1. Prepared By Prof Alvin So1 SOSC 188 Lecture 9 The New Dependency (I): Dependent Development

2. Prepared By Prof Alvin So2 The Old-fashioned Dependency Theory - Neo-Colonialism Triple Alliance Dependent Development

3. Prepared By Prof Alvin So3 The Old-fashioned Dependency Theory - Neo-Colonialism Little change after political independence - still one-crop economy, still little industrialization, still dependent state Satellite status prevents autonomous development more foreign control, less development less foreign control, more development

4. Prepared By Prof Alvin So4 Triple Alliance Three new actors of development (1) Transnationals (2) nation-state (3) domestic capitalists

5. Prepared By Prof Alvin So5 (1) Transnational corporations Investments/loyalty not tied to a particular nation-state Promote industrialization across the globe Provide capital and technology

6. Prepared By Prof Alvin So6 (2) Domestic Capital Market to big be monopolized by the foreigners Wait for golden opportunity (war) Provide management and local market

7. Prepared By Prof Alvin So7 (3) The State as a Promoter Infrastructure building (airports, freeways, harbors, high-tech zones) social spending (education, health care) provide incentives (taxes, loans, subsidizes) Regulations (tariffs to protect) Provide preferential treatments

8. Prepared By Prof Alvin So8 Triple Alliance Conflict The triple alliance: Partnership amidst contradictions Transnationals: Don ’ t want to share high-tech Nation-state: Promote nationalism Domestic capitalists: Want automony

9. Prepared By Prof Alvin So9 Dependent Development Still foreign control on technology: local industry can ’ t catch up, limited development Widen income inequality: benefits not share by the poor Political implications: authoritarianism to suppress dissents Fragile partnership