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Dependency Theory: Quest for Development in Underdeveloped Countries

Introduction
Quest for development for under develop country mentions the identification of future periphery of development specially focused on globalization. Development is a comprehensive term which is related to the social, economical, technological, political, cultural & other relevant issues. To understand the development of the under develop country the political, military & economic relationship study is also essential. The dependency theory is related to development. The dependency relation within the humanity has the impact to identify the mission of undeveloped countries. Poverty Reduction, Education, health, disaster, and environment will be more priorities issue to ensure the sustainable development. Measurement of development is also become very crucial issue. Result base measurement can help to understand the development itself as well as the complete situation.

Development
Development is a complex issue, with many different and sometimes contentious definitions. A basic perspective equates development with economic growth. The United Nations Development Programme uses a more detailed definition- according to them development is 'to lead long and healthy lives, to be knowledgeable, to have access to the resources needed for a decent standard of living and to be able to participate in the life of the community.' “Development means a desirable change of existing situation encompassing different dimensions.” (Rahman, 2010) (Rahman, A K M Motin, (2010), Poverty, Poverty Alleviation & Development, the Linkage, NGO and Development Myth & Reality, AH Development Publishing House, 143 New market Dhaka, Bangladesh, P-24.) Achieving human development is linked to a third perspective of development which views it as freeing people from obstacles that affect their ability to develop their own lives and communities. Development, therefore, is empowerment: it is about local people taking control of their own lives, expressing their own demands and finding their own solutions to their problems Adam Smith’s Wealth of Nations (1776), Learning about development can help us understand more about the causes of and solutions to these problems and can help us be better informed volunteers, addressing not just the superficial poverty related issues but the deeper rooted causes as well.

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Develop a need based qualitative formal & non formal education mechanism among the poor community. Health : Review the existing Guidelines/Curriculums especially adult literacy curriculum & ensure quality education. Poverty reduction. The following issues based specific development also helps to address eradicate poverty in underdeveloped countries. Human Rights: Aware community about Right especially on Human & fundamental right. 2 . Climate Change: The National Adaptation Program of Action (NAPA) 2005 prepared by Bangladesh Government. Agriculture: Initiate women friendly new & innovative income generating activities. Ensure right from the public service delivery institute. Empower women for specially focused on discussion making process. Initiative taken to ensure service from the existing policy. The focal point and Specific Development activities Food Security: Ensure food security through raising agriculture production with the help of environmental friendly updated & effective new technology. livelihood security and gender perspective are given the highest priority. Education: Develop/update & implement education policy to achieve the goal of Education for all.Dependency Theory: Quest for Development in Underdeveloped Countries Dimensions of entire development in underdeveloped countries To address the entire development in underdeveloped countries there is no alternative to find out the root cause of poverty. Initiate gender focused environmental friendly agro processing center. Influence Government to initiate/develop pro poor policy.s).(SME.

that suggest that the wealthy nations of the world need a peripheral group of poorer states in order to remain wealthy. perpetuate a state of dependency through various policies and initiatives. education. Theotonio Dos Santos. adapted it to Marxism. Dependency theory first emerged in the 1950s. sport and all aspects of human resource development. a destination for obsolete technology. however. First world nations actively. politics. and consequently world trade. banking and finance. The theory quickly divided into diverse schools. Achieve MDG Goal/PRSP target: MDG & PRSP focused program initiates & implement accordingly. and called it the "world system. media control. arguing against internationalism and any hope of progress in less developed nations towards industrialization and a liberating revolution. involving economics. Former Brazilian President Fernando Henrique Cardoso wrote extensively on dependency theory while in political exile. and dependency is enforced far more by the wealthy nations setting the rules of international trade and commerce. Basic Concept of dependency theory Dependency theory is the body of theories by various intellectuals. but not necessarily consciously." According to Brazilian social scientist. assumes the form of dependence when dominant countries can create dependency 3 . cheap labor. without which they could not have the standard of living they enjoy. both from the Third World and the First World. however. Any attempt by the dependent nations to resist the influences of dependency could result in economic sanctions and/or military invasion and control. He goes on to further clarify that the interdependence of two or more economies. This state of dependency is multifaceted. This is rare.Dependency Theory: Quest for Development in Underdeveloped Countries Employment Creation: Create diversified employment specially focused on ultra poor community. The American sociologist Immanuel Wallerstein refined the Marxist aspect of the theory. These poor nations provide natural resources. Dependency theory states that the poverty of the countries in the periphery is not because they are not integrated into the world system. most notably Andre Gunder Frank. dependence means a situation in which certain countries economies’ are conditioned by the development & expansion of another to which the former is subject. "Standard" dependency theory differs sharply from Marxism. and markets to the wealthy nations. advocated by Raul Prebisch whose research found that the wealth of poor nations tended to decrease when the wealth of rich nations increased. Some. but because of how they are integrated into the system.

This limitation of alternatives differs from limitations in the dominant nations in so far as the functioning of the basic decisions in the world market. classes.are determined by the dominant nations. When the imperialist powers could no longer hold on to power in the formerly colonized territories [due to armed struggle] they were forced to surrender power. that the development alternatives open to the dependent nation are defined and limited by its integration into and functions within the world market. Thus. made sure that they left the reins of power in "good hands" They handed power over to their internal collaborators. Military and economic Because of the unequal political. Academic Search Complete. and power arrangements. Thus the dependent nations must make choices in a situation in which they do not set the terms or parameters of choice. EBSCO. Dependency relations & the social structure of underdevelopment Dependency relations have also shaped the social structure of underdevelopment. They did not hesitate to create and finance political parties in opposition to real nationalist ones. in some cases.Irogbe. Dependency theory 2. Kema "GLOBALIZATION AND THE DEVELOPMENT OF UNDERDEVELOPMENT OF THE THIRD WORLD. Dependency means. 2009. The imperialists.. the structure of the former is shaped as much or more by the requirements of the external economy as by its own 4 . military. and economic relationships between a dependent economy and the dominant external economy. Web. Development in relations with Political.Dependency Theory: Quest for Development in Underdeveloped Countries only as a reflection of that expansion.. and they also rigged elections and used various other means to make sure that they handed over to those who would continue with the colonial policies in the nominally independent countries.. The international system or world market upon which the underdeveloped countries depend implies a structure that is characterized by institutions." Journal of Third World Studies 22. which can have a negative effect on the subordinate’s immediate economy. then.1 (2005): 41-68. a crucial problem of underdevelopment is that in this process of dependency there is a convergence of interest between the local or internal bourgeois and the external capitalist oligarchies. 17 Oct. The internal compradors greatly benefit from their dependency situation and they are unlikely to sever such a lucrative relationship unless they are forced to do so.

the unexplained residual.. Adam Smith could write that “in a civilized and thriving country … the accommodation of prince does not always so much exceed that of an industrious and frugal peasant.Dependency Theory: Quest for Development in Underdeveloped Countries domestic needs. including factors like the strength of the rule of law. Equally striking. Indeed. The role of social capability in underdeveloped country The discussion to this point suggests that there are good reasons to believe that the social and political environment of a country plays an important role in determining its rate of economic growth. The process tends to ensure selfreinforcing accumulation of the privilege for special groups as well as the continued existence of a marginal class. 5 . as we know it. the gap between the world’s richest and poorest nations widened. As the industrial revolution that was only beginning in Smith’s time deepened and gradually spread. Economic growth. Foreign factors of underdeveloped country Foreign factors are seen not as external but as intrinsic to the system. Access to the means and benefits of development is selective rather than spreading them. (The Quest for Development. the concept of "dependencia" links the postwar evolution of capitalism internationally to the discriminatory nature of the local process of development. but is also shaped by the process. is the unevenness of the distribution of changes in income levels worldwide. the economies of the dependence would be impossible to maintain without the existence and the support of the external factors. financial. Thus. However.. as the accommodation of the latter exceeds that of many an African king. and education World economic history records dramatic changes in living standards over the past few centuries due to unprecedented and sustained technological and organizational change. the absolute master of the lives and liberties of ten thousand naked savages. however. technical and cultural effects inside the underdeveloped country. Already. with manifold and sometimes hidden or subtle political. 2004) It is a truism that the sustained increases in average incomes in industrialized countries have given the majority of households in those countries standards of living reserved in earlier centuries for only the wealthiest individuals. The domestic political economy is not only shaped by the interaction with a more powerful external economy. economic. in 1776.

twenty-four were not purely economic. and Degree of modernization of outlook. 153)”: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Size of the traditional agricultural sector. Importance of indigenous middle class. the most explanatory power) were twelve “… which could be interpreted to represent the processes of changes in attitudes and institutions associated with the breakdown of traditional social organizations (p. To gain quantitative insight into the relationship of these factors with the level and pace of economic development. Crude fertility rate. Extent of urbanization. they use an index which Irma Adelman and Cynthia Morris (1967) constructed in an effort to study the economic and non-economic forces at work during the process of development. They constructed four factors—of which the first one explained as much as 53% of the variation in per capita GNP in 1961. Extent of mass communications. Of these 41. However the weight or loading of each variable differs across the factors. Extent of literacy. Extent of social mobility. trust. Character of basic social organization. With these twenty-four variables they performed a factor analysis. Degree of cultural and ethnic homogeneity. and ethnic homogeneity as separate and exogenous elements in a model of economic growth is in some respects unsatisfying. Countries were ranked on a scale with one pole being the largely agrarian society having an extremely small exchange 6 . Degree of national integration and sense of national unity. All 24 variables were used to construct each factor. Temple and Johnson (1998) take up Abramovitz’s idea of social capability and attempt to test it more formally. Defined as the fraction of the population engaged in self-sufficient subsistence agriculture. a statistical procedure for simplifying a large set of data and discovering its underlying regularities.e. In this factor the set of variables which had the highest loadings (i. they defined 41 indicators of socio-political and economic organization and development.Dependency Theory: Quest for Development in Underdeveloped Countries level of political stability. Extent of dualism. To proxy for social capability.

suggested are properly activated only in regions with access to international trade.Dependency Theory: Quest for Development in Underdeveloped Countries sector and the other pole being “the incipient stage of economic maturity in which continuous interaction between modern and non modern sectors is a pervasive phenomenon” (p. Social mobility is assumed to be signified by broad access to educational attainment. but the opposite relationship for non-coastal areas. Ethnic heterogeneity. emphasized by Easterly and Levine among others. measures of “institutional quality” and “political stability” may be related to Abramovitz’s capacity to operate large-scale organizations. Based on a definition and data from the Urban Land Institute. or the tribe. Thus. 23). Based on (a) Statistical estimates of the importance of selected middle-class occupations. 1970s. 7 . importance of the indigenous middle class. factors which Gallup et al. Both papers attribute the positive effects to Smithian factors. together with (b) Qualitative information concerning the comparative weight of indigenous and expatriate elements in the middle class. and absence of prohibitive cultural and ethnic barriers. who found a robust positive relationship with growth when controlling for other demographic variables and initial per capita income in both panel and cross-sectional estimates covering 89 countries in the 1960s. including Kelley and Schmidt (1995). Sachs and Mellinger (1999) found a significant positive relationship between growth and population density in coastal areas. The conceptualization of social capability as a function of a society’s pre-modern experience offers an integrative framework potentially capable of encompassing a large number of the non-economic influences on growth discussed earlier. the extended family (or clan). is to a substantial degree a function of the relationship between the size of the nation and the size of pre-modern socio. This is a purely qualitative indicator with countries divided into three groups based on whether the principal form of social organization as of about 1960 was the immediate family group. and 1980s. Relationship between population density and recent economic growth in development countries A positive relationship between population density and recent economic growth has also been found in other studies. Gallup. which in turn may be influenced by preindustrial experience.

there would thus be more ethnic heterogeneity the lower is PID. Asia and Latin America. it is not the case with the developed countries. and constituted as markets for imported manufactures from the same metropolitan countries. underdevelopment is not an original state as some apologists would have us believe. 2002). Such fluctuations almost always result in unfavorable terms of trade in relation to imports. as "developing" countries as if to say their development is evolutionary.. With their economic and military power. Johnson and Robinson (2001. Development Measure At the low-intensity end of the pre-modern development continuum. Thus. The effect of the colonial experience features prominently in studies by Acemoglu. under the control of metropolitan capital. The interaction between the colonial experience and pre-colonial development is discussed at greater length in Putterman (2000). Africa. and for the maintenance of law and order. Foreign capital came in to construct social overheads . by many.transportation facilities and utilities that would enhance the exploitation of the people and their natural resources. the prices of which fluctuate and quite often are manipulated by the rich and powerful nations. Today. The argument is that historical situations of dependency have conditioned contemporary underdevelopment in Africa. Development review of colonial Nations During the colonial era. The now developed (center) countries have never had the same historical experience compared to that of the impoverished countries of the world. governments of the underdeveloped countries and their entrepreneurs have no control over international markets for primary products.g. For an exogenously given size of nation state (e. the largest sociopolitical units were tribes likely to have distinct ethnic identities and languages. Whereas the underdeveloped countries have experienced the phenomena of slavery and colonialism. the nations created by the colonial powers in Africa). Two respects in which these measures are imperfect or incomplete are: 8 .Dependency Theory: Quest for Development in Underdeveloped Countries Other fundamental concern of dependency theory Another fundamental concern of the dependency theory revolves around the notion that the underdeveloped countries are referred to. Latin America and Asia as well as other colonized territories in the world became oriented to the export of primary products (principally agricultural). Europe (later joined by the United States) successfully controlled the underdeveloped countries for their material benefits.

The correlation of the statehist index used by Bockstette et al. A further difference is that the initial GDP and investment ratio variables are included in log form in MRW but in level form in Burkett et al. which can include vast stretches of uninhabited land. our tests show that it is the definition of the GDP variable. implying that each captures a somewhat different dimension of the countries’ “initial conditions” for modern growth. and the degree to which those places have been able to interact. Chanda and Putterman (forthcoming) find that a similar index that considers state experience up to the year 1500 C. Education & Development of underdeveloped world Formal education is surely one of the requirements for closing the gap in developmental potential. Sub-Saharan education levels in 1990 were in several respects still behind those attained by East Asia in 1940 and the Americas in the 1950s.edu/faculty/putterman/ index.447 when Latin American countries are excluded. However.Dependency Theory: Quest for Development in Underdeveloped Countries (1) the population densities of the places where people actually live.brown. not this functional form that drives the difference in results with respect to the PID and social development variables. and that this is projected to remain the case well into this century. (2002) with the social development index is a high 0. and it weighs more heavily more recent experience by discounting the past (the main version explored applies a 5% discount rate per 50 year period). However. that sub-Saharan African countries have lagged decidedly behind East Asia and the Americas in formal education at all levels throughout the period 1960–90. Sub-Saharan countries also lagged far behind the other two regions in such 9 .pstc. but the two variables are essentially uncorrelated when those countries are included. may be more important than the ratio of population to total land. In subsequent work. for instance. which follows Barro (1991) and others. 1960 population density and the state antiquity index are each highly significant when included in the same regression. both in full world samples and in samples including present-day developing countries only. including a set of region dummies.. Details on and a revised version of the state antiquity index can be found at http://econ.html. The state antiquity index gives more weight to indigenous governments and to governments ruling more of the present-day territory of a country. only is an equally strong predictor of 1960–95 growth rates.E. and foragers in the recent pre-modern society. and one that is robust to the inclusion of numerous control variables. a look at the available data shows. (2) The measures do not directly account for the relative importance of pastoralists. During 1960–95. nomads.

Planning and Execution of Development Program In developing countries like Bangladesh. in many cases. but also because in a world of bounded rationality. Recent trends as reported by UNESCO suggest that the gap is on the way to closing in a few categories only. development programs are undertaken and executed to serve the narrow party interest of the political party in power at the expense of the national interest. Moreover. in the long run. But it has been observed that.” which is quite different from mechanically entering human capital into a production function. Good governance. 1998. for obvious reasons. world leaders affirmed their commitment to promote democracy and strengthen the rule of law as well as to respect internationally recognized human rights and fundamental freedoms. government executing agencies and the 10 . human rights and sustainable development has been made directly or indirectly by the international community in a number of declarations and other global conference documents In the Millennium Declaration. culture. including the right to development. One can think of human capital’s role as one that facilitates the “development of capabilities.Dependency Theory: Quest for Development in Underdeveloped Countries professional training areas as law and engineering even when programs similar to a bachelor’s level or below are included. The other phenomenon that is very much in existence in Bangladesh is that the people who are associated with the ruling party are awarded with various contracts relating to the execution of the development programs. a nexus is developed between the political parties. as will the standard policy These and other conclusions and evidence are presented in Chanda and Putterman. Such practices breed corruption and the quality of the execution of the development programs also suffers. and routine mediate the flow of ideas. Sometimes. An explanation of why the impact of education on growth has been difficult to measure may lie in the way in which we model that impact. initiatives for balanced development of the different parts of the country should come from the government. human rights and development The interconnection between good governance. Greater emphasis on development in some of the broader senses touched upon above may therefore bear as much fruit. not only because of differences in command of formal knowledge. the government has to shoulder the major responsibility with respect to economic and social sector development. Neither social nor technological capabilities flow across international boundaries in the frictionless fashion sometimes postulated. attitudes.

The advocate of dependency views the phenomena of development and under development form the point of world system perspective. According to the capitalist development in the central countries has resulting effect of under development in periphery countries. This paper has centered on the suggestion that these variables may themselves be summarized under the heading of social capability or of a societal capacity for growth. not narrow party and or other interests should come into prominence in the planning and execution of the development programs.Dependency Theory: Quest for Development in Underdeveloped Countries implementers/contractors that results in waste and unnecessary cost escalation of development projects. Rashid Chowdhury) Conclusion Dependency infarct a result of integrated of different complicated variables. Women & Development: It is clear from many studies that women are not always viewed as agents for development in development programmes. ( Article_Emerging women entrepreneurs in SMEs Professor Masuda M. The issue of women's development remains greatly welfare-oriented and the national budget of Bangladesh targets only poor and distressed women who have little potential for undertaking business venture. and on the idea that this capacity may in its own turn to an important degree be a function of preindustrial history. Women issues should be treated with care and on priority basis. The proximate causes are aspects of each society’s stock of broad human capital that position them differentially to embark on modern growth. But the concept of neutral governance with respect to planning and execution of the development programs suggests that national. distressed and destitute when they take up women's development issues. Although our evidence 11 . The planners often identify women as poor. even though there is a marked change in gender policies and gender development objectives of the government. Only then can women get their due legal and professional protection. A considerable portion of cross-country differences in economic growth performance appears to be attributable to differences in institutional and social variables.

skills. for instance in sub-Saharan Africa. Particular histories may have facilitated the modernization of some societies more than others in the past century. Indeed. using direct measurements of literacy. may have made considerable progress in closing the gap in pre-conditions for development during the same post-War decades in which their per capita GDP growth lagged so dramatically. But a careful assessment of that progress. rather than population density is called for before definite conclusions can be reached. 12 .Dependency Theory: Quest for Development in Underdeveloped Countries suggests that legacies of past centuries have strongly influenced the human capital bases inherited by countries in the century now ending. but the possibility for social modernization is in principle available to all. and so on. If enough such progress has been made. then the negative implication that slow post-War growth may have been “foreordained” may be less important than the optimistic implication that accelerated growth is now a real possibility. the head-start on modernization enjoyed by some societies need not be permanently decisive. some of the more historically disadvantaged countries.

m.Version: January 2010 ECONOMIC DEVELOPMENT IN A CHANGING GLOBALISED ECONOMY: THE CASE OF DEVELOPING COUNTRIES Mozammel Huq.Syracuse University. Box 90153. “A New System for Formatting Estimation Tables. Hanson. 5000 LE Tilburg.Harmondswoth: Penguin Books (Glasgow. Areendam Chanda & Louis Putterman. A (1776)/(1982).” Submitted to Stata Journal.huq@strath. Reversals and Catchup in The Process of Economic Development∗ Areendam Chanda Louis Putterman North Carolina State University Brown University John Luke Gallup. September. G4 0LN. The Netherlands Received in revised form 24 June 2004. 2010 The Quest for Development. P.Department of Economics. Scotland.Dependency Theory: Quest for Development in Underdeveloped Countries Reference Democracy and State Capacity:Complements or Substitutes? Jonathan K. An Inquiry into the Nature and Causes of the Wealth of Nations. 2 • April–June 2004 Smith.uk>) Social capital and growth in European regions:an empirical test CentER. Tilburg University.O. Available online 21 November 2004 13 . University of Strathclyde Early Starts. 5 • No. WORLD ECONOMICS Vol. E-mail: <m.ac. Warandelaan 2.