ECON 3008: HISTORY OF

ECONOMIC THOUGHT
SEMESTER 2-2016
DEPENDENCY THEORY AND
PLANTATION SCHOOL

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 LECTURE OUTLINE
Dependency Theory
Key Economists and Contributions
Plantation School
W. Arthur Lewis
Questions

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Foundations developed Criticisms:
in late 1950s as a -Lack of sig. empirical
critical reaction to
DEPENDENCY evidence supporting
modernization theory. THEORY conclusions.
-Ignores internal factors
Explained the of development
persistent poverty and -East Asian economies
underdevelopment in 3rd developed in the capitalist
world countries. system serving as a
contradiction to
dependency.
• Structuralists
• Neo-Marxists Differed from:
• World Systems Neoclassical theory
Theorists Theories of
Imperialism

Advocates: State of dependency is

They make a distinction
Raul Prebisch,, enforced by the
between 2 states:
Paul Baran, wealthy nations and
dominant/dependent,
Andre Gunder Frank, due to poor states
core/periphery and
Samir Amin, being integrated into
metropolitan/satellite
Oliver C. Cox, the world capitalist
Immanuel Wallerstein system.
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 ECONOMIST KEY PUBLICATIONS MAIN CONTRIBUTIONS
The Economic Development of Latin -Structuralist , Prebisch-Singer hyp.
America and its Principal Problems (1950) -Core and periphery relationship.
RAUL PREBISCH
English version -Solution : ISI, do not purchase
(1901-1986)
manufactured products from richer
states.
The Political Economy of Growth (1957) -Center and Periphery relations
Monopoly Capital (with Paul Sweezy) -Lack of dynamism in underdeveloped
PAUL A. BARAN (1966) world…state due to parasitism and drain
(1910-1964) of economic surplus.
-Solution: political revolution.
“Capitalism and Underdevelopment in -Metropolis and Satellite relationship
ANDRE GUNDER Latin America: Historical Studies of Chile -Capitalist development in Latin
FRANK and Brazil” (1967) America and satellites impossible,
(1929-2005) The Development of Underdevelopment -Solution: de-link
(1966)
The Capitalist World-Economy (1979) -World System Theory: capitalist world
IMMANUEL World‑Systems Analysis: Theory and economy total world system.
WALLERSTEIN Methodology. (1982) -Core, semi-periphery and periphery
(1930- )

Caste, Class and Race (1948) -Capitalism and Racism

OLIVER COX Foundations of Capitalism (1959) -Racism emerged from the class
(1901-1974) Capitalism and American leadership structure of capitalism.
(TRINIDADIAN!!) (1962) -A founder of world-system theory.
Capitalism as a system (1964)
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 Criticisms:
 A subset of Caribbean -It has simply recounted
PLANTATION SCHOOL the history of the
Dependency Thought.
 Historical-Institutional- Caribbean...
Structural Approach to -Controversy over
dependency typologies of plantation
economy. (not meeting the
requirements of true
models).

• Metropolitan and
Formulated by the Hinterlands
“New World Group” in • 5 rules of the game
1960s to early 1970. • 3 models of plantation
economy
• Distinction: onshore &
offshore sectors.

Belief: the prominent Contributors: The Plantation

relationships that Lloyd Best Economy Models- (Best
existed during George Beckford and Levitt)
colonization and Kari Levitt The Plantation
plantation were still C.Y Thomas Economy System-
recurring… Norman Girvan (Beckford)
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Born in St. Lucia., W.I.
Attended the London W. ARTHUR LEWIS
School of Economics on
scholarship at 18,
earning his BSc. In 1937
and Ph.D. in 1940.
Lecturer/Professor at
University of London
,University of
Manchester and
Princeton.
Nobel Prize(with
Theodore Schultz) in
(1915-1991) 1979, for “pioneering
research into
economic
development ... with
particular
consideration of the
problems of developing
countries.”

Contributions to the
Well-known works:
Caribbean:
1954 “Economic
Industrialization of
Precursor to Caribbean Development with
British West Indies-
Dependency thought: Unlimited Supplies of
(1949, 1950)
unemployment, dual Labour.”
Vice Chancellor of the
economy and 1955 “The Theory of
UWI (1959)
industrialization. Economic Growth”
1st President of the
CDB (1970)
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QUESTIONS

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 1
What theory is the dependency school
critical of ?

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 ANSWER
Modernization theory

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 2
What are the 3 distinct groupings that
make up dependency theory?

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 ANSWER
Neo-Marxists
Structuralists
World Systems Theorists

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 3
Name the 3 types of states identified in
Wallerstein’s “World Systems Theory”.

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 ANSWER
Core
Semi-periphery
Periphery

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 4
According to Lloyd Best and Kari Levitt,
what are the five (5) major rules of the
game?

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 ANSWER
1. Inter-caetera
2. Muscovado Bias
3. Navigation Provision
4. Imperial Preference
5. Metropolitan Exchange Std.

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 5
What publication of W.A. Lewis is his
most well-known contribution to
development economics?

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 ANSWER
Economic Development with Unlimited
Supplies of Labour (1954)

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 WEEK DATE TOPICS
I. Introduction
1 22nd Jan II. Early Pre-classicals
I. Mercantilists and Physiocrats
2 29th Jan
I. Classical Political Economy: Adam Smith
3 5 Feb
th II. Classical Political Economy: Thomas Malthus
III. Classical Political Economy: David Ricardo
I. Classical Political Economy: J.S. Mill
4 11th Feb II. Critique of Capitalism and Classical P. Economy: Karl Marx
I. Critique of Capitalism and Classical P. Economy: Lenin, Bukharin,
5 18th Feb Luxemburg
II. Critique of Capitalism and Classical P. Economy: Austrian School
I. Marginalist Revolution: Walras, Jevons, Menger
6 25th Feb
7 3rd Mar I. Neo-classical: Marshall, Samuelson
I. Keynesian: Keynes and the Keynesians
8 10th Mar II. Monetarists: Friedman
I. Dependency Theory: W.A Lewis, Baran, Frank, Amin, Cox, Wallerstein and
9 17th Mar others
II. Dependency: Plantation School
I. New Classicals: Sargent, Lucas
NEXT 10 24th Mar II. Supply-siders: Laffer, Becker
WEEK I. Radical approaches: Post-Keynesians
11 31st Mar II. Radical approaches: Institutionalists
12 7th Apr I. Final Lecture
I. Review/Exam Discussion
13 14th Apr

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 SOURCES
Arestis,P and Sawyer, M. (2000), “A Biographical Dictionary of
Dissenting Economists” Edward Elgar.
Girvan, Norman (2006) “Caribbean Dependency Thought Revisited”
Accessed from: http://
www.normangirvan.info/wp-content/uploads/2007/10/caribbean-dep
endency-thought-cjds_sept-2006.pdf

Girvan,Norman (2005) “W.A Lewis, the Plantation School and

Dependency: An Interpretation. Social and Economic Studies”, 54:3.
Websites:
◦ http://www.econlib.org/library/Enc/bios/Lewis.html
◦ http://sta.uwi.edu/nlc/2008/documents/Girvan_Lecture_full.pdf
◦ https://www.mtholyoke.edu/acad/intrel/depend.htm
◦ http://prebisch.cepal.org/sites/default/files/Prebisch%20por%20Dosman.pdf.
◦ http://sincronia.cucsh.udg.mx/reyes4.htm
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