Theories Of Underdevelopment

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The theoretical approach of underdevelopment is historically derived from Andre Gunder Frank’s critical dependency theory and W.W. Rostow’s liberal stages of modernization theory. This has led to a debate between “External causation theory” versus “Internal causation theory” when talking about the causes of underdevelopment. In this section we will contrast the two theories and discuss their different approaches of internal versus external factors of underdevelopment.
Proponents of “internal causation theory” assume that a nation’s lack of development is a result from its failure to use its resources to stimulate modern economic growth. The reason of underdevelopment is derived from society’s failure to establish required
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This has led to little hope for improvements in export position, which is crucial in its potential, export oriented growth. Liberalization has led to increased income inequalities between the world’s richest countries and the world’s poorest countries. As long as there exists an ignorance for the side effects of the neo-liberal economics, development and just growth is seen as relatively farfetched, even in the long run. External factors are the foundation for the underdevelopment in most developing countries and are still hindering development by allowing more developed countries to exploit them. Even though internal adjustments must also take place in order to see development, the external factors must change first allowing for internal…show more content…
With the fast-paced manufacturing of garments, consumers keep up by buying more clothes depending on the trend of the day. The accumulated ‘old clothes’ will then be disposed of and if not thrown to the trash, will be shipped to somewhere else in the world. Garments which were supposedly donated to charity will be sold for a lower price in countries such as Haiti. With the low cost and branded tags, shoppers in those countries unquestionably dig into it. This, however, jeopardizes the local tailoring and textile industries creating unemployment and decrease in investments in those areas.
The structure of supply and demand in industrialized and developing countries is such that industrialized countries are able to reap the benefits from international trade. This transfer of resources makes development impossible, and these unequal trade relations are seen as the reasons for
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