Dependency Theory

1
Topics

• Dependency Theory
• Evolution of the Nicaraguan Legislature
• 1990 Elections

2
Dependency Theory (Recap)

• Core vs. Periphery
• Unequal Exchange
• International Capital Promotes Under-development

3
Political Implications

• Provides Revolutionary Strategy
• Explains Rise of Authoritarianism in Developing
  World

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Rise of Authoritarianism
5
Problems With Dependency

• Definition?
• Solution?
• Empirical Verification?

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Definition

• ...an historical condition which shapes a
  certain structure of the world economy such that
  it favors some countries to the detriment of
  others, and limits the development possibilities
  of the subordinate economies. --Teotonio dos
  Santos

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Openness To Trade
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Dependency Offers No Way Out
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Relatively Little Empirical Work
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Evolution of Nicaraguan Legislature
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Evolution (main periods)

• Council of State 1979 - 1984
• National Assembly - Constituent Assembly
• 1987 Constitution

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Council of State 1979-84 (Consejo de Estado)

• Original allotment gave considerable power to
  conservative groups
• Added 14 seats giving the council 47 members
  (mass organizations and military 31 seats).

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Consequences of Move

• Reversed the balance of forces
• Big business and political right withdrew from
  government

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Powers of Council of State

• Approving or amending bills
• Prepare elections act
• Requesting (through Junta) reports from
  ministries
• Could not override Juntas veto
• No budget role
• Had to act on bills within 10 days.

15
1987 Constitution (Adolescence)

• Could now override presidential veto
• Members could question and summon ministers
• Gained a role in the budgetary process

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1990 Elections

• How could the Sandinistas win when
• Negative growth for the past few years
• High rates of inflation (hyper-inflation)
• Falling wages
• Debt problems
• Contraction of Government Spending on Social
  Programs

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1990 Elections

• Why Sandinistas should have won
• Frente still had support from many sectors
• Economic conditions began to improve by 1990
• UNO had not concrete alternatives
• Nicaraguans new the US was the real culprit

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So, why did they lose?
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Maturity (1990-99)

• Military Budget
• Land Reform
• 1995 Reform

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Military Budget

• In 1988 60 of Nicaraguan budget was for Military
• In 1988 there were 80,000 troops
• In less than a year (1990-91), 28,400 members
• UNO wanted more

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Land Reform

• Decree 3
• Decree 760 (absantee law)
• Law 85 and 86
• Law 88 (provided titles)
• 80,000 families

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Land Reform (contd)

• 1991 - UNO members produced a bill to eliminate
  85 and 86
• Sandinistas walked out of assembly
• Speaker of the Assembly Alfredo César

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Land Reform (again)

• Dona Violeta vetoed act (Law 133)
• Veto came to a vote, Dona Violeta won 47-45

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Césars Legislative Coup (1992)
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Césars coup

• Delays naming officers of assembly
• Sandinistas walk out
• César convenes assembly
• Starts enacting legislation vetoed earlier
• Cour rules all laws invalid

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Implications

• Coup shows how frustrated UNO must have been
• Indicates a lack of patience on legislators part

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1995 Reforms

• Transfer fiscal power from presidency
• Prohibit nepotism
• Expand constitutional liberties
• Reduce presidential term
• Need at least 45 of vote to avoid runoff