‘TO WHAT EXTENT IS DEPENDENCY A CAUSE FOR UNDERDEVELOPMENT IN THE THIRD WORLD?’ Jenna Hardwick, Mussarat Tariq, Peter Drew, Sagal Haji & Linh Nguyen
INTRODUCTION • History of the world is of region against region. Europe against Asia. • Whilst Africa remained dangerous to explore for outsiders due to disease.
MAP OF THE SILK ROAD AND INDIAN OCEAN TRADE SYSTEM
MODERNISATION • The transition from a traditional society to a modern society; industrially, politically and economically. • Rostow’s 5 stages of development
ZAMBIA
BOTSWANA
Regional Overview Sub- Saharan Africa’s real GDP growth picked up to 4.7 percent in 2013 supported by robust domestic demand, notably investment growth. Strengthening external demand is expected to support growth over the forecast horizon, with regional GDP growth projected to improve to 5.3 percent in 2014, rising to 5.5 percent in 2016. However, a protracted decline in commodity prices, tighter global financing conditions, and domestic risks including political unrest, and weather shocks could weaken growth prospects.
THE BRITISH EMPIRE IN AFRICA
CORE, PERIPHERY AND THE GLOBAL NORTH
CORE, PERIPHERY AND THE GLOBAL NORTH
BRITISH SOUTH AFRICA COMPANY
BOTSWANA CASE STUDY What will be discussed: • Political factors • Social factors • Economic factors
BACKGROUND • Botswana is a landlocked country situated in Southern Africa, with a population of about 2 million people. • Botswana is counted among the top economic performers in the world for the record it has achieved in the forty years.(1)
ECONOMY At independence in 1966, the country was one of the poorest in the world • with a GDP per capita income of about USD 100. By the early 1990s, however Botswana had attained middle income status • with a GDP per capita income of about USD 6000 Growth rate of 4% (1) • With a Gini coefficient of 0.61, Botswana portrays a relatively unequal • distribution of wealth. (4) • The incidence of poverty is also high, with 18.4% of the population living below the poverty line. • Other challenges includes high unemployment rate of 17.8% Human Development Index (HDI) ranking and score mainly due to the high • HIV/AIDS prevalence of 23.4% that drags down life expectancy.
IMPORTS AND EXPORTS • 65% of exports are diamonds • Main export and importer is the UK (65%)
SOCIAL FACTORS • Once had the world’s highest rate of HIV/Aids infection, has one of Africa’s most -advanced treatment programmes. Anti-retroviral drugs are readily available. (2) • Education expenditure is among the highest in the world, around 8% of GDP • Poverty rates declining from over 50% at independence to just above 19% today • Unemployment has remained persistent at nearly 20%. (3)
POLITICS Botswana, one of Africa’s most stable countries. • It is relatively free of corruption and has a good human rights record. (2) • • Free and fair elections held regularly and the constitution provides for fundamental right and freedoms. The Botswana Democratic Party (BDP) has been in power since the first • elections were held in 1965. (3) The country was a haven for refugees and anti-apartheid activists from • South Africa in the 1970s/80s. More recently, the country has seen an influx of illegal immigrants • seeking respite from the economic crisis in neighboring Zimbabwe. (2)
Before Controlled exports Botswana had a Independence, focusing on asbestos Bechuanaland they made Stopped importing protectorate from NDPs, to goods and saved 30 UK in 1885 prepare for months worth independence Encouraged people to pursue secondary and tertiary jobs, After Independence was modernised the considered one of the country = better poorest countries in the healthcare etc world. Then discovered diamond. Increase of Increased Better facilities, and literacy rate, government education standard, increase of skills revenue, 30% of free primary and qualifications money went to education education
ZAMBIA CASE STUDY • The Republic of Zambia In 2010, the World Bank named Zambia one of the world’s fastest economically reformed countries
POLITICAL SITUATION • A system of multiparty democracy with a distinct separation of powers between the 3 arms of Government: legislature (Parliament), executive (Cabinet) and judiciary (Courts of Law). • Reputation of stability, efficiency and transparency • Strong anti-corruption measures have been instituted • Conducts free and fair elections every five years
ECONOMIC SITUATION At the end of 2011: Borrowings rose to 27% of the country’s $19.2 billion economy • 2012: • Unemployment rate: 13.1% 2013: GDP: US$22.38 billion • GDP real growth rate: 6% • 2014: • GDP per capita: US$ 1,655 (2014 estimate) • Copper is the main export product – over 70% • Top export destinations: China (48%) & South Africa (10%)
ECONOMIC SITUATION (CONT.) At independence in 1964, Zambia was “one of the richest and most • urbanized of the newly independent developing countries in Africa” Poorly served with physical & social infrastructure • Had virtually no manufacturing capacity & very limited managerial • resources Population below poverty line: 60.5% (2010) •
SOCIAL SITUATION Education: Although Zambia made commendable progress in increasing access and gender parity, more than a quarter million children are out of school - 47% do not complete the primary cycle
SOCIAL SITUATION (CONT.) Healthcare: • Total expenditure on health as % of GDP (2012): 6.5 • Inequitable access to basic health services between provinces, and between urban and rural areas. • Drugs, equipment and qualified personnel shortages • 36% of rural population has access to improved drinking water sources • Life expectancy is among the lowest in the world • Death rate is one of the highest
Lack of government Little government Poor facilities money/in too spending much debt Low salaries – skilled people refuse to work Hinder education – Lack of lack of Foreign skills Little motivation borrowing less well- contribution for people to to pay debt paid jobs back to acquire government education revenue
THEORISTS ON DEPENDENCY IN AFRICA • Walter Rodney (1972) – colonialism not merely exploitation, political influence • Ndirangu Mwaura (2000) – colonizers influence on ruling elitist governments ‘New Colonialism’ • Kevin Chillington (1989) – artificial borders
THEORISTS ON DEPENDENCY IN AFRICA CONT. • Samir Amin (1972) – multi staged theory • Simon Johnson and James Robinson (2001) – positive influence of colonialism, inspired developed on Botswana
CRITICISMS… • Dependency and modernisation theory presume all developing countries have the same characteristics: • Botswana – very little violence, experienced economic growth. • Zambia – corruption, foreign exploitation
CRITICISM… • Dependency and colonialism: • Walter Rodney – western countries take advantage of third world countries for their own personal growth • Zambia and Botswana are both resource rich countries, however only Botswana are experiencing the benefits
CRITICISMS… • Dependency is exaggerated: • Anthony Brewer – dependency no longer exists • Recent economic developments… - China, India and South-East Asian countries, rising - USA, since 1970s very slow decline
CRITICISM… Dependency theorists are too pessimistic according to Cristobal Kay: • Capitalism can result in non-western countries development • • Its not in the interest of fully developed countries to let third world countries develop to the same extent • Therefore, Zambia and Botswana may never reach full development
CRITICISMS… • Dependency theory does not consider internal causes for underdevelopment: • Ignores domestic factors such as political, social, cultural • Corruption - Rich get richer, poor stay poor • Dependency has been established between centre and periphery, resulting in inequalities
CRITICISMS… • What does dependency offer developing world? • Dependency theory is unreliable for maintaining development • Difficult to escape dependency as it would involve the country separating from the global economy.
CONCLUSION • Dependency theory underplays internal causes The rise of China and India not just the West • • Internal causes: Political, Social, Cultural and Environmental Zambia – fractured society and economy • • Botswana – oldest democracy and still going strong • Therefore dependency theory in our opinion is not universal!
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