Capitalist Exploitation and Global Inequality

Global inequality is caused by capitalist exploitation of developing countries. Evaluate this view.

This question requires candidates to demonstrate an understanding of different approaches to explaining global inequality. Good answers will be aware that dependency theory attributes primary importance to the role of capitalist exploitation in explaining global inequality. The theory argues that rich countries benefit from a system of global inequality that ensures less economically developed countries remain poor.

Some critics claim that dependency theory exaggerates the importance of structural factors in explaining global inequality. For example, supporters of modernisation theory argue that cultural factors play a major role in explaining why some countries develop rapidly while others remain poor. Candidates may draw on contrasts between dependency theory and modernisation theory in developing an evaluation of the view on which the question is based.

Comparisons between dependency theory and Wallerstein’s world systems theory could also be used in developing the evaluation.

For:
💥 Marxist sociologist Frank argues that global capitalism has systematically under💥developed the economies of poorer countries in order to benefit the economies of the richer nations. This capitalist exploitation has left poorer countries unable to generate significant economic growth, no matter how hard they try or what value systems they adopt.
💥 Frank and others have pointed out that Western colonisation has had a particularly destructive and exploitative impact on many poorer countries. Colonisation significantly undermined any opportunity poorer countries had to achieve rapid economic development and it has a lasting legacy in ensuring these countries remain dependent on rich Western countries after the end of the colonial regime (a situation referred to as neocolonialism).
💥 The dependency of less economically developed countries is exacerbated by political corruption. For example, entrenched religious and military elites often operate in poorer countries and their interests are not necessarily aligned with efforts to eliminate poverty among their people or to modernise the economic base of the country.
💥 Terms of world trade favor Western economies, and poorer societies consequently do not get a fair price for their raw materials or cash crops. Western TNCs also benefit from the cheap labor available in less developed economies.

Against:
💥 Modernisation theory draws attention to the importance of cultural factors in understanding the development process. Modernisation theorists may have exaggerated the importance of Western neoliberal values for economic growth in the developing world, but a combination of Western ideas with some traditional values and religious influences has proved a potent mix in helping some poorer countries to advance, China being a particular example. Recognizing the contribution of the cultural dimension in development provides a counter to the emphasis in dependency theory on structural factors as the underlying cause of global inequality.
💥 Claims by Marxist sociologists that modernisation theory is too optimistic about the chances of poorer countries escaping from global poverty may be unjustified. There have been some improvements in the standard of living of the poor in many developing countries and TNCs, western aid projects, and support from capitalist💥leaning transnational organizations, such as the IMF and World Bank, would seem to have contributed to this positive development. Moreover, there is some evidence that the most economically successful countries in the developing world have made a concerted effort to adopt some or all of the cultural changes advocated by modernisation theorists. Examples include Singapore, South Korea, and the UAE.
💥 'Dependency' is an extremely difficult concept to operationalize and, therefore, test or measure empirically.
💥 The interconnectedness of the global economy means that capitalist economies are often interdependent. Some commentators see these relationships of interdependence as mutually beneficial to all the countries involved. However, other sociologists have argued that the interdependence benefits the richer countries at the expense of the poorer ones. This point is developed by Immanuel Wallerstein in his world systems theory. He argues that the capitalist economic system is becoming increasingly global in its search for profit. In turn, this is leading to rich countries increasingly focusing on higher skill, capital💥intensive production, and the rest of the world focusing on low💥skill, labor💥intensive production and extraction of raw materials. This constantly reinforces the dominance of the rich countries and condemns workers in poorer countries to a life of exploitative, insecure low💥wage employment.
💥 It may be mistaken to see the impact of colonization on developing societies as wholly negative. Goldthorpe has argued that the British brought much💥needed infrastructure to their colonies in the form of railways, roads, telecommunications, schools, and ports.