Evaluate critically the contribution of the dependency theory to the understanding of the causes and processes of underdevelopment

p Evaluate critically the contribution of the dependency theory to the understanding of the causes and processes of underdevelopment

Introduction

Underdevelopment has been explained in different ways by a large number of social scientists . There are cultural explanations that seek to understand how societal values and beliefs matter in development of societies . Sociological explanations seek to explain development through the structure that defines societies by way of the various classes and castes that inhabit them . Anthropological explanations examine development through genetic predispositions and the racial characteristics of the inhabitants of

any society . Historical explanations look at major accidents and events that could have shaped the destiny of any region and hence its economic development . Some demographers have claimed that overpopulation causes underdevelopment while others blame scarce population for the same . Some blame corruption while others explain underdevelopment through human rights violations

Economists too have tried to explain the differential ways in which various groups develop . The Dependency theory is one such explanation that focuses on agriculture based economies an d explains how these economies then are used as sources of cheap raw material by the developed world that adds value to the raw material and exports finished goods back to the same countries . This theory was expounded by Baran in 1957 where he explained how such economic drain happened in colonies that were ruled by the richer nations of Europe and how these poor economies were impoverished in return (Baran , 1957 ,

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Economic drain

The dependency theory was also referred to as the Economic drain theory Dadabhai Naoroji writing in the nineteenth century in his book titled UnBritish rule in India discusses how the colonial might of the British Empire fulfilled its goal of economic imperialism in India (Naoroji 2006 ,

23- ) The export led growth theory that defined England 's economic thinking in the nineteenth century put great focus on the provision of cheap imports . This ensured that the British in all their colonies encouraged local farmers and manufacturers to provide the British with cotton , coal , indigo and other supplies that would feed the large factories in Manchester . This lead to lop sided pattern on unsustainable and dependent production that was then rudely disturbed as industrialisation happened and priorities changed . As a result a vulnerable population was left with no option but acute dependence and therefore could not develop its local strengths (Frank , 1978 ,

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The drain that caused dependency was further exacerbated by the fact that the buyer was operating in a monopsony and could also dictate prices , being the sole buyer . The seller , in the absence of competitive buying , was at the mercy of the ruler who ruled in a buyer 's market (Wolff , 1974 ,

61 ) Given the fact that the colonies were also technologically backward and depended on the rulers for their technological inputs , the sellers were completely at a disadvantage . It is argued that very often the buyer would renege on prices and also cancel s at will . The farmer and the small...