How is dependency theory particularly relevant now?
First of all, how industry is structured globally still reproduces relations of dependence and leaves workers in developing countries especially exposed during the pandemic.
While global economic integration has deepened, which has been associated with an increase in efficiency and ‘flattening’ of the world, the spread of global value chains involves rigid power imbalances & deep vulnerabilities for those at the bottom of the hierarchy.
Many developing countries have been able to move into just-in-time manufacturing, but this production is still characterized by relatively low-skilled and low-tech work and a heavy reliance on companies concentrated in the centre.
Therefore, as global demand grinds to a halt, manufacturing workers in the periphery are seeing their jobs disappear as multinational corporations cancel their orders (an issue raised by the ILO recently). ilo.org/global/topics/…
Secondly, developing countries continue to be vulnerable to financial cycles generated by the center – which was a key insight by dependency theorists. In the wake of #COVID19, there have been dramatic reversals of capital flows – indeed the largest outflow ever recorded.
As the much needed fiscal space of developing countries is constrained by these external factors, activists, academics, and policy-makers have called for debt moratoria, IMF support, and debt relief as necessary policies. developingeconomics.org/2020/04/04/deb…
Not only does the structure of the global financial system make developing countries more vulnerable to shocks and capital flight, but it also makes it particularly difficult to organize an effective response.
This has prompted @UNCTAD (established by one of the forefathers of dependency theory) to propose the establishment of an international body to oversee developing country debt relief programmes in the wake of COVID-19. unctad.org/en/pages/newsd…
COVID exacerbates constraints developing countries already faced. While domestic policies are important, especially w/regards to provisioning of health services & income support, a dependency perspective highlights how an exclusively domestic response is completely inadequate.
This leads us to discussions about how to change the global economic architecture, e.g. through a global green new deal, reform of the international monetary system, reform of global systems of food production, & reform of governance of trade & intellectual property rights.
At a time when the murder of George Floyd has again drawn attention to stark racial inequalities as well, it's important to also remember the strands within dependency theory that refer specifically to racial inequalities – as these strands are often forgotten (see Kay 1989).
I argue that now is the time to acknowledge the hierarchies and dependencies in our global economy as well as structural inequalities in terms of race and gender. This is necessary to support bold steps towards global structural solutions.
After the intro by @pritishbehuria & @GoodfellowTom (linked to above), you can read the interventions summarized in chronological order.
I was up first, focusing my intervention on the problem of lack of South-centered theorisation in development studies devstud.org.uk/2023/02/28/the…
Next up was @Kamnatweets, calling for a deliberate deconstruction of our projections of 'development', picking apart the 'black box' & reckoning with the range of political causes UK Development Studies programmes serve, intentionally or unintentionally, devstud.org.uk/2023/02/28/loo…
Building on scholarship by Amin, Quijano, Sanyal, and feminist IPE, we see a radical decolonization agenda as one necessitates unpacking how dominant approaches may hinder the study of systemic processes associated with decolonization, such as structural racism and imperialism.
This entails analyzing and challenging Eurocentrism in economics, but also seeking to foreground theoretical frameworks which might be more useful for studying systemic processes that lead to various form of subordination.
We engage with 2 main camps in the financialisation lit: 1) largely descriptive studies of how financial institutions, actors, motives & practices have expanded in recent decades (e.g. Krippner, Epstein), focusing on quantitative changes.
We call it the 'expansion' view.
2) More qualitative studies of how finance has come to dominate other realms of the economy, which often see the productive marriage between finance and production as in severe crisis, as the golden age of capitalism has come to an end. We call it the 'divorce' view.
What happens when 7 scholars from different heterodox traditions, including Marxism, Post-Keynesianism & Dependency Theory, get together to work on finance?
It actually did not descend into total chaos 🤯
Check out our research agenda on international financial subordination 😊
We identify how different heterodox & disciplinary traditions bring different strengths to the table for conceptualising how developing economies remain in a subordinate position in the global monetary and financial system, and how this shapes the ways in which finance operates.
We argue that an agenda on international financial subordination (IFS) would benefit from a sustained engagement with heterodox traditions that have been the most explicit and systematic in their analysis of finance in the periphery: Marxist, PK & dependency theory scholarship.
Samir Amin critiqued cultural views of Orientalism and proposed alternative, structural analyses of imperialism, Eurocentrism, uneven development and ideology.
What can contemporary development economics and quests for decolonization learn from this? aeon.co/essays/if-you-…
In this piece I try to make Samir Amin's ideas more accessible to a wider contemporary audience (thanks @samhaselby for the push!).
Many already know Edward Said, who became very influential with his 1978 Orientalism. I therefore start with Amin's critique of Said from the Left.
With his ‘Eurocentrism’ (1988), Amin offers an alternative materialist understanding of how capitalism and imperialism have shaped global colonial inequalities and ideologies, which contrasts with Said's understanding based on discourse.