Last updated: September 11, 2019
Topic: BusinessAgriculture
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By the 1960s-1970s out of central and south America the dependencytheory immerged but it was part of a larger movement that asked a lot ofquestions about international relations at the time, one of these questions waswhy are so many countries in the world not developing, and the traditionalanswer was that they are not pursuing the right economic policies or theirgovernments are authoritarian and corrupt. But dependency theorists wanted toknow if that was all, they began to argue that countries are not developingbecause the international system actually preventing them to, thisinternational system was exploitative and characterized by the dominant of somecountries over others. It can be described as an Assembly of different theoriesincluding world system, historical structure and neo-Marxist theory which are componentsof the dependency theory.             The dependencytheorist first argued about the presence of different kinds of states, and eachone preform a different function in world economy. The richest; Center of corecountries to the poorest; periphery of the periphery.

And what the argue thatthere is an international division of labor between all these countries, Theargument is that the core countries dominate in terms of industry tech, countriesthat have all research technology and capital intensive industries meanwhile thecountries in the periphery  arecharacterized by resource extraction economies, agriculture production andproviding cheap labor. As a result the structure of the world economy is thatany poorer country serve’s the richer ones. Second argument is that there is a classdistinction, which means that each of these type of countries have a cleardivide between the large working class and small rich class and this is thesame in each different countries, what they argue that these political economicelites cooperate with each other to insure that they stay in power and increasetheir wealth maintain the system the way it is. Third argument is that all thestructure of the world exist in a wider global system which is characterized byGlobal capitalism; and in this system liberal economic theory dominate, tradeand finance theories which of course all serve the interest of the corecountries. In addition Multinational corporations and banks in this system are instrumentsfor rich people in the core countries, international institutions like the WorldBank, international monetary fund, education system and even global media alsowere structures that serves the most powerful countries and the richest people ofthe world.              As a result thisentire system; the international division of labor, class distinction andglobal capitalism, all serve the interest of the wealthy they don’t serve theinterest of developing countries, they do not promote development or equalopportunity instead this system promotes dominance and exploitation. And sofrom the dependency theory perspective the states could not develop in thiskind of system which is designed to prevent them from developing, which madethe dependency theorist call this underdevelopment. So the system promotesunder development of countries around the world and this is why we are notseeing countries develop in the way that traditional economic theory describes.

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This theory can explain to us why there is so much poverty and inequality inworld politics, which can be explained by the same argument made in the 1970s,that the international system actually prevents countries from developing.             The structures ofunderdevelopment countries was not entirely ignored, it remains true thatindeed for Parsons, the empirical development of the Third World was very mucha secondary matter. And according to Gunder Franka German-American economic historian and sociologist who promoted dependency,modernization theory was empirically invalid, theoretically inadequate andpolitically ineffective. Economic development and cultural change of anunderdeveloped country through the promotion and rise of the middle classes hasnot occurred because it is physically impossible for it to occur given thestructure of the system attack is against the acculturation or diffusionistperspective, which seems to suggest that if development fails to occur, it isbecause within the Third World there are obstacles to diffusion. He denies thatdevelopment can be introduced into such societies, and suggests that it is notpoverty that has prevented underdeveloped societies investing in their ownfuture but the net outflow of capital to the West. In short, the Third Worldhas subsidized the development of the First.            The third worldwas and still a study case of many socialists and economists, who have beentrying to make suggestions for development regard and regardless to theinternal and external effects.

Some of them may blame the internal reasons andreach to the level of social life in certain countries. But the Modernizationtheory have not been effective to the third world because it didn’t take underconsiderations the population, living arrangements, labor, technologicaldevelopment, diversity and even rationality that different society may have. Asfor the dependency theory it it applies it-self naturally with the existence ofthe capitalist ideas among not just developedcountries but also between the rich elites of the developing countries. Which prevented the implication of Modernization theory, because it is avicious circle of developing countries investing in developing countries underthe idea of helping while taking advantage of any resources a country couldhave. Which will make the developing countries employ these resources in theseinvestment and stay at the same place or even retreat.

As for the Palestiniansituation which is part of the third world, alongside with that is the deprivationof our own resources, so it is a closed case for now. Developing Palestineneeds the resources, the independency, choosing the right economic system tofollow and many other supporting systems.