“The Development of Underdevelopment By Andre Gunder Frank”

The central problem in the study of economic development in the twentieth century is
how to explain the underdevelopment of the majority of the world’s population in the
face of the economic development of a small minority. This problem has been
obscured by the conventional wisdom that the development of the rich countries is the
model for, and the necessary precondition of, the development of the poor countries.
This view is a little historical and misleading. The development of the rich countries was
achieved at the expense of the development of the poor countries. The current
underdevelopment of the Third World is in large part the historical product of past and
continuing economic relations between the rich countries of the center and the poor
countries of the periphery.

The central argument of this paper is that the development of underdevelopment is
the necessary product of the historical development of the capitalist world-economy.
The capitalist world-economy is a single, integrated system of production and
exchange that has been in existence for over five hundred years. It is divided into a
hierarchy of core, semi-periphery, and periphery countries. The core countries are the
dominant economic and political centers of the system. They control the major sources
of capital, technology, and markets. The semi-periphery countries are intermediate in
the hierarchy. They are partly integrated into the world-economy but also have some
degree of autonomy. The periphery countries are the most underdeveloped and
dependent countries in the system. They are largely producers of raw materials and
agricultural products for the core countries,

The development of the core countries has been based on the underdevelopment of
the periphery countries. The core countries have expropriated the surpluses of the
periphery countries through unequal exchange, unequal terms of trade, and direct
exploitation. This process has created a vicious circle of underdevelopment in the
periphery countries. The periphery countries are unable to accumulate capital because
they are constantly transferring their surpluses to the core countries. This lack of
capital accumulation prevents the periphery countries from developing their own
industries and economies. As a result, they remain dependent on the core countries
for manufactured goods and technology.

The development of underdevelopment is not a natural phenomenon. It is the product
of specific historical and social relationships. It is possible to break out of the vicious
circle of underdevelopment. However, this requires a fundamental transformation of
the world-economy. The periphery countries must break their dependence on the core
countries and develop their own economies. They must also create new international
economic and political institutions that promote the development of all countries, not
just the rich countries.

This article was a seminal work in the development of dependency theory, a school of
thought that argues that the underdevelopment of the Third World is the result of its
integration into the capitalist world-economy. Frank’s argument challenged the
conventional wisdom that the development of the rich countries is the model for, and
the necessary precondition of, the development of the poor countries. He showed that
the development of the rich countries was achieved at the expense of the development
of the poor countries. The current underdevelopment of the Third World is in large part
the historical product of past and continuing economic relations between the rich
countries of the center and the poor countries of the periphery.

Dependency theory has been influential in the study of development and
underdevelopment. It has helped to explain the persistence of poverty in the Third
World and the failure of many development projects. It has also been used to advocate
for policies that promote self-reliance and economic independence for the Third World.

Here are some examples of the development of underdevelopment as provided in the
article “The Development of Underdevelopment” by Andre Gunder Frank: 

The extraction of surpluses from the periphery countries. The core countries have
extracted surpluses from the periphery countries through unequal exchange, unequal
terms of trade, and direct exploitation. For example, the core countries have paid
artificially low prices for the raw materials and agricultural products exported by the
periphery countries, while charging artificially high prices for the manufactured goods
exported to the periphery countries. This has resulted in a net transfer of wealth from
the periphery countries to the core countries.

The creation of a dependent economic structure in the periphery countries. The core
countries have created a dependent economic structure in the periphery countries by
encouraging them to specialize in the production of raw materials and agricultural
products. This has made the periphery countries vulnerable to fluctuations in the world
market prices for these commodities. It has also prevented them from developing their
own industries and economies.

The suppression of industrialization in the periphery countries. The core countries
have suppressed industrialization in the periphery countries by imposing tariffs and
other barriers to trade. This has made it difficult for the periphery countries to import
the technology and capital they need to develop their own industries. 

The political domination of the periphery countries by the core countries. The core
countries have politically dominated the periphery countries through military
intervention, economic coercion, and political subversion. This has prevented the
periphery countries from asserting their own interests and developing their own
economies.

These are just a few examples of the development of underdevelopment as provided
in the article “The Development of Underdevelopment” by Andre Gunder Frank. These
examples illustrate how the integration of the periphery countries into the capitalist
world-economy has led to their underdevelopment.

Here are some of the countries used in the article “The Development of
Underdevelopment” by Andre Gunder Frank:

Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, and Venezuela.

These countries are all located in Latin America, which was one of the main focus of
Frank’s research. He argued that Latin America was particularly vulnerable to the
development of underdevelopment because it was integrated into the capitalist world economy at a very early stage.
Frank also used examples from other countries, such as India and China, to illustrate
his argument. However, he focused primarily on Latin America because he believed
that it was the most underdeveloped region in the world.
It is important to note that Frank’s theory of underdevelopment has been challenged
by some scholars. However, it remains an influential theory that has helped to shape
our understanding of the development process. 

The world wars are mentioned briefly in the article “The Development of
Underdevelopment” by Andre Gunder Frank. Frank argues that the world wars were
a major factor in the development of underdevelopment in the Third World. He writes:

“The two world wars, and the depression which followed the first, accentuated the
process of the development of underdevelopment in the underdeveloped countries.
They further weakened their economies and increased their dependence on the
metropolitan countries.”

Frank argues that the world wars led to the destruction of infrastructure and the loss
of capital in the Third World. This made it more difficult for these countries to develop
their own economies. The world wars also led to the imposition of new economic and
political arrangements on the Third World, which furthered their dependence on the
metropolitan countries.

For example, the Bretton Woods system, which was established after World War II,
created a system of fixed exchange rates that favored the developed countries. This
system made it difficult for the Third World countries to export their goods and earn
foreign exchange. The world wars also led to the creation of new international
organizations, such as the World Bank and the International Monetary Fund, which
were dominated by the developed countries. These organizations often imposed
policies on the Third World countries that were designed to benefit the developed
countries, rather than the Third World countries.

Frank argues that the world wars were a major setback for the development of the
Third World. They helped to perpetuate the underdevelopment of these countries and
made it more difficult for them to break out of the vicious circle of poverty.

The main hypothesis in Andre Gunder Frank’s article “The Development of
Underdevelopment” is that the underdevelopment of the Third World is not due to its
own internal problems, but rather to its integration into the capitalist world-economy.
Frank argues that the Third World countries have been underdeveloped by the core
countries through a process of unequal exchange, unequal terms of trade, and direct
exploitation.

Frank’s hypothesis is based on the following ideas: 

• The capitalist world-economy is a single, integrated system of production and
  exchange that has been in existence for over five hundred years. 
• The core countries are the dominant economic and political centers of the system.
  They control the major sources of capital, technology, and markets. 
• The periphery countries are the most underdeveloped and dependent countries in the
  system. They are largely producers of raw materials and agricultural products for the
  core countries. 
• The development of the core countries has been based on the underdevelopment of
  the periphery countries. 
• The periphery countries are unable to accumulate capital because they are constantly
  transferring their surpluses to the core countries.
  The periphery countries are trapped in a vicious circle of underdevelopment. 

Frank’s hypothesis has been influential in the study of development and
underdevelopment. It has helped to explain the persistence of poverty in the Third
World and the failure of many development projects. It has also been used to advocate
for policies that promote self-reliance and economic independence for the Third World.
However, Frank’s hypothesis has also been challenged by some scholars. They argue
that Frank’s analysis is too simplistic and that it ignores the role of internal factors,
such as corruption and bad governance, in the underdevelopment of the Third World. 

Overall, Frank’s hypothesis is a provocative and challenging one. It has helped to
shape our understanding of the development process and has prompted important
debates about the causes of underdevelopment and the best way to achieve
development.

In conclusion, Andre Gunder Frank’s article “The Development of
Underdevelopment” is a seminal work in the development of dependency theory.
Frank argues that the underdevelopment of the Third World is not due to its own
internal problems, but rather to its integration into the capitalist world-economy. He
argues that the Third World countries have been underdeveloped by the core countries
through a process of unequal exchange, unequal terms of trade, and direct
exploitation. 

Frank’s hypothesis has been influential in the study of development and
underdevelopment. It has helped to explain the persistence of poverty in the Third
World and the failure of many development projects. It has also been used to advocate
for policies that promote self-reliance and economic independence for the Third World.
However, Frank’s hypothesis has also been challenged by some scholars. They argue
that Frank’s analysis is too simplistic and that it ignores the role of internal factors,
such as corruption and bad governance, in the underdevelopment of the Third World. 

Overall, Frank’s hypothesis is a provocative and challenging one. It has helped to
shape our understanding of the development process and has prompted important
debates about the causes of underdevelopment and the best way to achieve
development. 

It is important to note that the world has changed significantly since Frank wrote his
article in 1966. The rise of China and other emerging economies has challenged the
traditional view of the world-economy as a hierarchical system with a clear division
between core and periphery countries. However, Frank’s insights into the relationship
between development and underdevelopment remain relevant today. The Third World
countries are still largely dependent on the core countries for capital, technology, and
markets. And the core countries still benefit from the exploitation of the periphery
countries. 

The challenge for the Third World countries is to break out of the vicious circle of
underdevelopment and achieve genuine development. This will require a fundamental
transformation of the world-economy and the creation of a more equitable system that
benefits all countries, not just the rich countries