Modernization and Dependency
Dependency is a process associated with the economies of many ThirdWorld countries that is formatted in terms of external factors. Dependencyexists when a country relies on a single (or a limited few) exports thatare sold to more industrialized countries, manufactured and then resold tothe country of origin for a higher price. This means that a country'sincome from exports is continually insufficient to meet the cost of The nature of dependency theory categorizes countries into one of twotypes: dominant and dependent. Many formally colonized countries (such asIndia) were organized along this type of economic structure. The primarystate was automatically the imperialist overseer and the dependent statewas the colony. Single export economies were also common within thecolonial network (consider coffee from Brazil or sugar from the Caribbean). Dependent states tend toward a low per capita GNP as direct result oftheir dependency. "The dependent states supply cheap mineral
These functions orient the economies of the dependent states towardthe outside: money, goods, and services do flow into dependent states, butthe allocation of these resources are determined by the economic interestsof the dominant states, and not by the economic interests of the dependentstate" (Ferraro Internet source). Politically,these are countries without a clear sense of national priorities, oftendiverting resources to the dominant state that are in short supply to thedependent state. A case in point is found in Mexico where the people of the earlynineteen hundreds were stratified into the agrarian peasantry and thelandowners (Haciendos). The political structure of military rule is a positive element in theprocess of modernization, which makes Latin American countries a primeexample of how this might be accomplished - once economic dependency hasbeen broken. The incorporation of technology into thisprocess is seen as "critical" in order to "stimulate production and movethe economies away from mono-culture crops and primary-product exports" (Derouken and Heo 475). Economic diversification is necessary in orderto decrease dependence, while international commodity agreements andinternal measures to increase investment are thought to be achieved by astrong central government. The last twodecades have seen the introduction of economic reform as well as aliberalization of foreign investment regulations. The economic stability of Mexico decreased, however, asthe economy of the United States stabilized and increased. These are countries that are exploited for the purpose of providingspecific export products and, or, cheap labor to the detriment of thenative population and the benefit of the dominant state. The modernization theory, as it is applied to third world countries,implies that the distinction of 'third world' is the same as'underdeveloped' as a result of internal political and economic factors. In Uruguay and Argentina, for example, the military providedskill and funding for increased stability of the infrastructure byincreasing communication abilities and educational opportunities. This wasreflected in Mexico as a decrease in employment and increase in unrestwithin the majority of the population that mirrored economic conditions inthe United States. Private (or elitist) interests take precedence overnational interests. Economic dependency is a result of direct intervention andmanipulation of the economic structure in poorer countries. Mexico, although originally a colony of Spain,became a dependent state to the United States after independence.
Common topics in this essay:
Haciendos Mexico,
Third World,
Ferraro Internet,
Caribbean Dependent,
Uruguay Argentina,
Derouken Heo,
Latin American,
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economic structure,
economic dependency,
foreign investment,
third world countries,
cheap labor,
world countries,
third world,
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