MODULE 3 Discussion Forum
According to A. G. Frank, “Underdevelopment is not due to the survival of archaic institutions
and the existence of capital shortage in regions that have remained isolated from the stream of
world history. On the contrary, underdevelopment was and still is generated by the very same
historical process which also generated economic development: the development of capitalism
itself.” What are your thoughts on this?
I partly agree and disagree to A.G. Frank’s statement about underdevelopment. I will
deconstruct some phrases to which I have insights on and expound it based on what I’ve read
and understand, including previous reading materials.
(1) “Underdevelopment is not due to survival of archaic institutions…” Underdevelopment may
still be due to failure of some nations to adapt from the Third World’s perceived reality of
‘development’, and resistance to social mobilization due to culture sensitivity, religious beliefs,
and others conflict-of-interests as mentioned last check-in session.
(2) “Underdevelopment is not due to…the existence of capital shortage in regions that have
remained isolated.” Underdevelopment may still be due to capital shortage as resources may
be allocated differently each region, as well as the demand and supply that varies per season
depending on the availability of resources affecting the economic output. This is also why single
food crop or staple may lead to food insecurity; thus, it is important to promote diversification
in agriculture per region.
(3) I would agree to A.G. Frank’s statement that “underdevelopment was and still is generated
by…the development of capitalism itself.” As Ferraro (2008) mentioned about Prebish’s studies
suggesting that economic activity in the richer countries often led to serious economic
problems in the poorer countries. His phenomenon was that underdeveloped countries, being
the main source of primary commodities (cheaper materials and labor), after value-addition to
products funded by richer institution/nation, would not be able to enough from their exports to
pay for some imports. On example is based on the national nutrition survey (NNS) from Food
and Nutrition Research Institute (2019), the study shows that agricultural households in the
Philippines are less food secured compared to non-agricultural households. Isn’t ironic to think
that our famers and producers are one of the vulnerable groups with less access to food or food
insecure?
Hence, Marxist’s theorists viewed the persistent poverty as a consequence of capitalist
exploitation as part of expansion of ‘developed’ countries. However, Wallerstein’s world
systems approach should also be considered, whereas political economy has direct
consequence to underdevelopment.
In context of dependency theory, underdevelopment will continue to persist as a consequence
of capitalism, with the assumption that economic and political powers have parallel interests to
gain more, while most are left with less. Capitalism in underdevelopment happens not because
of lack of resources, rather it who benefits most from these resources and their dominance in
terms of power economically and politically.
To give highlight to this point is the recent news about the largest file leak in the world branded
as Pandora Papers wherein ill-gotten wealth of elites, world leaders, and other political powers
(including Filipinos elites) were exposed. Pandora Papers opened windows to dark world of the
richest people, and that capitalism not only exist and controls as economic superpowers but
also as political superpowers.
MODULE 3 NOTES:
Modernization theory from Truman (America)
Dependency theory was a reaction from scholars from Latin America to Modernization theory
We view things from where we are. Inherent characteristics of theory based on geography
Dependency Theory
The nations with more power take direction and speed of development of poorer countries
Assumptions:
Underdevelopment is not a process distinctly different from development.
The development of underdevelopment in the Third World nations was and is related to
the economic development of Western Europe and North America
Insert Core and Periphery photo here: ss from phone
Dissociation (Frank)
Delinking (Amin)
Is’t possible?
Capitalist to socialist
There is a radical change in society
There should be a social structure change
World-System Theory
- It started in 1970s
- Wallerstein
- History of capitalist system
Assumptions:
- The world as a single economic system that is capitalist in orientation
- Core states, peripheral, and semi-peripheral
Insert semi-periphery photo: ss from phone
Greater capitalization in core
No periphery dependent
Emphasis on the role of state among these countries
Economic and political dynamic
Development and communication
The concept of culture promoted, assimilated, modified,
Strengths and Weaknesses:
- Strengths:
- Development from the perspective of the colonized
- Weakness
- It is not clear as to how development to be achieved
Partnership could be a strength and weakness