The economic divide and income gap between industrial countries and developing countries has widened continually
Dependency theory is a school of thought in
contemporary social science which seeks to contribute to an understanding of
underdevelopment, an analysis of its causes, and to a lesser extent, paths
toward overcoming it. It arose in Latin America in the 1960s, became
influential in academic circles and at regional organizations, spread rapidly
to North America, Europe, and Africa, and continues to be relevant to
contemporary debate. This article examines the history of its chief concept,
describes its evolution over time, analyzes its influence, and evaluates its
validity and prospects for social science in the future. (H.R. Sonntag, 2001 )
The economic divide and income gap between
industrial countries and developing countries has widened continually .The polarisation
between North and South is more pronounced than ever the united Nations Human
development report 1997 show that the share of world trade for 48 least
developed nations representing 10% of the world population has halved in the
past two decade.
Presence
of World Bank (WB) and international monetary systems (IMF);The
International Monetary Fund (IMF) is an international organization that aims to
promote global economic growth and financial stability, encourage international
trade, and reduce poverty. The World Bank is an international organization
dedicated to providing financing, advice, and research to developing nations to
aid their economic advancement. The bank predominantly acts as an organization
that attempts to fight poverty by offering developmental assistance to middle-
and low-income countries. The International Monetary Fund (IMF) is an
organization of 189 countries, working to foster global monetary cooperation,
secure financial stability, facilitate international trade, promote high employment
and sustainable economic growth, and reduce poverty around the world. In a real
sense the money that provided by IMF and World Bank are not for alleviate
poverty to the third world countries, since they are returned with high price,
and the loans are provided on material form that does not provide a wide range
for its uses. The dependency theory suggests that in order to archive in our
economy we should not depend on loans and grants from WB and IMF, In order to
achieve in our economy.
Increasing globalisation
which appears an inevitable social condition and process has pointed out to
their interconnected nature of the world to day. Never has there been so much
flow of capital finances ,goods,people, ideas and so on some of these
interconnection had been pointed out by the economic commission for Latin
America and Caribbean in 1950s.
Existence of Political systems;
A political system is a complete set of institutions, interest groups (such as
political parties, lobby groups), the relationships between those institutions
and the political norms and rules that govern their functions (constitution,
election law). A political system is a concept in which theoretically regarded
as a way of the government makes a policy and also to make them more organized in
their administration. The political system is also another reason for third
world countries backwardness, in a sense that we practice the democracy
according to the existing ideology. For example in the early 1980’s after fall
of soviet union most of African counties were forced to adopt multipart system
so as to get aid and loans from USA. The multiparty system in other hand has
many negative indirect out comes include wars, for example in Congo it created
the endlyess war between the rebel and the government, in which the rebels are
supported by USA in a manner that while the war continue to take their mineral.
gap between the rich and the poor.
The share in the global income of the poorest 20% of the world's people has
fallen from 2.3% in 1960 and 1.4% in 1991 to a current level of 1.1% while the
ratio of income of the top 20% to that of the poorest 20% rose from 30.1 % in
1960 to 60.1% in 1991 and grew still further to a figure of 78.1% in 1994 in
other words the rich are getting richer while poor are getting poor.
Foreign investments;
Investment as the act of putting money, effort, time, etc. into something to
make a profit or get an advantage, or the money, effort, time, etc. used to do
this, To invest is to allocate money in the expectation of some benefit in the
future. Foreign investments also are another reason of why today we have so
called underdeveloped countries. The theory says that the underdeveloped
countries are not underdeveloped but they are underdeveloped due to their
relationship with developed countries. An investment is one of the
argumentative reasons of global inequalities between world countries. The
foreigners continue to get more profit on the land of third world countries by
so called foreign investments. For example mining investments, the foreigners
benefit more while the indigenous continue to live a miserable life, while
their land is so rich with mineral. So mines is one area, there are other areas
that the foreigners are benefited from Africans on so called investments
include agriculture.
Moreover,
dependency theory or foreign dependency would likely require global
coordination and agreement. Assuming such a prohibition could be achieved,
poor, undeveloped nations would have to be banned from engaging in any sort of incoming
economic exchanges with more powerful nations. In other words, they could sell
their resources to developed nations because this would, in theory, bolster
their economies. However, they would not be able to purchase goods from
wealthier countries. As the global economy grows, the issue becomes more
pressing.
REFFERENCES
Annan, K.; Camdessus M. and Rubin R. (2008) “Amid
the turmoil, do not forget the poor,” Financial
Times, October 30, http://next.ft.com/content/c9c35622-a6a6-11dd-95be-000077b07658
[accessed April 8 2016].
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