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Development of Underdevelopment

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Development of Underdevelopment

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Ques on- What is the development of underdevelopment?

Introduc on
The concept of the "development of underdevelopment," introduced by Andre Gunder Frank, is a
cornerstone of dependency theory. It challenges the tradi onal linear models of development,
which o en present underdevelopment as a natural, early stage of economic and social progress.
Instead, Frank argues that underdevelopment is ac vely produced through the global historical
processes of capitalism. This no on posits that the wealth of developed na ons is intrinsically
linked to the impoverishment of underdeveloped ones. The exploita on of resources and labor in
peripheral regions (e.g., La n America, Africa) facilitates the prosperity of core countries (e.g.,
Europe, the United States), making underdevelopment and development two sides of the same
historical process.

Theore cal Framework


Frank's thesis is grounded in a historical-materialist perspec ve, emphasizing the role of global
capitalism in shaping inequali es. The development of underdevelopment is not an isolated
phenomenon but the result of centuries-long integra on of peripheral regions into the global
capitalist economy, where their roles were systema cally subordinated. This theory rests on three
fundamental pillars:
1. Historical Integra on into Global Capitalism
According to Frank, underdevelopment is not pre-modern or feudal; instead, it is the
historical outcome of integra on into the capitalist system. Peripheral regions were
incorporated into the global economy during the colonial era, serving as suppliers of raw
materials and cheap labor to enrich the metropoles (developed na ons). This rela onship
was not mutually beneficial but exploita ve. For instance, the wealth generated from La n
America’s silver mines during the Spanish conquest primarily fueled European development,
leaving the colonies dependent and impoverished.
Example: In La n America, the colonial economy was structured around the extrac on of
silver, gold, and other commodi es for export. These ac vi es did not create sustainable
development within the colonies. Instead, they entrenched dependency on European
powers, which controlled trade routes and markets.
2. Surplus Extrac on and Unequal Exchange
A central mechanism of underdevelopment is the con nuous extrac on of surplus value from
the periphery by the core. Surplus extrac on refers to the profits, resources, and labor
appropriated from underdeveloped na ons through unfair trade agreements, foreign
investments, and exploita ve labor systems. This economic drain consolidates wealth in
developed countries while preven ng capital accumula on in the periphery.
Example: The planta on economies in Africa and the Caribbean during colonial mes were
designed to produce commodi es such as sugar, co on, and cocoa for export. These raw
materials were sold at low prices, while industrial goods from Europe were imported at high
costs, ensuring a perpetual trade imbalance that hindered industrializa on in the colonies.
3. Structural Dependency
Frank emphasizes that underdevelopment is perpetuated through structural dependency.
Peripheral economies rely heavily on the core for technology, capital, and markets, leaving
them vulnerable to external shocks and incapable of autonomous growth. This structural
reliance manifests in the lack of diversifica on in peripheral economies, which remain
dependent on expor ng primary goods while impor ng industrial and technological
products.
Example: Post-colonial Africa provides a clear illustra on of structural dependency. Countries
like Ghana and Nigeria export raw materials such as cocoa and oil, while impor ng processed
goods from Europe. This dependency, rooted in colonial trade pa erns, prevents the
development of local industries and locks African na ons into a cycle of underdevelopment.

Mechanisms of Underdevelopment
Frank iden fies several mechanisms that produce and sustain underdevelopment:
 Colonial Legacy: Colonial powers designed the economies of their colonies to serve the
metropole’s needs, o en at the expense of local development.
 Economic Polariza on: Development and underdevelopment are interconnected; the
prosperity of one region (the core) directly contributes to the impoverishment of another
(the periphery).
 Export-Oriented Growth: Peripheral countries focus on expor ng raw materials and
commodi es, which leaves them vulnerable to price fluctua ons and dependent on core
markets.
 Investment Pa erns: Foreign investments in peripheral regions priori ze resource extrac on
and profit repatria on rather than building local industries.

Examples from History


1. Africa:- During and a er colonialism, African na ons were integrated into global capitalism as
exporters of primary commodi es like minerals and agricultural products. For example,
Congo's economy under Belgian rule focused on mining copper and rubber for European
industries. Post-independence, these economies remained reliant on expor ng raw materials
while impor ng finished goods, perpetua ng dependency and underdevelopment.
2. Asia:- In India, Bri sh colonial policies redirected local industries to serve imperial needs. The
tex le industry, once a thriving sector, was deliberately undermined by Bri sh imports,
turning India into a supplier of raw co on while Bri sh factories produced finished tex les.

Assessment of Frank’s Theory


Strengths:
1. Historical Insight: Frank’s theory provides a compelling historical analysis of how colonialism
and capitalism created and sustained global inequali es.
2. Structural Understanding: It highlights the systemic barriers that prevent underdeveloped
na ons from achieving sustainable growth.
3. Cri que of Tradi onal Models: By rejec ng moderniza on theory’s assump on of a universal
path to development, Frank offers a more nuanced understanding of global dynamics.

Cri ques of Frank’s Thesis


 Oversimplifica on: Cri cs argue that Frank’s model reduces complex social and historical
phenomena to a binary core-periphery framework, neglec ng local factors such as
governance and cultural diversity.
 Possibility of Development within Dependency: Scholars like Fernando Henrique Cardoso
propose the idea of "associated dependent development," where industrial growth can occur
in peripheral na ons despite structural dependency, albeit in distorted forms, as seen in
Brazil’s industrializa on.
 Underes ma on of Agency: Frank’s emphasis on external forces is cri cized for downplaying
the role of internal policies, leadership, and grassroots movements in shaping development
trajectories.

Was and Is There a Development of Underdevelopment?


Yes, there was and con nues to be a development of underdevelopment. Historical evidence shows
how colonial powers structured peripheral economies for resource extrac on, leaving las ng
legacies of inequality. In the modern era, neo-colonial prac ces perpetuate these dynamics through
mechanisms like debt dependency, trade imbalances, and mul na onal corporate control
Modern Example: Countries in Africa, such as Ghana, rely heavily on expor ng raw materials like
gold and cocoa while impor ng expensive industrial goods. This trade imbalance mirrors the
colonial era, where local economies were shaped to serve external interests

Conclusion
The concept of the "development of underdevelopment" provides a powerful cri que of the global
capitalist system and its role in perpetua ng inequali es between na ons. By demonstra ng how
historical exploita on, surplus extrac on, and structural dependency create and sustain
underdevelopment, Frank shi s the blame from internal deficiencies to external systemic forces.
Understanding this dynamic offers valuable insights into the challenges facing underdeveloped
na ons and emphasizes the need for transforma ve strategies that break free from dependency.

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