• 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. Explain the Heckscher- Ohlin model of international trade and assess the extent to which ...

    The Heckscher-Ohlin model is based on strong assumptions that all countries are equally efficient, and that all countries use the same contribution of resources to produce a unit of any good. However, the Heckscher- Ohlin theory can't provide a complete explanation of the pattern of trade.

  2. Free essay

    does uk housing market warrant government intervention

    This implies that necessity goods have inelastic price elasticity's of demand. When applied to property it is clear that there are few viable substitutes short of living in a mobile home, there is little else one can do. The degree of necessity of housing also points toward a extremely inelastic demand curve in the overall housing market.

  1. Corruption and Globalisation - Both of them have been so pervasive in recent years. ...

    (Neelankavil, 2003) Therefore, international companies bypass countries that have a high-level of corruption. As a result, these countries lose out on valuable inflow of foreign capital. Hence the pace of globalisation is slowed down. Furthermore, there is widespread recognition of the negative consequences of bribery and corruption internationally, regionally and domestically.

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    governments have liberalised quotas, tariffs, licensing arrangements, restrictions on foreign investment and the like independently and not as part of international agreements. Although many governments have reluctantly undertaken unilateral liberalisation as part of IMF and World Bank structural adjustment programmes, the really strong and sustained liberalisers, such as Chile and

  1. Unemployment HSC Notes

    as whole since more resources must be directed toward dealing with them * Unemployment for particular groups: o High youth unemployment: a result of employers seeking higher skilled and more experienced workers. ? Higher school retention rates ? 1980s: 1/3 completed secondary school now stabilised at around 75%.

  2. Infation HSC Notes

    Despite the economic growth of the 1990s and the 2000s the inflation pressured were constrained as monetary policy was effective. Some economists suggest that the sustained rate of inflation was due to the structural changes during the 1980s and 1990s. Microeconomic reform increased the intensity of domestic and foreign completion.

  1. Globalisation of GAP

    Source - Quote from Gap's annual report of 2006 This quote highlights the problems faced in the European markets. Gap may have used their experiences and lack of success in the European market to improve their chances in other emerging markets such as Asia.

  2. This investigation will try to test the level of external debt and measure its ...

    the last couple of years, it underwent and impressive growth, consequently it is interesting to know, from a net economic point of view, how the necessity of a third world country in obtaining resources from abroad originates, which is one of the definite direct causes to the origin of the external debt and the problems that it entails.

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