Third world countries particularly those in the African region have remained largely underdeveloped as compared to first world nations. The dependency theory is one approach that has been put forward to try and account for the underdevelopment of these countries. Do Santos (1971) defined it as a historical condition shaping particular structures of the world economy whereby it favors some countries whilst disadvantaging others, it further inhibits developmental capacities of subordinate economies. This essay will scrutinize the theory by providing sufficient evidence such as the fact that third world countries provide raw materials cheaply to core countries who then partake in beneficiation processes and enrich themselves. It will also be argued that contrary to the dependency theory, several internal factors such as corruption and rampant prodigality have also contributed significantly to underdevelopment but not to the same effect. As the essay will show, dependency theory has had a stronger impact on third world underdevelopment.
The dependency theory suggests that the peripheral countries supply the core with raw materials particularly minerals at cheap prices. At the core, these materials undergo value addition and beneficiation resulting in them tripling in value or even more. For example a carat of rough diamond is exported from Zimbabwe at about US$2500 and yet a cut and processed diamond from developed countries is imported back into the country at about US$18 000 per carat. The developed countries consequently enrich themselves as they are running profitable industries. In comparison, Zimbabwe a third world country adorned with mineral wealth is earning a remarkably lot less for it's wealth.
Similarly, third world countries provide an excellent market for finished goods from developed countries. In light of the fact that developing countries lack the productive capacity and technical know-how to manufacture most goods , developed countries exploit this by using these countries as a market for their goods. Products like lithium batteries and high end jewelry are exported particularly to Africa and have little or no competition. This therefore means that the core earns a substantial market and a balance of payment surplus. Third world countries are driven into further poverty and underdevelopment in this scenario. This comes as budding local firms are outcompeted by foreign products leaving most entrepreneurs out of business and discouraged. Moreover, foreign currency and capital reserves which could have been channeled towards development are depleted. This has been the situation with countries like Zimbabwe which has consistently had a balance of payment deficit and foreign currency scarcity for the last 5years.
Dependency theory is also attributed to the immense loss of productive manpower in third world countries. Both skilled and non skilled workforce migrate to developing countries.Dube (1988)contends that superior remuneration structures have evoked the brain drain. In the same regard tertiary institutions teach programmes and skills that graduates cannot possibly utilize locally due to lack of industry or markets for their skills thus migration is their only option. This leaves an elderly dependent demography which cannot carry the nation forward. The US$657,7 million dollar diaspora remittances that Zimbabwe received in 2019 is positive but cannot counter balance the development lag. In addition, developing countries now have an influx of labour supply greater than what the labour market demands. With supply exceeding demand this pushes down the price of labour henceforth developing countries benefit from cheap labour resulting in productive efficiency. This works on favor of the core or central countries to the detriment of third world nations.
The dependency theory also sufficiently accounts for the underdevelopment of third world countries particularly when the aspect of sanctions is concerned. Developed countries possess the political and economic power and influence to institute barns, restrictions and blacklists on certain entities and individuals of countries if their demands are not met. In the case of Zimbabwe, having noted that the white minority was owning more than 70% of arable land, the state introduced the land reform program in the late 1990s.The aim was to introduce equitable distribution of resources among citizens, a decision which did not prove popular among the developed world. Since this was not in line with what the British government and allies had directed ,it was viewed as a threat and sanctions were introduced to try and establish control over Zimbabwe and keep the state in line. The British possess the power and influence internationally hence they were able to severely cripple and retard the Zimbabwean economy for the last two decades as a retaliation measure.
In affirmation of the notion that dependency theory has had a firm hand in the underdevelopment of third world countries, exogenous reasons like colonialism have played a major role. The colonialist system of governance relied on political and economic dominance. The main priority was to replenish their home industries with raw materials hence developing there colonies was of little importance. Economic activities and decision making were restricted to the colonialists hence indigenous entrepreneurship was crippled. Any idea not directly engineered by the first world countries was seen as a threat and was shot down leading to slow development and subjugation for the greater part of the mid 1900s.In the same regard ,the education system of countries of apartheid south Africa and pre independent Zimbabwe stressed emphasis on the superiority of some races over others and did little to empower marginalized and oppressed races so that they could become actively involved in development. This prompted third world countries to rely on their colonisers for all economic and political activities and did not have an opportunity to foster any meaningful change until Independence.
Following the end of the colonialism era in third world regions like Africa, countries had political sovereignty. This however did not suffice for them to cease being dependent on their former colonisers. They still supply them with raw materials as they lack the ability and capital to process them into finished goods. The third world countries also still use their former colonies as sources for finished goods hence dependency was and is still rampant. This phenomenon has been termed neocolonialism and Nkrumah(1995) subscribed to the school of thought that African states were more dependent than before. Dependency theory assumes that decolonization was a smoke screen to conceal the true intentions of first world countries. It is contended that they came to the realization that their former colonies would still heavily trade with them economically. Thereby by attaining economic dominance over third world countries through trade ,the developed countries like Britain and the United States of America were able to purchase political dominance as well.Consequently,they could manipulate and manage the political a d economic landscape of countries particularly in Africa without receiving public or international scrutiny.
A large proportion of government expenditure in third world nations is financed through donor relief. As the dependency theory suggests, countries became used to the concept of aid that dependency syndrome occurred. Aid however is a temporary fix and cannot alleviate poverty indefinitely. Third world governments have become oblivious to this fact and have counted on donors to continue aiding instead of the state crafting long lasting solutions. Benjamin W Mkapa has likened foreign aid to drug addiction stating that it's now rooted in African society that foreign aid will one way or another help them sustain a living to the extent that they no longer possess the guise to fend for themselves. Apart from aid being motivated by the need to alleviate poverty, it is also strategic with political motives. Some sponsoring countries use the opportunity to gain political influence through providing aid while others may corrupt sitting government officials to influence policy making to their advantage. This benefits the country bringing the aid while not fostering lasting solutions. Thereby communities will still require aid and remain dependent indefinitely. Donor agencies also tend to sponsor opposition political parties which can cause political discourse and or instability which hinders development.
However in the modern error, many scholars do don't believe that dependency theory can be attributed to the third world development lag. It has been proposed that internal factors have also largely been the main cause for underdevelopment, stemming from practices that are counter productive as will be discussed in this essay
Perhaps the most frequently occurring phenomenon in third world economies that has lead to underdevelopment is corruption. African leaders have been accused and often caught in the act of looting state resources. This includes smuggling of mineral produce and valuable animal products like ivory to Asian markets. Global financial integrity postulates that the continent loses US$25 billion through illicit flows annually. All this could be channeled towards other noble causes but it is squandered by a few corrupt leaders and policy makers. Corruption depletes natural resource bases at the same time hemorrhaging desperately needed funds from education and healthcare .This debilitates the economy and disadvantages the majority as they are left iliterate,poor and without healthcare ergo highly susceptible to illnesses and diseases. Foreign and domestic aid in the form of food aid, farming inputs and monetary aid is diverted before reaching intended targets. Biased tender practices are rampant with tenders often awarded to unworthy individual in it for the money and they produce inflated and overstated priced prejudicing the state of millions of dollars. In light of this it is understandable why the argument that third world underdevelopment is caused internally would be valid.
The refusal by African heads of state to step down after their presidential terms have ended has also resulted in underdevelopment. Many of these leaders have had very long reigns without necessarily being productive in their policies. This has lead to emergence of opposition parties who are willing to do anything to dethrone these government at any cost including sabotage and or violence. This upsets the political stability and socio economic fortunes. In addition, it derails concentration on good governance and governments end up focusing on egocentric issues and abandon provision of healthcare. These egocentric practices include media whitewashing which is frustrating to opposition figures and could lead to civil unrest.
Third world countries have been fragile in terms of the socio political environment. By casting a spotlight on African countries, it is evident that since attainment of Independence, they have struggled to remain stable. At least forty eight countries in Africa has had a civil war or civil unrest since attaining independence. These conflicts cause internal displacements and even deaths. More than 5 million people died in the Congo war. All economic aspects deteriorate in these situations and general development is brought to a hault.Contrary to popular belief, these civil wars are actually not due to ethno-linguistic fragmentation but are rather due to high levels of poverty. Governments neglecting it's people makes them feel victimized and hence they begin revolts. This brings down development immensely.
Development is centered around participation of the society and providing people with what is most needed by them. However, third world governments tend to disregard aspects that have to do with democracy. This includes rigid central planning and lack of market liberalisation.Market forces of demand and supply do not interact freely but are manipulated through price floors and price ceilings. This is unsustainable in a dynamic world and leads to business closure, hoarding, black market emergence, long queues and general decline in living standards as seen in Zimbabwe in the year 2008.A paradigm shift to democratic practices could possibly circumvent these situations but the process is occurring slowly in third world nations hence development is lagging and of cause they remain underdeveloped.
In conclusion the assertion that dependency theory is adequate in accounting for the underdevelopment of third world countries holds true because as above illustrated, dependency theory has had adverse effects like economic sanctions and effects of colonialism and neocolonialism such as heavy dependence on core countries. There have also, over the years, been situations where internal factors like corruption, civil war and disregard of democracy have hindered development but this has been to a lesser extent. Dependency theory has been the long standing causation for third world underdevelopment.
References
Global financial integrity report (2018) retrieved from www.issaafrica.org
Emmanuel Oladipo ojo (2016) underdevelopment in Africa: theories and facts
Jack Jackson, Nkocha Better, Stanley Ebitari (2016) African research review retrieved from www.afreyo.net
Chuka Enuka (2016) dependency theory and global economic in balance
Dos Santos T (1970) the structure of dependence: American economic review.
Kwame Nkurumah (1995)
Dube (1988)
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