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International Dependence
During the 1970s international dependence model gained increasing
support, especially among the intellectuals of developing countries. While
this model went out of favour in the 1980s and 1990s, versions of it have
enjoyed resurgence in recent years as some of its views have been adopted
by supporters of anti-globalization movement
Essentially, international dependence models view developing countries as
beset by institutional, political and economic rigidities, both domestic and
international, and caught up in a dependence and dominant relationship
with rich countries.
The dependency school have three major streams of thought, the neo-
colonial dependence, the false paradigm model, and the dualistic
development thesis.

The neo-colonial dependence model:
This approach is basically derived from Marxist literature. It attributes the
existence and continuance of underdevelopment primarily to the historical
evolution of a highly unequal international capitalist system of rich country-
poor country relationship. This unequal relationship between the centre
(the developed countries) and the periphery (underdeveloped countries)
hinders poor nations
The neo-Marxist, neo-colonial view of underdevelopment attributes
poverty of underdeveloped world to the existence and policies of the
industrial capitalist countries and their extensions in the form of small but
powerful elite or compradore group or class in the underdeveloped
countries.
The compradore class includes certain big landlords, industry owners,
traders, military and civil top bureaucrats, professionals and union leaders.
There is a convergence of the interests of comprador elite with the
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interests of financial and industrial elite of developed nations. The
comprador group serve to inhibit any genuine reform efforts that might
benefit the wider population of underdeveloped countries and, due to this
service, the group is rewarded by the international interest groups
including MNC, aid agencies, World Bank and IMF, which are tied allegiance
or funding to wealthy capitalist countries.
Dependent capitalism
Underdevelopment is a particular form of capitalist development known
as dependent capitalism..Dependence is a conditioning situation in which
the economies of one group of countries are conditioned by the
development and expansion of others
According to Samir Amin the contemporary global system is characterized
with monopoly of technology, financial capital, natural resources, mass
media and strategic weapons. The system is highly polarized due to lack of
global political and social organizations, economic system to meet the
requirements of industrialization in periphery economies, unequal income
distribution and poverty.
The false paradigm Model
According to this approach the relationship of international dependence is
strengthened through inappropriate and faulty advice provided by
international experts or advisors from developed countries assistance
agencies and multinational donor organizations. These so called experts
offer sophisticated concepts, elegant theoretical structures, and complex
econometric models of development, which often lead to inappropriate or
incorrect policies.
certain intellectuals, trade unionists, high level government economists,
and other civil servants all get their training in developed country
institutions, where they are unintentionally served an unhealthy dose of
alien concepts and elegant but inapplicable theoretical models. Having little
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or no really useful knowledge to enable them to come to grip in an effective
way with real development problems, they often tend to become reluctant
apologists for the existing system of elitist policies and institutional
structures.
The dualistic development model:
The notion of dualism is explicitly discussed in international dependence
theory.The concept is based on unequal distribution of wealth within and
across nations. It represents the existence and persistence of increasing
divergences between rich and poor nations and rich and poor people on
various levels.
The concept of dualism embraces four key arguments:
Coexistence of superior and inferior in a given space. For example
Lewiss notion of coexistence of modern and traditional method of
production, coexistence of highly educated wealthy elite and masses of
illiterate poor people, coexistence of powerful and wealth industrialized
nations with weak, poor peasant societies in international economy.
The coexistence is chronic and not merely transitional. The international
coexistence of wealth and poverty is not simply a historical phenomenon
that time could eliminate the discrepancy between superior and
inferior.
The difference between wealthy and poor is not decreasing but increasing
over time. For example the productivity gap between workers in developed
countries and in most underdeveloped countries seems to widen with each
passing year.
The interrelationship between wealthy and poor is not based on
cooperation but on antagonism. There seems to be no trickle-down effect
Baran: Neo-Marxist Analysis of Economic Development:
According to his understanding Marx considered industrial countries like
England and Sweden matured for transformation into socialist states.
Socialism in backward and underdeveloped countries has a powerful
tendency to become a backward and underdeveloped socialism
For a socialist society in the advanced countries would not be compelled to
engage in force marches towards industrialization, or bound to withdraw
from popular consumption large parts of low incomes, or constrained to
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devote to military purpose significant share of small aggregate output. Such
a society would not only attack the waste, irrationality, and cultural and
moral degradation in the West, it would also strive to solve the problems of
wants, disease and starvation in the underdeveloped countries.
According to Baran economic development depends on the class struggle.
Society has to be transformed, as certain classes and groups obstruct
change while others advance it. An economy based on comprehensive
economic planning can function and grow without the benefits of private
enterprise. The dominant interests of advanced capitalist countries are
inimical to economic development in the poor countries, because the latter
are indispensable as the hinterlands of capitalism, supplying it with raw
materials, profits, and investment outlets.
The present problems in the poor countries are that actual economic
surplus are much smaller than the potential surpluses, and much of the
surplus is wasted in lavish consumption rather than being used to promote
development.