The origins and aims of Dependency Theory

The origins and aims of dependance TheoryDependency possibility was established in 1950s by Raul Prebisch. Prebisch and his friends developed it in an set out to understand why some countries in the domain remained developing. There was a concern that the gameyer nations were prospering while pauperization heightened in the underdeveloped nations (Kendall, 2010). During that time, research showed that the frugal practices in the flush(p) nations were subservient in the measly countries deterioration. These results contrasted with the neoclassic conjecture that had stated that economic proceeds benefited all the countries. harmonise to Prebisch, the exports do by the shortsighted countries directly benefited the voluminous countries since they spend them as the raw materials for their industries.Surprisingly, these rich countries export the end products to the sad countries. Consequently, the rich countries earn foreign exchange at the expense of the short(p) countri es (Kegley, 2009). Some of them include the small internal markets in the underdeveloped countries, misfortune of the poor countries to make a change, and restriction of the poor countries to export their products. It is for this sympathy that the scholars developed the possible action of colony.Consequently, scholars developed the dependency surmisal in an attempt to justify the intensity of meagreness in the underdeveloped countries (Pfeffer, 2003). Earlier on, the neoclassical surmise condemned the poor countries, attributing their economic status to their delay in discourse making important economic decisions. However, the dependency possible action opposed their views with claims that p all overty in these countries resulted from exploitations by the capitalists (Ghosh, 2000).The dependency theorists argued believe that the internationalisticistic imperialists ar submissive in the perpetuation of dependency in the poor countries. One of these theorists is Andre Gu nder forthright who asserts that further underdevelopment of the poor countries is ca employ by the capitalists economic practices (Daft, 2010). Dependency theory is ground on the Marxist theories that explain the reasons for the international inequality. They assert that economic elites use idealism and realism ideologies in order to justify disparities among the wealthy and poor countries worldwide (Brewer, 2010). Therefore, dependency theory bases its arguments on the Marxist theories. Dependency theory argues that the developed countries use the concept of class to establish trustworthy strategies that keep and support their needs.There ar certain principles of the dependency theory that be establish on the Marxist theory. First, it states that the world is segmented into certain classes based on economy rather than politics. It asserts that the economy is superior to politics. Therefore, the theory holds that the imperialists created spherical state system so as to addre ss the interests of the rich countries and organizations (Johnson, 2009). This explains the current poverty in the poor countries, and prosperity in the wealthy nations. The rich and the poor countries form vital split of the world system. That is the rich countries are that the central rich nations that posses and prosper from the natural resources (John, 2007). On the former(a) hand, the poor countries give the majority of the human and natural resources that the rich nations exploit. Therefore, the rich nations stupefy advantage of the poor countries resources in furthering their economic activities. As a result, the economic cleft amid these countries widens. Additionally, the theory argues the spheric economic laws perpetuate the international inequality. For instance, one of these influential laws is the World Trade Organization (Ritzer, 2003).The dependency theory and the other Marxist theories try to explore ways of addressing the issue of international economic diffe rence. One of these ways is involves the efforts to bring change among themselves. They should make workable economic decisions and policies that are capable of changing their status in a way. This means that their strategies should aim at freeing them from the economic bondage by the strong international forces. They should also champion for the reduction of the wealthy countries domination on their economic activities. For example, they should seek ways of breaking the import barriers in the case of the import substitution. Although brusk is not the initiator of the underdevelopment theory, he made it very popular (Bardach, 1998). He borrowed a lot of Paul Barans work. He believes that capitalism is caused by underdevelopment in the developing countries in the world.There are certain reasons that led to the rum development in these countries. Furthermore, weenie maintain that the increase in the imperialism in Europe is influential in transforming the world into one global sy stem. He further explains the extent to which these capitalists had gained access to the Latin America. Subsequently, this has a negative impact on the countrys economy. This, in turn, results in uneven development across the nations. For instance, in that location are some places that we realize plus development while others record underdevelopment. This happens because the world system consists of the metro-polis satellite dealings. These relations are used by the satellite but not connected to the satellite. Using the examples of Chile and Brazil, Frank explains that Chile had an experience of monopoly of imperialists structure (Martin, 2002). As a result, these metropolis relations facilitate a stronger bond surrounded by the capitalists and the metropolises to their respective centers. It also extends the capitalists rule to the businessmen, stockholders and the tenants. In Brazil, Frank had the same ideas on the effect of capitalism in the country. He explains the transmi ssion of these capitalistic effectuate from the merchants to the tenants.Additionally, Frank elaborates on the involvement of the monopolistic system in the countries. According to him, this system involves the poor usage and wastage of a countrys resources in the system (Chilcote, 2003). The unequalized expropriation and appropriations lead to the development and the underdevelopment of the countries hence the difference in the economic status.Imperatively, Frank elaborated on the operations of the satellites and their effects on the world system. First, he explains that the political, social, and cultural aspects are linked to the metropolis. Secondly, establishes that a metropolis is having dependent progress. Thirdly, in that location are weak bonds between the satellites and the metropolis. The fourth idea is that strengthening of these links might result in further underdevelopment of the metropolises.Nevertheless, Frank opposed the concept that underdeveloped world had m ore than one economies the current and the ancient economies. He explains that capitalism had deepened its roots in Latin America. Though these countries seemed to be doing ell economically, there was a decrease in the performance of the export industries. For example, there was a decline in the productivity of the sugar company in Brazilian North-East (Petrella, 2003). This collapse was as a result of weak ties between the metropolises. Therefore, anything that looked like feudal characteristics results from underdeveloped imperialism.There are certain criticisms of the dependency theory by certain scholars. Just like any other theory, dependency theory has its share of strengths and weaknesses. To start with, dependency theory has the sideline strengths. Firstly, the theory analyses the inequality existing between the poor and the rich countries. Moreover, the theory breaks some political bonds and explains reasons why the wealthy nations are taking advantage of the poor countrie s (Doukhan, 2003). Also, dependency theory dismisses the neoclassical theorys claim that the existing global inequality is caused by the poor countries laziness. In stead, it argues in favor of these underdeveloped countries and blames the imperialists.On the contrary, certain scholars argue that the theory has some limitations. One of the weaknesses concerns the theorist, over-generalization and over simplification. Explicitly, frank should have investigated other parts of the world other than Latin American situation. In such a situation, it is essential several(predicate) parts of the world, for example, the African countries and Asia (Martin, 2002). Therefore, his ideas are not realistic in that he used a few examples in his arguments.Another weakness of the dependency theory is that does not explain other factors that lead to underdevelopment other than the role vie by the wealthy nations. The terms core and periphery are different from the terms traditional and modern.Additi onally, dependency theory is weak in that in Frank failed in his attempt to provide solutions to the situation. His suggestions were very false and over-ambitious. Moreover, these solutions created certain dependencies among themselves. For example, it was impossible for Cuba to disentangle itself from the economic dominion with the USA (Willer, 1999).Furthermore, Frank essay to prove that the imperialism is the major cause of the economic difference. Instead, he bases arguments on unrealistic perceptions. In addition the theory is weak in that Frank failed to librate all class relations in his ideas. He also misinterpreted the Marxists concepts. Frank only addresses market relations.Some critics also challenge the theory by maintaining that it will cause corruption with the higher markets and the other markets. Corruption is quite an intense in the government industries than in than in others. It also causes miss of competition in the industries of both wealthy and poor countr ies. The completion is as a result of the restriction of imports to the poor countries, and subsidization of inducements (Ghosh, 2000).Finally, dependence theory encompasses certain scholars such as Karl Marx, Friedrich Engels, Vladimir Lenin, Fernand Braudel, Giovanni Arrigi, Samir Amin, Hans Singer, Frank Gunder and Raul Prebisch.In conclusion, dependency theory is influential in explaining the international inequality in terms of economy. addiction theory asserts that the disparity is a resultant of the imperialism by the powerful and wealthy nations in the world. Therefore, they take advantage of the poor countries, hence widening the gap between them. However, there are a lot of criticisms on the theory that display more weaknesses than the strengths. Therefore, this theory may not be able in the explaining global inequality.