Question 1(a) · 10 marks · 154 words written
Opening · a definition
Dependency theory was first formulated by Latin American theorists to explains patterns of underdevelopment and exploitation in the third world.
A. G. Frank in 'Development of Underdevelopment' has argued that -
Body · points and prose
(i) Underdevelopment of the third world is not due to internal characteristics, but external exploitation. (ii) Underdevelopment in Latin America, Asia, Africa comes from economic exploitation by first world countries. (iii)
Metropolitan - periphery model
similarly Wallerstein proposed the following World Systems Model →
Critical Scrutiny → Does not explain benefits of integration of capitalist production → East Asian Tigers.
→ [Amartya Sen] argues that aid and transfers have led to better health and education outcomes.
→ Imprecise solutions like protectionism, which do not reduce poverty. eg. North Korea.
→ With decline of communism, and "end of history", absence of alternative development paradigm (Fukuyama).
Close · a summary
However, the theory has enduring significance in explaining neo colonialism, data colonialism and uneven opening of economies through WTO.