Overview
The lecture explores Dependency Theory as a critical approach to development economics, highlighting its focus on power dynamics, historical context, and the limitations of Eurocentric theories.
Eurocentrism in Economics
- Mainstream economics often treats development as a technical problem, overlooking power and inequality.
- Eurocentrism refers to theories and perspectives centered on European experiences and assumptions.
- Dependency Theory challenges Eurocentric views by theorizing from the perspective of the global South.
Core Concepts of Dependency Theory
- Dependency occurs when the development of one economy is conditioned by the expansion of another.
- The global economy is structured into "center" (developed) and "periphery" (developing) countries.
- The tradition includes Marxist, structuralist, and institutionalist approaches.
- Dependency Theory reacts against modernization and development theories from the global North.
Key Features of Dependency Theory
- Emphasizes a global historical approach, linking capitalism and colonialism to current economic structures.
- Focuses on the polarizing and uneven tendencies of capitalist development.
- Analyzes structures of production rather than just culture, education, or institutions.
- Highlights the unique constraints facing countries in the periphery, rejecting the notion that they are just "latecomers."
Mainstream vs. Dependency Approaches
- Mainstream development economics often ignores historical specifics and power dynamics.
- Dependency theorists critique the idea that all countries can follow the same path as the currently developed countries.
- Success stories like South Korea are explained differently, focusing on unique historical and geopolitical factors.
Contemporary Relevance of Dependency Theory
- Global value chains often place peripheral countries in low-value-added roles with limited technological advancement.
- Persistent global inequalities make Dependency Theory increasingly relevant for understanding current challenges.
- The tradition is regaining attention due to growing awareness of racial and colonial inequalities.
Key Terms & Definitions
- Dependency Theory — A tradition examining how peripheral economies are conditioned by the development of center economies, focusing on historical power dynamics.
- Eurocentrism — Viewing global developments primarily from a European or Western perspective.
- Periphery — Less developed countries integrated into the global economy in subordinate roles.
- Center — Developed, industrialized countries dominating the global economy.
Action Items / Next Steps
- Read: "Decolonizing Economics: An Introduction" for deeper exploration.
- Reflect on how power and history shape global economic inequalities.
- Prepare to discuss case studies contrasting mainstream and dependency perspectives.