“Dependency” theorists believe that moving surplus
labor from agriculture to industry where that labor will
earn profits that can be reinvested for further growth
is the key to overall economic growth and
development. Is this statement true or false? Explain why.
The statement is false. Dependency theorists actually argue against moving surplus labor from agriculture to industry as the key to economic growth and development. Here's an explanation of why this statement is false and why dependency theorists hold a different perspective:
Dependency theory is a sociopolitical and economic framework that analyzes the causes and consequences of underdevelopment in developing countries. It emerged in the 1960s as a critique of traditional modernization theory, which advocated for the industrialization of developing nations as the means to achieve economic growth and development.
According to dependency theory, the development of industry in developing countries did not lead to overall economic growth and development. Instead, it emphasized that the industrialization process in these countries usually led to the exploitation and dependency on more advanced, industrialized nations.
Dependency theorists argue that the expansion of industries in developing countries was often driven by multinational corporations seeking to maximize their profits through cheap labor and resource extraction. They argue that this kind of economic development only served to reinforce the inequality between developed and developing nations, exacerbating the dependency of the latter on the former.
Furthermore, according to dependency theory, the agricultural sector should not be neglected or abandoned in favor of industrialization. Instead, it emphasizes the need to develop a diversified economy, where both agriculture and industry play important roles. Dependency theorists advocate for policies that prioritize the needs and interests of the local population and encourage self-sufficiency rather than reliance on foreign investments.
In summary, while traditional modernization theory argues for shifting surplus labor from agriculture to industry for economic growth, dependency theory rejects this approach. Dependency theorists believe that such a focus on industrialization, driven by external forces, often perpetuates the underdevelopment and dependency of developing countries on more advanced nations. Instead, they advocate for a more balanced and self-reliant economic development approach that takes into account the needs and interests of the local population.