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Dependency theory or dependencia theory

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Presentation on theme: "Dependency theory or dependencia theory"— Presentation transcript:

1 Dependency theory or dependencia theory
is a body of social science theories predicated on the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. It is a central contention of dependency theory that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system." Dependency Theory developed in the late 1950s under the guidance of the Director of the United Nations Economic Commission for Latin America, Raul Prebisch.

2 The theory arose around 1970 as a reaction to modernisation theory, an earlier theory of development which held that all societies progress through similar stages of development, that today's underdeveloped areas are thus in a similar situation to that of today's developed areas at some time in the past, and that therefore the task in helping the underdeveloped areas out of poverty is to accelerate them along this supposed common path of development, by various means such as investment, technology transfers, and closer Dependency theory was originally proposed by Sandra Ball-Rokeach and Melvin DeFleur (1976). 

3 integration into the world market
integration into the world market. Dependency theory rejected this view, arguing that underdeveloped countries are not merely primitive versions of developed countries, but have unique features and structures of their own; and, importantly, are in the situation of being the weaker members in a world market economy, whereas the developed nations were never in an analogous position; they never had to exist in relation to a bloc of more powerful and economically advanced countries than themselves. Dependency theorists argued, in opposition to free market economists and modernization theorists, that underdeveloped countries needed to reduce their connectedness with the world market so that they can pursue a path more in keeping with their own needs, less dictated by external pressures

4 Most dependency theorists regard international capitalism as the motive force behind dependency relationships. Andre Gunder Frank, one of the earliest dependency theorists, is quite clear on this point: ...historical research demonstrates that contemporary underdevelopment is in large part the historical product of past and continuing eonomic and other relations between the satellite underdeveloped and the now developed metropolitan countries. Furthermore, these relations are an essential part of the capitalist system on a world scale as a whole.  (Berlin, February 24, 1929 – Luxembourg, April 23, 2005) was a German-American economic historian and sociologist who promoted "dependency theory" after 1970 and "World Systems Theory" after 1984.

5 Dept trap It's when financing is provided (usually for relief or foreign aid) to bring people out of poverty but, inevitable are trapped from conditions pertaining to the loan agreement.

6 How to avoid debt-trap?   Little By Little The least painful way to plan for the holiday is to put a little bit aside each month all year round. Get your bank to set up a standing instruction that puts 10 to 20 percent of your salary into a saving account. One it’s safe in another account, the temptation to spend it will be less Limit Your Plastic Credit cards can be extremely useful for managing short-term debts as you are able to borrow money interest-free for some weeks – as long as you pay before the due date! However, it’s very easy to overspend when the shops are so nicely decorated and everyone is excited about the upcoming holiday. Remind total expenses each time whip out your card – or leave it at home and pay with a debit card!

7 Know your needs from your want Festive spending often includes buying new sofas, carpets, and curtains. While any shops offer discounts on furnishing just before the holiday, borrowing money to buy items that don’t need to be changed adds to your financial burden – so think twice! offers of zero percent installments where you pay small amounts like USD 10 a month don’t look to bad. But if you have three or four of those to pay off every month it adds up to a big chunk of your income. Keep a list of estimated expenses against your salary to see what you can afford.

8 Count Long-term Costs Personal loans may seem like a good answer – however; do consider that some banks charge three percent a month. As credit cards charge 18 percent per annum, this is double the rate credit card companies charge. When calculating how much your loan costs, don’t look at the amount your pay off each month, instead look at how it adds up over time. In the preface of The Theory of Money and Credit, Ludwig von Mises wrote: "No very deep knowledge of economics is usually needed for grasping the immediate effects of a measure; but the task of economics is to foretell the remoter effects, and so to allow us to avoid such acts as attempts to remedy a present ill by sowing the seeds of a much greater ill for the future.

9 Migration, Migratory behavior, or Migratory may refer to:
- the movement of persons from one country or locality to another a movement of atoms, ions, or molecules, such as the motion of ions in solution under the influence of electric fields the periodic passage of groups of animals (especially birds or fishes) from one region to another for feeding or breeding mi·gra·tion  (m -gr sh n) n. 1. The act or an instance of migrating. 2. A group migrating together. 3. Chemistry & Physics a. The movement of one atom or more from one position to another within a molecule. b. The movement of ions between electrodes during electrolysis. The movement of ions between electrodes during electrolysis.

10 Migration theory The migration theory is the belief that during the ice age people from the areas of mongolia, china, russia, etc...migrated to the northeast and traveled over the land bridge of the Bering Strait (the land bridge being exposed because the water levels had dropped due to a ton of water being frozen) and proceeded to migrate down into Canada and further south into North America, Mexico and then to South America. They did all of this in search of a warmer climate and new food sources, and that is a theory on how the Native Americans, Aztecs, Incans, Mayans, Olmecs, etc...all came to be in the North and South America's.

11 Why? People move for different reasons. These differences affect the overall migration process. The conditions under which a migrant enters a receiver population can have broad implications for all parties involved. The expression migration experience refers to the fact that different causes for migration will produce different outcomes observable from a sociological perspective. For example, a person who moves within a nation will not have the same migration experience as a political refugee. In most cases, refugees need special services from the receiver population such as emergency shelter, food, and legal aid. The psychological trauma of fleeing their homeland and leaving family members behind can also complicate refugees' adjustment to their new environment. Considering that a migrant can be a slave, refugee, or job-seeker, or have some other reason for moving, no single theory can provide a comprehensive explanation for the migration process.

12 Although a comprehensive theory is unattainable, it remains a crucial task of demographers to explain why people migrate. Theories of migration are important because they can help us understand population movements within their wider political and economic contexts. For example, if outmigration from Third World nations is shown to be a result of economic problems caused by the global economy, then such migration could be managed with better international economic agreements instead of restrictive immigration acts. Indeed, rather than slowing Mexican in-migration to the United States, termination of the bracero program actually increased the amount of illegal immigration because it exacerbated Mexican poverty.

13 Culture of Poverty The culture of poverty concept was developed in the USA during the 1960s primarily through the best-selling ethnographic realist publications of the cultural anthropologist Oscar Lewis  (born Lefkowitz, December 25, 1914, New York City- died December 16, 1970) was an American anthropologist who is best known for his vivid depictions of the lives of slum dwellers and for postulating that there was a cross-generational culture of poverty among poor people that transcended national boundaries. The culture of poverty concept is a social theory explaining the cycle of poverty. Based on the concept that the poor have a unique value system, the culture of poverty theory suggests the poor remain in poverty because of their adaptations to the burdens of poverty.

14 In order to survive the poor have to develop their own institutions and agencies because the larger society tends to ignore and bypass them. Thus the poor come to embody a common set of   values, norms and pattern of behavior, which is different from the general culture as such.  In short the poor have a way of life - a specific subculture. Lewis found 70 traits that underlay this subculture. He classified these traits into four types:  1) Relationships between the subculture and the larger society:  People either disengage or maintain distance from the larger society. They do not belong to labor unions or political parties, go to banks or hospitals or enjoy leisure facilities of the city. They have a high mistrust of the dominant institutions of society. 

15 2) Nature of the slum community:  The slum community is characterized by poor housing and overcrowding and a minimum of organizational structure beyond the space of family. These institutions grow up mainly to meet their minimum needs. The slum economy is inward looking. It is embedded in pawning of personal goods, informal credit and use of second hand goods.  3) Nature of the family:  bilateral kinship system, unstable marriage, multifocal family. 4) Attitudes, values and personality..

16 Presented by: Mark Anthony P. Cezar , MIT
THANK YOU! Presented by: Mark Anthony P. Cezar , MIT

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