Dependency Theory in Literature

Dependency Theory: Term, Definition and Concept

Dependency Theory Term/Etymology:

Dependency theory, as a term, refers to a set of social, economic, and political theories that emerged in the mid-20th century. The term “dependency” highlights the core concept that these theories revolve around, which is the idea that certain nations or regions are economically dependent on more powerful ones.

The origin of the term lies in the acknowledgment of a structural relationship where less developed nations are seen as being economically and politically dependent on the more advanced and economically powerful nations.

Definition and Concept:

• Economic Dependence: Dependency theory posits that less developed countries are structurally and economically dependent on more developed nations, often as a result of historical patterns of exploitation, unequal trade relations, and economic imperialism.
• Underdevelopment as a Systemic Outcome: The theory argues that underdevelopment in certain regions is not a stage in a linear progression towards development but a systemic outcome of the global capitalist system. It challenges the traditional modernization theory that assumed all nations would follow a similar path to development.
• Unequal Power Relations: Dependency theorists emphasize the unequal power relations between developed and developing nations. Economic and political structures are seen as reinforcing the dominance of developed countries and perpetuating the underdevelopment of others.
• Core-Periphery Model: Dependency theory often employs a core-periphery model to illustrate the global division of labor. Developed nations (core) extract resources and exploit labor from less developed nations (periphery), contributing to the perpetuation of economic imbalances.
• Critique of Neocolonialism: The theory critiques neocolonialism, suggesting that even after gaining political independence, many formerly colonized nations remain economically dependent on their former colonizers due to ongoing economic ties and global power dynamics.
• Import Substitution Industrialization (ISI): Dependency theorists propose strategies like ISI, advocating for the development of domestic industries to reduce reliance on imports and break free from the cycle of dependency on foreign powers.
• Global Capitalist System Analysis: Dependency theory encourages an analysis of the global capitalist system’s impact on economic development, emphasizing the need for structural changes and reforms in international economic relations to address the root causes of underdevelopment.

Dependency Theory: Theorists, Works and Arguments

Key Theorists:

1. Raúl Prebisch: As one of the early proponents of dependency theory, Raúl Prebisch, an Argentine economist, played a crucial role. His work focused on the economic imbalances between developed and underdeveloped nations, emphasizing the negative effects of unequal trade relations.
2. Fernando Henrique Cardoso: Before becoming the President of Brazil, Cardoso contributed significantly to dependency theory. In collaboration with Enzo Faletto, he co-authored “Dependency and Development in Latin America,” where they explored the historical and structural aspects of economic dependency.
3. Andre Gunder Frank: A German-American economist, Frank is known for his influential work “Capitalism and Underdevelopment in Latin America” (1967). He argued that underdevelopment in the Global South was a direct result of the economic relations established during the era of colonialism and imperialism.
4. Samir Amin: An Egyptian-French Marxist economist, Amin expanded on dependency theory, emphasizing the global capitalist system’s exploitative nature. His work, including “Accumulation on a World Scale” (1970), provided insights into the unequal power dynamics in the international economic system.

Key Works:

1. “The Economic Development of Latin America and Its Principal Problems” (1950) by Raúl Prebisch: Prebisch’s seminal work laid the groundwork for dependency theory, highlighting the limitations of the export-led growth model and advocating for policies that reduce dependence on primary commodity exports.
2. “Dependency and Development in Latin America” (1969) by Fernando Henrique Cardoso and Enzo Faletto: This collaborative work explores the historical and structural dimensions of dependency, arguing that development in Latin America is hindered by the region’s integration into the global capitalist system.
3. “Capitalism and Underdevelopment in Latin America” (1967) by Andre Gunder Frank: Frank’s work challenges traditional development theories, asserting that underdevelopment is a consequence of capitalist exploitation. He introduced the concept of the “development of underdevelopment.”
4. “Accumulation on a World Scale: A Critique of the Theory of Underdevelopment” (1970) by Samir Amin: Amin’s book expands on dependency theory, providing a Marxist analysis of global capitalism and its impact on underdeveloped nations. He argues for a structural transformation to overcome dependency.

Key Arguments:

1. Unequal Exchange: Dependency theorists argue that international trade, characterized by unequal exchange, perpetuates the economic disparities between developed and underdeveloped nations, benefiting the former at the expense of the latter.
2. Historical Exploitation: Dependency theory emphasizes the historical exploitation of colonized nations, suggesting that the legacies of colonialism and imperialism continue to shape global economic relations, hindering the development of former colonies.
3. Core-Periphery Model: The core-periphery model is a key concept, illustrating the division of the world into economically dominant core nations and exploited periphery nations. This model highlights the flow of resources from the periphery to the core, sustaining the economic imbalance.
4. Import Substitution Industrialization (ISI): Dependency theorists advocate for ISI as a strategy for underdeveloped nations to reduce dependency on foreign goods and foster the development of domestic industries. ISI aims to promote economic self-sufficiency.
5. Critique of Modernization Theory: Dependency theory challenges the assumptions of modernization theory, arguing that the path to development is not universal and that the global capitalist system perpetuates underdevelopment in certain regions.

Dependency Theory: Key Principles

1. Structural Inequality:
   • Dependency theory asserts that the global economic system is inherently structured to favor developed nations (the “core”) at the expense of underdeveloped nations (the “periphery”). This structural inequality is embedded in historical patterns of exploitation and economic relationships.
2. Unequal Exchange:
   • The theory highlights the concept of unequal exchange in international trade, arguing that underdeveloped nations often receive lower prices for their exports while paying higher prices for imported goods. This perpetuates a cycle of economic dependency and hinders the development of the periphery.
3. Historical Legacy of Colonialism:
   • Dependency theorists emphasize the lasting impact of colonialism on underdeveloped nations. The historical exploitation of resources and labor during the colonial era continues to shape economic relationships, hindering the independent development of former colonies.
4. Core-Periphery Model:
   • The core-periphery model illustrates the global division of labor, with developed nations forming the economic core and underdeveloped nations constituting the periphery. The core extracts resources and exploits labor from the periphery, contributing to the perpetuation of economic imbalances.
5. Underdevelopment as a Systemic Outcome:
   • Dependency theory challenges the idea that underdevelopment is a temporary stage in a linear path toward development. Instead, it sees underdevelopment as a systemic outcome of the global capitalist system, where certain nations are structurally disadvantaged.
6. Import Substitution Industrialization (ISI):
   • As a strategy for breaking the cycle of dependency, dependency theory advocates for Import Substitution Industrialization (ISI). ISI involves developing domestic industries to produce goods that were previously imported, aiming to reduce dependence on foreign products.
7. Critique of Neocolonialism:
   • Dependency theory critiques neocolonialism, arguing that even after gaining political independence, many formerly colonized nations remain economically dependent on their former colonizers due to ongoing economic ties and global power dynamics.
8. Economic Dualism:
   • The theory emphasizes economic dualism within underdeveloped nations, pointing out the coexistence of modern, export-oriented sectors alongside traditional, subsistence-based sectors. This dualism is seen as a consequence of the global capitalist system’s impact on domestic economies.
9. Global Capitalist System Analysis:
   • Dependency theory encourages an analysis of the global capitalist system’s impact on economic development. It emphasizes the need for structural changes and reforms in international economic relations to address the root causes of underdevelopment.
10. Resistance and Transformation:
    • Dependency theory suggests that breaking free from dependency requires resistance against exploitative economic structures and the implementation of transformative policies. This may involve challenging established international economic norms and pursuing alternative paths to development.

Dependency Theory: Application in Critiques

1. Things Fall Apart by Chinua Achebe:
   • Economic Exploitation: Dependency theory can be applied to critique how the novel explores the economic consequences of colonialism on the Igbo society. The core-periphery dynamics are evident as external forces exploit the local resources, leading to cultural disintegration and economic dependency.
2. The House of the Spirits by Isabel Allende:
   • Neocolonialism and Power Imbalances: Dependency theory can be used to analyze the portrayal of neocolonial influences in the novel. The narrative highlights power imbalances between the ruling elite, often aligned with external interests, and the marginalized population. The economic dependence of the nation on foreign powers is a recurring theme.
3. Nervous Conditions by Tsitsi Dangarembga:
   • Impact of Global Capitalism: Dependency theory can be applied to critique how the novel reflects the impact of global capitalism on post-colonial Zimbabwe. The narrative explores economic disparities, unequal access to education, and the perpetuation of dependency as characters navigate a society influenced by global economic structures.
4. The Feast of the Goat by Mario Vargas Llosa:
   • Political Dependence and Authoritarian Rule: Dependency theory can be employed to analyze the novel’s depiction of political dependence and authoritarian rule in the Dominican Republic. The narrative explores how political decisions are influenced by external powers, contributing to a cycle of political instability and economic dependency.

Dependency Theory: Criticism Against It

• Overemphasis on Economic Factors:
  • Critics argue that dependency theory places excessive emphasis on economic factors while neglecting other influential aspects, such as cultural, political, and institutional factors. This oversimplification may limit the theory’s explanatory power in understanding the complexities of development.
• Homogenization of Developing Nations:
  • Dependency theory has been criticized for treating all developing nations as a homogenous group, overlooking the diversity within these countries. Not all underdeveloped nations share the same historical experiences or face identical challenges, leading to a potential oversimplification of global dynamics.
• Neglect of Internal Factors:
  • Some critics argue that dependency theory tends to overlook internal factors and domestic policies that contribute to underdevelopment. By focusing predominantly on external forces, the theory may downplay the significance of local governance, corruption, and other internal issues.
• Limited Predictive Power:
  • Dependency theory has faced criticism for its limited predictive power. Critics argue that the theory is retrospective rather than prospective, explaining historical patterns but providing less guidance on future developments or policy prescriptions. This limitation diminishes its utility in shaping effective development strategies.
• Assumption of Zero-Sum Game:
  • Dependency theory has been accused of assuming a zero-sum game between developed and underdeveloped nations, implying that the development of one necessarily leads to the underdevelopment of another. Critics argue that this perspective oversimplifies the complexity of global interactions.
• Failure to Adapt to Changing Global Dynamics:
  • The global economic landscape has undergone significant changes since the formulation of dependency theory, including the rise of newly industrialized countries. Critics argue that the theory’s framework may not fully accommodate these changes, limiting its relevance in explaining contemporary global economic relations.
• Lack of Attention to Agency:
  • Dependency theory is criticized for portraying underdeveloped nations as passive victims of external exploitation, neglecting the agency and capacity of these nations to shape their own destinies. Critics argue that the theory undermines the potential for self-directed development efforts.
• Static Core-Periphery Model:
  • The core-periphery model, a central concept in dependency theory, has been criticized for its static portrayal of global dynamics. Critics argue that the model does not adequately account for shifts in economic power, globalization trends, and the emergence of new players on the international stage.
• Limited Policy Prescriptions:
  • Dependency theory has been faulted for providing limited practical policy prescriptions for overcoming underdevelopment. Critics contend that the theory’s emphasis on challenging global structures may not offer actionable strategies for promoting economic growth and development in specific contexts.
• Ignoring Successful Cases of Development:
  • Critics point out that dependency theory tends to overlook instances where nations have successfully developed despite historical dependencies. The theory’s focus on constraints may lead to neglecting examples of effective development strategies and policies.

Dependency Theory: Terms Used in It

Dependency Theory Terms	Description
Core-Periphery Model	Illustrates global economic division, emphasizing core (developed) and periphery (underdeveloped) nations.
Unequal Exchange	Describes imbalances in international trade favoring developed nations, contributing to underdevelopment.
Import Substitution Industrialization (ISI)	Development strategy advocating the growth of domestic industries to reduce dependency on imports.
Neocolonialism	Refers to indirect economic and political control by former colonial powers, influencing post-colonial nations.
Structural Inequality	Highlights the inherent inequality in the global economic system, disadvantaging underdeveloped nations.
Underdevelopment	Viewed as a systemic outcome of global capitalism, with certain nations structurally disadvantaged.
Dependency and World-System	Concepts central to dependency theory, emphasizing global interconnections and power dynamics.
Historical Legacy of Colonialism	Acknowledges lasting impact of colonial exploitation on economic relationships and development.
Economic Dualism	Refers to the coexistence of modern and traditional sectors within underdeveloped economies.
Global Capitalist System Analysis	Encourages examination of the impact of the global capitalist system on economic development.

Dependency Theory: Suggested Readings

1. Cardoso, Fernando Henrique, and Enzo Faletto. Dependency and Development in Latin America. University of California Press, 1979.
2. Frank, Andre Gunder. Capitalism and Underdevelopment in Latin America. Monthly Review Press, 1967.
3. Prebisch, Raúl. The Economic Development of Latin America and Its Principal Problems. United Nations, 1950.
4. Amin, Samir. Accumulation on a World Scale: A Critique of the Theory of Underdevelopment. Monthly Review Press, 1970.
5. Dos Santos, Theotonio. The Structure of Dependence. American Economic Association, 1970.
6. Emmanuel, Arghiri. Unequal Exchange: A Study of the Imperialism of Trade. Monthly Review Press, 1972.
7. Evans, Peter B. Dependent Development: The Alliance of Multinational, State, and Local Capital in Brazil. Princeton University Press, 1979.