The neo-Marxist dependency theory rejects the view that the people of LDCs are responsible for the failure of their societies to develop;, MNCs do not invest in LDCs because they want to kick-start their economies. Their motive is primarily profit.
Argues 3 stages to how the west have mangened to exploit and maintain power over rest….
1.Savery 2. Colonialism 3. Neo-colonism
Frank also argued that lack of development is because Western nations have deliberately under-developed them
Frank argues that there exists a global system of capitalism in which core nations such as the USA and UK exploit what Frank calls the peripheral nations or LDCs.
periphery is kept in a state of dependency because the developed world requires cheap raw materials and labour.
Frank argued that this relationship of exploitation and dependency occurred historically through slavery and colonialism, and continues today through Western dominance of the international trading system
Frank argued that the trade in slavery resulted in tremendous profits for both slave-traders and plantation owners in the 18th century. This led to a superaccumulation of capital which was invested in Britain’s industrial revolution and consequently helped kick-start industrial development in the UK.
Due to colonialism many LDCs find it difficult to achieve full economic independence because many are overdependent on either one or two primary products. (Ethopia dependent on coffe for 75% of national earnings)
Western countries set tariffs and quotas which tax or limit LDC products entering the First World.
Not only this but through colonilism divisions and conflicts where created (RWANDA) that still have current effects
The biggest problem neo Marxists like frank illustrated was still continuing today.
They call it neo colonisism not post to illustrate the fact its still continuing just in a different manner.
Hayterargue that traditional colonialism gave way to a new form: neo-colonialism. At the forefront of this type of exploitation are the multinational companies (MNCs). In search for profit, companies exploit LDCs for cheap labour, cheap raw materials
These multinational companies (MNCs) imported raw materials from the LDCs for an extreamey low price,…