Assess critically A. G. Frank’s ‘Theory of Development of Underdevelopment’
Section: B.
Sociology Paper 2023 Analysis.
Relevant for Paper-1 : Unit 10 : social changes in modern society
Question- 7 (C): Assess critically A. G. Frank’s ‘Theory of Development of Underdevelopment’ (10 Marks)
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Introduction: Briefly give background of A . G. FRANK. Main Body: Key points of A.G. Frank’s theory of development of underdevelopment, Critique of the theory. Conclusion: Relevance of theory. |
Introduction
The “dependency theory” or “theory of development of underdevelopment” associated with Andre Gunder Frank is an approach to understanding the economic development (or lack thereof) of nations. Frank was a heterodox economist and sociologist who argued that the global economic system is characterized by a center-periphery structure, where a small group of developed countries (the center) exploits and dominates a larger group of underdeveloped countries (the periphery).
Main Body
Key points of A.G. Frank’s theory of development of underdevelopment:
- Historical Development: Frank emphasized historical processes and argued that underdevelopment is not a stage that countries go through on their way to development, but rather a result of historical processes of exploitation and unequal exchange.
- Center-Periphery Structure: The core concept in Frank’s theory is the idea of a center-periphery structure. The center refers to the developed countries, while the periphery refers to the underdeveloped countries. The relationship between the center and the periphery is characterized by exploitation and dependency.
- Unequal Exchange: Frank argued that the international trade system is inherently exploitative, leading to the transfer of resources from the periphery to the center. He believed that the terms of trade are biased against the periphery, resulting in a net flow of wealth from less developed to more developed countries.
- Capitalist World System: Frank viewed the global economy as a capitalist world system where the development of some countries is dependent on the underdevelopment of others. He rejected the idea that underdevelopment is a transitional phase and instead saw it as a structural aspect of the world system.
- Imperialism and Dependency: Frank drew on Marxist concepts of imperialism and argued that the development of the center is contingent on the underdevelopment and dependency of the periphery. The center exploits the periphery not only through economic means but also through political and social mechanisms.
- Critique of Modernization Theory: Frank’s theory was a critique of the prevailing modernization theory, which suggested that underdeveloped countries could achieve development by following the path of the developed nations. Frank argued that this perspective ignored the historical and structural factors that perpetuated underdevelopment.
Critique of the Theory
- Frank’s theory has been criticized on the ground that the theory is overly deterministic and simplistic. It tends to paint a picture of a world neatly divided into exploitative rich countries and exploited poor countries, ignoring the complexities and nuances of global economic relationships.
- Liberals argue that the core needs the periphery to grow and industrialize as a source of new investment and new market.
- Samir Amin in his work titled, Unequal Development: An Essay on the Social Formations of Peripheral Capitalism (1976), observes that historical analysis of radical dependency theory represented by Frank is too generalized.
- Frank’s theory fails to show unevenness of the development of the peripheral states, ranging from the backwardness of Ethiopia to the growing industries of Asian Tigers – a point also made by Cardoso.
- The theory has been criticised for its lack of empirical support. Many countries that were once considered peripheral, such as South Korea, Taiwan, and Singapore, have successfully developed their economies without severing ties with the core countries.
- The theory underestimates the role of internal factors in underdevelopment. It largely ignores the impact of domestic policies, corruption, political instability, and cultural factors on the economic performance of underdeveloped countries.
- Lastly, the theory has been criticised for its pessimistic view of the prospects for underdeveloped countries. It suggests that these countries are trapped in a cycle of underdevelopment with no clear path to development.
Conclusion
It’s important to note that while Frank’s ideas were influential, there has been ongoing debate and criticism of dependency theory. Some critics argue that it oversimplifies the complexities of global economic relations and that it doesn’t adequately address internal factors within countries that contribute to underdevelopment. Despite criticisms, dependency theory has played a significant role in shaping discussions about global inequality and development.
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