Global Economic Sustainability: Dependency Theory of Development

Global economic sustainability is farther than it seems, the gap between first and third world countries climbs to a deadly height and anytime can plummet down causing economic turmoil. The fight for development reverted back to a barbaric code applied centuries ago- the strong shall live, and the weak will perish; the survival of the fittest. The economic battlefield now hangs on the balance between the capitalists and third world countries, the latter stripped of its natural resources, abused of its labor force, thus losing the war, a war where the its own weapon is the cause of its own demise.

The structural change proposed by the Dependency Theory of Development, is indeed timely. Since the theory is based on Southern American nations, it is still a very much relevant paper because it covered issues which are highly in tune with the situation not only within Southern American third world rated nations but also around the world. It never failed to address the common problems of underdog nations in terms of economic discrimination. An enduring and long battle is to be fought for a global economy with equity and profit for both sides.

The theory discussed the root of why and how the relationship between third and first world countries is what it is now. The third world countries being dependent mainly on the technology and financing of the first world capitalists were long ago under a desperate situation to give everything or to lose all. They were unaware of the power they gave to capitalist nations; this deep-rooted history of dependency may be the cause of the continuing struggle for economical independence.

The labor force is a very significant factor in changing the tide in every third world country’s struggle for economic excellence. The massive importation of work force from dependent countries to developed nations is major move in again undermining underdeveloped countries.

The first world country import specialized human resource from poorer countries, giving them a lower level employment which is way below their specialty but masked with high incentives and salaries, leaving the dependent country a very low pool of professionals which is highly significant for its progress.

This situation is further seen on capitalists investing on its satellite nations, training the population of the dependent country, compromising grants and studies and also scholarships, yet in the end hiring back the trained workers and new professionals to work on the business they invested in on the poorer country. Thus it is a complicated web of conspiracy masked by goodwill and in the end profit in the pockets of the capitalists.

Another weak point of the dependent country is the vulnerability of its trade laws, and economic policies. The first world countries enter its satellites in every way they can see an advantage and invest with the backing of more solid laws from their own country and thus manipulating its satellite country’s laws.

Civil disturbance is yet again an excuse in favor of the first world countries for this is a major reason they use for bargaining lower tax and immunities. This point on security is very much arguable in favor of the investors. Since national security is every country’s issue, anyone can acceptably conclude that this problem must be a priority of every country. But taking into consideration the audacity of capitalists to uphold and maximize this concern, simple overreacting can put the leverage on their side.

We can take the Philippines as an example concerning this situation. The country has been, for the past decades, plagued by insurgents and left wing groups terrorizing not only natives but also tourists. The concentration of these terrorist groups is on the southernmost parts of the country, yet incoming investors are largely using the presence of these groups to manipulate the country’s tax directives even though the danger is very much far away on their area.

The issue on natural resources and raw materials are the greatest factor why the existence of metropolis (first world countries / capitalists) and satellites (third world countries / dependents) are still far from favorable. It is the same situation everywhere we look, where the satellite countries are the providers and the metropolis importing the raw materials in the cheapest price.

The dependency study significantly discussed how this simple trade imbalance multiplies into a full scale business advantage for the metropolis. How they import raw materials, commercialize them and export it all back to the satellite countries in higher price. This exchange is sadly ignored, if aware, by the satellite countries dwarfed by the metropolis’ technological might and advantage.

The study gave hints on how both the satellite and metropolis can gain equal trade opportunities without the cutthroat business dirty tricks. International trade laws and monetary grants play a big role on the restructuring process proposed by the study instead of bias laws in favor of the metropolis countries. Technology sharing is a must and also a noteworthy interaction between the satellite and metropolis country, research and development if intensified with the technical help of first world countries can help the satellite countries export first rate raw materials that deserve exact and fair price. Labor and employment issues can be resolved with the intrusion of a fair and credible international court that can monitor human industries and give them what their job deserves.

The solution is therefore not in total balance but in harmony, not in equal profit for each side but by the deserved profit of every party, not who is on top but instead, no one must be down. Everything, is after all, a question of honesty

Technorati Tags: Opinion/Views

Vote Result

Score: 0.0, Votes: 0