ASSOCIATED-DEPENDENT DEVELOPMENT THEORY

The structuralist stumper of economic outgrowth attributes under festering to structural deficiencies in a country's delivery (Gudeman, 1978, pp. 121-141). These structural deficiencies be most often defined in the contexts of the need for land reform, problems associated with single-crop or single-resource economies, and problems associated with an excessive concentration of riches and income within a country.

In the wake of the explanatory misadventure of the existing manikins, dependency theory evolved (Palma, 1978, pp. 891-924). Dependency theory relies on an analysis of computer peripheral development within an international capitalistic economic order (Wallerstein, 1979, pp. 101-154). The general dependency model holds that growing countries atomic number 18 controlled economically by developed countries. The general model further holds that under development is not an original state, modern-day under development resulted from the economic imperialism of developed countries, the economic excess in developing countries is drained to developed countries, and multinational barter activity is the means of perpetuating dependency.

Adherents of dependency theory, however, could not agree among themselves as to exactly how dependency inhibited economic development (Palma, 1978, pp. 891-924). quadruplet approaches to the application of dependency analysis. One approach held that dependency was an take of inhibited capitalist development in the periphery count

Williams, Eric. (1970). From Columbus to Castro. New York: Harper & Row, Publishers.

A third approach to the dependency issue was an effort to build up the structuralist model through the introduction of social factors into the analysis, and a retainer of residual term of trade (Palma, 1978, pp. 891-924). Terms of trade point to the ratio of the index of trade prices to the index of consequence prices. An progress in the scathe of trade follows if export prices rise more(prenominal) quickly than import prices or if they fall more tardily than import prices. A secular decline is a long-run downward trend.

Developing countries typically find themselves in situations wherein they export primary products, while they import secondary, or processed, products. Primary products are, in effect, raw, or unprocessed, goods. Thus, a secular decline in the terms of trade for developing countries reflects a change in the export/import price index ratio for these countries, wherein export prices are constricting in a relative sense, while import prices, again in a relative sense, are expanding. A secular decline in terms of trade is ruin for the capital generation process that is crucial to development. During the Colonial Period, terms of trade had been manipulated in favor of the occupying countries, and the terms of trade for developing countries in the post Second World War period of time were, it was contended, a legacy of the Colonial Period (Spraos, 1983, p. 1). A quarter approach to dependency was proposed by Cardoso and Faletto (1967, pp. 24-51) as an analysis of the cover processes of development. This approach eventually came to be known as the associated-dependent development model. In this model, as is true of other approaches to dependency, the peripheral economies are perceived as integral to the international capitalist economy. The associated-dependent model also contends that the power in this system lies outside of the peripheral economies; thus, limiti
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