Bring out the key arguments of the dependency approach in International Relations

The Dependency Approach in International Relations is a critical framework that emerged in the mid-20th century, primarily from the Global South.

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It critiques the global economic system, arguing that the relationship between developed (core) and developing (peripheral) countries is inherently exploitative, perpetuating underdevelopment in the periphery while enriching the core.

This approach was deeply influenced by Marxist theory, particularly by thinkers such as Raúl Prebisch, Andre Gunder Frank, Immanuel Wallerstein, and Samir Amin. Dependency theory became prominent in Latin America during the 1960s and 1970s as a response to modernization theory.

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Key Arguments of the Dependency Approach

1. Structural Inequality in the Global System

• The global economic system is organized into a core-periphery relationship:
  • Core countries (developed nations) dominate in industrial production, technology, and finance.
  • Peripheral countries (developing nations) provide raw materials, cheap labor, and markets for the core’s manufactured goods.
• This structure reinforces global inequalities, with peripheral countries remaining dependent on the core for economic growth.

2. Historical Roots of Dependency

• The dependency approach highlights the historical processes of colonialism and imperialism, which established exploitative economic relationships:
  • Colonization drained resources and stifled local industries in the periphery.
  • Post-independence, many developing countries inherited economies structured for extraction and export.

3. Unequal Terms of Trade

• The terms of trade between core and periphery are biased:
  • Developing countries export primary goods with low and volatile prices.
  • Developed countries export manufactured goods with high and stable prices.
• This imbalance leads to a drain of wealth from the periphery to the core, perpetuating underdevelopment.

4. Role of Multinational Corporations (MNCs)

• Dependency theorists argue that MNCs are instruments of core domination:
  • They control key sectors of peripheral economies.
  • Their profit-seeking behavior often undermines local development, repatriating profits to the core.

5. Limits of Modernization Theory

• Dependency theorists reject the modernization theory’s assumption that all nations progress through the same stages of development.
• They argue that development in the core is achieved at the expense of the periphery, making the modernization model unsuitable for understanding global inequality.

6. Development of Underdevelopment

• Coined by Andre Gunder Frank, this concept asserts that:
  • Peripheral countries are not “underdeveloped” but rather are actively “underdeveloped” by their integration into the global capitalist system.
  • The core exploits peripheral countries, preventing them from achieving autonomous development.

7. Need for Structural Change

• Dependency theory advocates for autonomous development in peripheral countries:
  • Reducing reliance on exports to the core.
  • Promoting import substitution industrialization (ISI) to build local industries.
  • Challenging the dominance of international financial institutions like the IMF and World Bank.

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Critiques of Dependency Approach

1. Overemphasis on External Factors: Critics argue that dependency theorists neglect the role of internal factors like governance, corruption, and policy mismanagement in underdevelopment.
2. Deterministic View: The theory often portrays peripheral countries as helpless victims of the global system, undermining their agency.
3. Inflexibility in Global Dynamics: It does not account for the rise of newly industrialized countries (e.g., South Korea, Taiwan) that have successfully transitioned from periphery to semi-periphery or core.
4. Limited Policy Recommendations: Strategies like import substitution have had mixed results, often leading to inefficiencies and economic isolation.

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Legacy and Contemporary Relevance

• Influence on Development Policy: Dependency theory shaped policies like non-alignment, South-South cooperation, and calls for a New International Economic Order (NIEO) in the 1970s.
• Postcolonial Critique: It remains a cornerstone of critiques against neoliberal globalization and its impact on the Global South.
• World-Systems Theory: The approach influenced Immanuel Wallerstein’s World-Systems Theory, which expands on the core-periphery dynamics by adding a semi-periphery.

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In summary, the dependency approach highlights the structural inequalities inherent in the global economic system and critiques the exploitative nature of core-periphery relations. While its deterministic aspects have been critiqued, its insights into global power dynamics and systemic inequalities remain relevant in understanding international relations today.