NEO MARXIST THINKING ON DEVELOPMENT

Dependency theory argues that the world is divided between Wealthier core
countries and poorer peripheral countries, and that the core countries are
responsible for actively and purposely holding back the peripheral countries
from developing.

Dependancy theorists (mostly third world theorists) have thought that developing
countries would follow a very different path to development from the socialist path
that was promoted by marx and lenin. reason being that these newer countries had
been placed into a global system and in that system they would remain
permanently and actively underdeveloped.

this global system (the capitalist trade market)had in fact produced a state of
dependancy from the periph. contries on the core contries.

this dependency relationship is defined by a state where one country is

dependant on another.ie where one periph. country cannot survive without
the help of its core,(lesotho and South Africa).

the nature of the relationship depends on the historical period we are talking
about because dependancy theory writers often see the core-periphery
relationship going through a number of stages:

Merchant capitalism - was dominated by trade but trade of a particular

violent kind often accompanied by armed pillage. ie: slave trade

colonialism proper - periph. countries operated to supply raw

materials( plus the labour to produce it) to core economies.

neo colonialism (post colonialism) - blood diamonds, war for oil, etc
(perpetuating stereo types) the distorted form of capitalism.during this
period many of the colonial elite had been educated in Europe, at the best
universities in the world.legal, administrative, and financial systems had
been established.So what was the problem?

For dependency theorists the reason for underdevelopment in peripheral

countries is deliberate economic oppression (trade agreements, SAP's). That
means the economies and societies of peripheral had been moulded as an
extension of core economies and thus could not function outside of a
relationship with the core.

it is believed by dependency theorists that the reason why periph. countries

were underdevelopment is because periph. countries were being blocked in
their development by the activities of the core countries..worse than that
however, there was very litttle prospect of their ever becoming developed.
For, what had been established in periph. countries was a sterile and empty
form of capitalism.it was sterile because it had been drafted into the service
of core countries, and empty because it did nothing to benefit the periph.
country.

Many dependency theorists advocate social revolution as an

effective means to the reduction of economic disparities in the
world system.

you will remember that Marx and Lenin believed that after an initial period
disruption, capitalism would grow and prosper in the third world
contries,dependecy theorists rejected this analysis. the only way out for
perph. countries they said, was to overthrow the capitalist system

there was however one serious problem with the dependency theory : it was
so pessimistic. for dependency theory there was no hope of development
outside of the overthrow of the capitalist system.but particularly from the
1970's onwards it was clear that certain periph. countries were growing at
quite dramatic rates . this was especially true for the four east asian tigers
and this was something that dependency theorist could not explain.

neo marxist theorists have had to take account of the following themes:

1.the role of politics and culture in society.for both Marxists and neo Marxists
economics is the determinant part of society and Politics & culture are
mistakenly seen as weak reflections of a basic economic reality.

2. The unexpected development of east asian countries after world war 2.

Neo marxist theorists have realised the importance of globalisation.

Mechanisms for underdevelopment.

Unequal balance of trade : - the prices of primary goods tend to fall over
time (gold, farming)whereas prices of manufatured goods tend to rise over a
number of years therefore there was an unequal balance between exported
primary goods and imported manufactured goods.In short money was being
sucked out of periph. economies through unfavourable trading
relashionships.
Lack of investment:- from mulitnational corporations in expanding their
operations in colonial countries.there were minimal ripple effects into the
local economy.foreign corporations in periph. countries were there to benefit
from cheap labour but they did not train this labour. they did nothing to add
value to to the goods being produced, raw unprocessed goods were being
exported.

surplus extraction: the use of extremely cheap migrant labour, it

comprised single men who left their families in the rural areas and once their
employment conctract were completed, they returned to their families and
the corporations argued that these mens families were supported by their
extended kinship and farming activities thererefore employers did not need
to pay the wages to support rural families but only the single men.that made
for very low wages and some quite brutal inducements on people to work.

the solution fro africa's development lies within. Africa must not use western models
of governance and development for its own benefit. innovative systems must be
used to promote development.

african leaders need to stimlate local markets, it needs to start with education of
our history heritage and social values.