Evolution of Dependency Perspectives

Evolution of Dependency Perspectives

Dependency Theory Evolution of Dependency Perspectives

Introduction to Evolution of Dependency Perspectives

The impressive rise of the newly industrializing countries of Latin America and East Asia since the 1960s defied the bleak prognosis of dependency theorists. Both Mexico and Brazil, for example, exporters of raw materials that turned to ISI and encouraged direct foreign investment and external loans, have experienced substantial industrial growth. South Korea and Taiwan successfully implemented ISI policies and became global exporters of manufactured goods. The economic success of these nations forced a reevaluation of the central premises of dependency theory.

In the 1970s, sociologist Fernando Henrique Cardoso (now president of Brazil) addressed weaknesses in dependency theory. Cardoso asserted that developing countries could achieve substantial development despite their dependence on foreign businesses, banks, and governments for capital, technology, and trade. He believed that developing nations could defend national interests and oversee a process of steady economic growth by bargaining with foreign governments, multinational corporations, and international lending agencies.

Other scholars, such as American sociologist Peter Evans, have gone even further than Cardoso in recognizing the importance of negotiations between governments in developing countries and governments and firms from industrialized nations. These analysts believe the way nations respond to dependence on foreign capital can be as important as the dependence itself. These refinements to dependency theory suggest the promise of new approaches to the problem of development, approaches that seriously take into account the role of politics and government-level negotiations in determining economic outcomes.” (1)

Resources

Notes and References

Guide to Evolution of Dependency Perspectives

In this Section

Dependency Theory, Early Perspectives on Dependence and Evolution of Dependency Perspectives.


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