Historic Form of Dependence

HISTORIC FORM OF DEPENDENCE

There are three historic forms of dependence

1) Colonial Dependence: Trade export monopoly by the center or core state.

2) Financial Industrial Dependence: (Post Colonial area) The Hegemonic centers (Ruling, supreme, dominant) invest in poor states in raw material and agricultural products (Mines, Crops, etc) and all of the profit surplus repatriates to the hegemonic state.

3) Technical Industrial Dependence: MNC are investing in poor states and taking back all of the profit.

The first two namely Colonial Dependence and Financial Industrial Dependence are also collectively known as Export Economies. Some of there common characteristics are given bellow.

1) Dependent states produce raw material (Agriculture, Gold, Silver, etc) and export it to dominant countries. The production totally depends on demand from hegemonic centers.

2) Rigid production culture prevails i.e. the dependent countries specialize in only those products which are required by hegemonic centers.

3) Export Economies have three main sectors

a) Export Sector (mainly Agriculture sector)

b) Complementary Sector (services such as to carry agriculture from farm to market).

c) Subsistence sector (1. Provides labour for Export Sector, 2. Shocks are absorbed) subsistence sector is based on work-income sharing and there is a high exploitation of labour.

4) All of the export earnings are spent on:

a) Production Materials

b) Luxury Items (Consumed by the capitalists OR