Sociology 7c. Assess critically A. G. Frank's 'theory of development of underdevelopment'. UPSC 2023, 10 Marks
Andre Gunder Frank is a prominent figure in the sociology of development and underdevelopment, particularly known for his contribution to dependency theory. In this theory, Frank argues that the development of the global North (industrialized countries) is intrinsically linked to the underdevelopment of the global South (less developed countries).
This article is part of Synopsis IAS Sociology Optional Course for UPSC.
Introduction
Andre Gunder Frank is a prominent figure in the sociology of development and underdevelopment, particularly known for his contribution to dependency theory.
In this theory, Frank argues that the development of the global North (industrialized countries) is intrinsically linked to the underdevelopment of the global South (less developed countries).
The Theory of Development of Underdevelopment by A.G. Frank:
1. Dependency Theory: Underdevelopment in the global South is a direct consequence of the historical and ongoing economic and political dependency on the global North.
2. Historical Exploitation: Historical exploitation and colonization of the South by the North was a key factor in underdevelopment. This exploitation led to the extraction of resources and wealth, which led to Northern development.
3. Unequal Exchange: There is unequal exchange in global trade, where the South exports primary goods at low prices while importing manufactured goods at high prices from the North.
4. Core-Periphery Model: Frank classified the world into a core-periphery structure, where the core represents developed countries and the periphery represents underdeveloped countries. The core benefits from the periphery's cheap labor and resources.
Criticisms of A.G. Frank's Theory:
1. Simplistic: Critics argue that Frank's theory oversimplifies the complex dynamics of development and underdevelopment, ignoring other factors such as culture, governance, and internal issues in underdeveloped nations.
2. Neglects Internal Factors: It downplays the role of internal factors and governments in perpetuating underdevelopment. Not all underdeveloped countries can be solely attributed to external exploitation.
3. Lack of Policy Prescriptions: Frank's theory lacks practical policy prescriptions for addressing underdevelopment, making it less useful for policymakers.
4. Progressive Forces of Capitalism: Bill Warren and others argue that capitalism and imperialism have played a progressive role in developing the Third World by providing skills, capital, and technology for industrial progress.
5. Criticism by Neo-liberal Economists: It potentially lead to corruption, lack of competition, sustainability issues, and domestic opportunity costs due to state intervention in industries.
Merits of A.G. Frank's Theory:
1. Global Perspective: Frank's theory provides a global perspective on underdevelopment, highlighting the interconnectedness of the world economy.
2. Historical Context: It emphasizes the historical context of underdevelopment, which is essential for understanding its persistence.
3. Critical Lens: Frank's theory encourages critical thinking about the power dynamics in international relations and the impact of colonialism and imperialism on the global economy.
Applicability:
1. This theory can be applied to India, where colonial exploitation is seen as a significant factor in its historical underdevelopment. India's role as a supplier of raw materials during colonization fits Frank's framework.
2. Worldwide, the theory applies to many developing countries that have been historically exploited for their resources, labor, and markets by developed nations. For instance, the extraction of natural resources in Africa by Western countries and their impact on African underdevelopment aligns with Frank's theory.
3. Even today, multinational corporations continue this pattern by seeking cheap labor and raw materials in the Third World, ultimately benefiting the West.
4. Dependency is also maintained through debt and control over world prices.
Conclusion:
A.G. Frank's theory of development of underdevelopment offers valuable insights into the historical and structural factors that contribute to global economic inequality. While it has faced criticism, it remains a crucial framework for understanding the ongoing challenges faced by underdeveloped nations in the global context. Understanding the dynamics of underdevelopment is essential for addressing the complex issues of poverty and inequality on a global scale.