a set of directly testable and falsifiable hypotheses. It also emphasizes the utility of dependency theory for explaining the historical trajectories of development in Latin America, sustained robust economic growth in South Korea and Taiwan, globalization, and recent strong growth in China and some of its raw material suppliers. The article shows that dependency theory has mixed results as a testable theory but has been quite successful when used as a theoretical framework. Keywords: dependency theory , development , economy , bourgeoisie , Latin America , economic growth , South Korea , Taiwan , globalization , China. Access to the complete content on Oxford Handbooks Online requires a subscription or purchase.
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Dependency and Development in Latin America. Fernando Henrique Cardoso. The theory of imperialist capitalism, as is well known, has so far attained its most.Reply
The theory of imperialist capitalism, as is well known, has so far attained its most significant treatment in Lenin's works. This is not only because Lenin attempts to.Reply