• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Given the fact that Third World countries are underdeveloped (or developing); the causes that led to their underdevelopment are controversial. According to dependency theorists; capital accumulation in the Core had led to the underdevelopment

Extracts from this document...

Introduction

Economic Development in Third World Countries Economic Development in Third World Countries Outline Thesis: Despite the difficulty in tracing the, main causes of underdevelopment of LDCs, I believe that the international dependency theory explains most this recession. I. Introduction II. International Dependency Theory: Streams of thought: a) The Neocolonial Dependence Model b) The False Paradigm Model c) The Dualistic Development Thesis III. Examples of Third World Countries that are affected by wealthy states Intervention: a) Argentina b) Cuba IV. The Japanese example of development after massive destruction in World War II and how it is affected by foreign intervention V. Conclusion Economic Development in Third World Countries Given the fact that Third World countries are underdeveloped (or developing); the causes that led to their underdevelopment are controversial. According to dependency theorists; capital accumulation in the Core had led to the underdevelopment of the periphery. On the other hand, other theories claim that the actual problem of underdevelopment is due to the wrong policies and lack of productivity of the less developed countries (LDCs). Although it might seem difficult to trace the actual cause of underdevelopment of the LDCs, I believe that the main reason behind their lagging behind in terms of economic development lies mainly in the dependency theorists' claim of the causes of underdevelopment of the Third World Countries. ...read more.

Middle

This concept involves four elements : first the situation where there are those who are superior ; those who are inferior who "can coexist in a given space". Such involve the "coexistence of modern and traditional methods of production in urban and rural sectors" as well as the presence of rich highly educated elite members of society with "masses of illiterate poor people". The second point implies the tendency of the former coexistence between superior and inferior structures to stay for long and not to change. This is proved by the rising international inequalities. As for the third element it notes that the coexistence of superiority and inferiority are even liable to increase and as stated by Todaro , the productivity gap between workers in developed countries and their counterparts in most LDCs seem to widen with each passing year." 12 The third element states that the superior elements are affecting the inferior elements negatively; in which they are not pulling them up but instead are increasing their underdevelopment by trickling down to them or pushing them down more. 13 Even if this trickling down is because of the political hegemony of the inferiors' governments causing the people to not trust their countries and thus do not invest there, it is still affected more. ...read more.

Conclusion

Thus even wise policies and the hard working force of the Japanese needed foreign aid especially from the U.S. to maintain the development of this developed nation. In conclusion, despite the claim of alternative theories that LDCs are responsible for their backwardness, either because of rigidity of their governments' economic and political olicies, or lack of liberation in srengthening international trade and foreign investment, the capital accumulation in the Core affects their recession. This is because as shown in the former examples, development of an inferior state cannot happen without aid from wealthy countries, and in order to maintain any reached development, wealthy countries are still needed even if with rigid ties to maintain trade exchange and profit. End Notes 1. (Michael P. Todaro, 91 ,2000) 2. (Michael P. Todaro, 91 ,2000) 3. (Michael P. Todaro, 91 ,2000) 4. (Michael P. Todaro, 91 ,2000) 5. (Michael P. Todaro, 91 ,2000) 6. (Michael P. Todaro, 91 ,2000) 7. (Michael P. Todaro, 91,2000) 8. (Michael P. Todaro, 92 ,2000) 9. (Michael P. Todaro, 92 ,2000) 10. (Michael P. Todaro, 93 ,2000) 11. (Michael P. Todaro, 93 ,2000) 12. (Michael P. Todaro, 94 ,2000) 13. (Michael P. Todaro, 94 ,2000) 14. (Michael P. Todaro, 144 ,2000) 15. (Michael P. Todaro, 144 ,2000) 16. (Michael P. Todaro, 145 ,2000) 17. (Michael P. Todaro, 107 ,2000) 18. (Michael P. Todaro, 108 ,2000) 19. (Michael P. Todaro, 108 ,2000) 20. ( William R. Keylor,430,2001) 21. ( William R. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Outline the debate about whether 'export-led growth' is better or worse than 'import substituting ...

    industry and a neglect of agriculture in recent decades, which has further fuelled the slow growth of income from primary commodities8. The crucial difference between import substitution industrialisation and export-led strategies is that the first is 'inward-looking' identifying a strong role for the state, and the second is 'outward-looking', relying

  2. Explain the evolution and characteristics of the debt problems of LDCs. In the light ...

    The formation of OPEC in the 1970's is also seen as key in the mounting debt crisis of LDCs. In 1973, the US$ fell in value, and with it OPEC countries experienced a fall in revenues from the Eurodollar market. In response, they limited output, quadrupling oil prices virtually overnight.

  1. This article review is done for the course of Trends in Global Marketing Strategies. ...

    3. The role of multinational enterprises (MNEs) is increasing. This is because it is in the interest of domestic domicile firms to use the created assets and to generate new assets in a foreign country, or to acquire assets e.g. by acquisition or alliance, by using foreign domiciled firms.

  2. In this report, I will be addressing the implications of the European monetary union ...

    Less scrupulous retailers would use the introduction of the Euro to round-up prices, just as they did during decimalization 30 years ago. How This Effects Zeus Being part of the EMU will benefit a small company like Zeus, (see advantages above)

  1. By the mid nineteenth century, Britain had been the world's strongest economic power for ...

    risk averting, whilst proclaiming German entrepreneurs to be innovative and risk taking is to base it not on fact but "on purely impressionistic foundations, or on generalisations from individual examples".12 A third indictment of the British entrepreneur is that they overinvested in the old staple industries, such as the iron and steel industries, shipping and textiles.

  2. Free essay

    does uk housing market warrant government intervention

    410.5 Gross value added, 2005 (� billion) 166.3 Gross value added per head index, 2005 (UK=100) 115.3 Total business sites5, March 2004 (thousands) 390.9 Average dwelling price1, 2005 (� thousands) 234 Motor cars currently licensed,1,6 2005 (thousands) 4,344 Fatal and serious accidents on roads,1 2004 (rates per 100,000 population)

  1. How the process of Globalisation might have affected the position of labour in industrialized ...

    "just as some firms lose out because they are not sufficiently competitive. That this is so is not a new development, of course. Some skills inevitably become obsolete. That is where social safety nets come in, to help those affected get financial assistance, job retraining, and so on.

  2. Infation HSC Notes

    The slower economic growth and incomes growth reduced the ability of businesses to increase consumer prices, while lower demand for labour and materials reduced pressures on business costs. By the 2009, the underlying and headline inflation are returned back into the RBA's target range.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work