SOSC 188

1

• SOSC 188
• Lecture 9
• The New Dependency (I)
• Dependent Development

2

• The Old-fashioned Dependency Theory -
  Neo-Colonialism
• Triple Alliance
• Dependent Development

3
The Old-fashioned Dependency Theory -
Neo-Colonialism

• Little change after political independence -
• still one-crop economy,
• still little industrialization,
• still dependent state
• Satellite status prevents autonomous development
• more foreign control, less development
• less foreign control, more development

4
Triple Alliance

• Three new actors of development
• (1) Transnationals
• (2) nation-state
• (3) domestic capitalists

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(1) Transnational corporations

• Investments/loyalty not tied to a particular
  nation-state
• Promote industrialization across the globe
• Provide capital and technology

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(2) Domestic Capital

• Market to big be monopolized by the foreigners
• Wait for golden opportunity (war)
• Provide management and local market

7
(3) The State as a Promoter

• Infrastructure building (airports, freeways,
  harbors, high-tech zones)
• social spending (education, health care)
• provide incentives (taxes, loans, subsidizes)
• Regulations (tariffs to protect)
• Provide preferential treatments

8
Triple Alliance Conflict

• The triple alliance Partnership amidst
  contradictions
• Transnationals Dont want to share high-tech
• Nation-state Promote nationalism
• Domestic capitalists Want automony

9
Dependent Development

• Still foreign control on technology local
  industry cant catch up, limited development
• Widen income inequality benefits not share by
  the poor
• Political implications authoritarianism to
  suppress dissents
• Fragile partnership