Q: Assess critically A. G. Frank’s theory of development of underdevelopment’.

Model Answer:

Development of Underdevelopment Theory by A. G. Frank

André Gunder Frank, a German-American economic historian, and sociologist developed the theory of development of underdevelopment. This theory was a radical critique of the traditional developmental theories that were popular during the 1960s. Frank rejected the idea that underdevelopment was a stage all countries must pass through, arguing instead that underdevelopment is a result of capitalist development.

Key Arguments of the Theory

Frank posited that economic activities in the developed capitalist countries often lead to serious economic problems in the less developed countries. He argued that the world capitalist system is organized in such a way that the rich core countries develop at the expense of the poor peripheral countries. This process, he claimed, leads to the development of underdevelopment.

Frank identified a pattern of “metropolis-satellite” relationships, where the economic activities in the metropolis (developed countries) cause underdevelopment in the satellite regions (underdeveloped countries). The metropolis extracts surplus from the satellite, which leads to wealth accumulation in the metropolis and poverty in the satellite.

Critique of the Theory

Frank’s theory has been criticized on several grounds.

• Firstly, it has been argued that the theory is overly deterministic and simplistic. It tends to paint a picture of a world neatly divided into exploitative rich countries and exploited poor countries, ignoring the complexities and nuances of global economic relationships.
• Secondly, the theory has been criticized for its lack of empirical support. Many countries that were once considered peripheral, such as South Korea, Taiwan, and Singapore, have successfully developed their economies without severing ties with the core countries.
• Thirdly, the theory underestimates the role of internal factors in underdevelopment. It largely ignores the impact of domestic policies, corruption, political instability, and cultural factors on the economic performance of underdeveloped countries.
• Lastly, the theory has been criticized for its pessimistic view of the prospects for underdeveloped countries. It suggests that these countries are trapped in a cycle of underdevelopment with no clear path to development.

Examples

A classic example often cited in support of Frank’s theory is the relationship between colonial powers and their colonies. For instance, during the colonial era, Britain (the metropolis) exploited India (the satellite) by extracting its resources and using it as a captive market for British goods. This, according to Frank, led to the underdevelopment of India.

On the other hand, the economic success stories of East Asian countries challenge Frank’s theory. These countries managed to develop their economies by strategically integrating into the world capitalist system, not by distancing themselves from it.

Conclusion

While A.G. Frank’s theory of development of underdevelopment provides a critical perspective on global economic relationships, it is not without its limitations. It offers valuable insights into the dynamics of exploitation and underdevelopment, but it oversimplifies the complex realities of global capitalism and underestimates the potential for development within the existing system.