40 marker dependency theory Flashcards
(6 cards)
Introduction
Dependency Theory: attempts to understand why countries are less developed by others.
Paragraph 1: Metropolis vs Satellite
P: Metropolis; developed country (USA) Satellite; underdeveloped country (Kenya)
E: Metropolises try to keep satellites underdeveloped to keep exploiting them to reap the benefits of cheap labour
E: Chain of dependency (Frank 1969); a chain that runs from metropolises to merchants in satellites in which satellites are dependent on metropolises due to surplus value they take from their country leaving them in poverty/debt.
Paragraph 2: Metropolis and TNCs
P: Metropolis uses TNC to exploit Satellite
E: Number of EPZs have increased from 1975 to 2006 by 3600, employment rate tripling since 1997
E: Use EPZs in order to achieve cheap labour and further exploitation of workers. Metropolises invest in TMCs to “boost economy” (providing employment, inc trade) in satellites yet they remain underdeveloped
Paragraph 3: Neo-colonialism
P: Neo-colonialism; former colonial powers attempt to retain dominance over former colonies
E: Jary and Jary (1991); defined neo-colonialism as advanced industrial countries dominating third world countries
E: underdeveloped countries cause collapse in colony due to uprisings but are still dependent on colonials economy so therefore leave a chance to be dominated again
Paragraph 4: Neo-Colonialism and Loans
P: Due to neocolonialism, loans from developed countries maintain dependence by UDCs by maintaining dependence on western aid/ trade
E: Theresa Hayter (1981) Cash Crops; False riches for developing countries due to cash crops being exported (with falling prices due to UDC inc need so income decreases)
E: reduced price due to excess product that has been produced to make money to pay off loans, further decreases income, causes economy to plummet and country remains underdeveloped.
Conclusion
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