One of his hypotheses in developing this theoretical model maintains that, “Satellites experience their greatest economic development and especially their most classically capitalist industrial development and when their ties to their metropolis are weakest. ” We can examine this historically, when we look at the economic growth of some satellite countries in relation to core countries throughout the first half of the 20th century.
Economic upheaval in core countries’ economies, specifically throughout World Wars I and II and the Great Depression, beginning with the Wall Street stock market crash of 1929, were periods when several occupant countries saw their most consecutive expansions of development, such as the United Kingdom and the Netherlands.
This was a direct result of the deregulated terms of trade, which the countries had not been able to obtain earlier due to their subservient positions. As an example of this, writer Martínez states in his work “Latin America and therefore the nice Depression” that Chile, Peru, and Bolivia were, according to a League of States report, the countries worst hit by the Depressio...
... middle of paper ...
...t poverty was of little importance, so long as the ruling class had wealth. Another issue to contemplate is that industrial nations, with their assembly lines and highly trained work force, lend themselves well to employee strikes. It is not advantageous for profit-driven firms to extend standards of living and “share the wealth.”
Finally, a last criticism comes from Marxists and their claim that Dependency Theory is “Neo-Marxism without Marxism.” It removes the concept of “class struggle” and makes the struggle one of national, regional, and global affairs. Marxists additionally claim that whereas unequal exchange could also be a key component within the underdevelopment of countries, it is not the impetus for them.
In keeping with the spirit of Marxists and Marxist Theory, the capitalist mode of production is the cause by which countries become underdeveloped.
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