Dependency Underdevelopment Theory

influence the dynamics of all countries in the process of modernisation and variations and deviations from the norm may occur.

Rostow named the first stage of this model “The traditional stage”, which is the stage of the underdeveloped country’s unawareness of their ability to influence and change their environment and economic situation (Ibid., p. 295; Rostow, 1990, pp.4, 5). For example a country that relies on agriculture, as it is characteristic for this particular stage that most citizens are engaged in subsistence agriculture, but does not seize its opportunity to utilise their goods and low profit to trade and develop (ibid). The results of their production on the fields are solely used to sustain their household and not to create a

43). ‘Dependency as a theory of underdevelopment’ is build on the belief that if underdeveloped countries experience economic development, it will harm the dominant interest in developed countries or also referred to as advanced capitalist countries (Ibid.). In order to avoid this trend “the advanced nations will form alliances with pre-capitalistic domestic élites”(Ibid, pp. 43, 44), which will provide “easy access to domestic resources” (Ibid., pp. 43, 44; Billet, 1993, p. 20). to the advanced nations, resulting in continuing surplus extraction and therefore the original country losing the surplus to foreign capital or the élite, hence maintaining the country's economic development stagnant (Ibid.; Ibid.). One of Frank's main arguments was that the core country’s development always requires that the “periphery”countries experience underdevelopment (Ibid., p.

Due to the fact that this project is examining why the implementation of the CPA has not created development in Mozambique, its impacts on the European development and economy are only considered to a small amount. Additionally, we have chosen to examine Mozambique, as there exists a paradox of the country’s high GDP and the continuous poverty with a focus on the non-mutual benefits. An aspects that we have excluded from the research is the reasons behind migration and the fact that a high percentage of Mozambicans migrate to other countries as a consequence of poverty and unemployment, keeping the country underdeveloped. Another aspect that we have chosen to not examine further, is the corruption and if decision-makers in the relevant countries are corrupted and do not prioritise the wellbeing of their nation’s citizens, but instead seek personal gain through financial mismanagement. To focus this project on corruption in Mozambique, would require the availability of documents proving financial mismanagement which are hard