"The Development of Underdevelopment By Andre Gunder Frank"

The central problem in the study of economic development in the twentieth century is how to explain the underdevelopment of the majority of the world's population in the face of the economic development of a small minority. This problem has been obscured by the conventional wisdom that the development of the rich countries is the model for, and the necessary precondition of, the development of the poor countries. This view is a little historical and misleading. The development of the rich countries was achieved at the expense of the development of the poor countries. The current underdevelopment of the Third World is in large part the historical product of past and continuing economic relations between the rich countries of the center and the poor countries of the periphery.

The central argument of this paper is that the development of underdevelopment is the necessary product of the historical development of the capitalist world-economy. The capitalist world-economy is a single, integrated system of production and exchange that has been in existence for over five hundred years. It is divided into a hierarchy of core, semi-periphery, and periphery countries. The core countries are the dominant economic and political centers of the system. They control the major sources of capital, technology, and markets. The semi-periphery countries are intermediate in the hierarchy. They are partly integrated into the world-economy but also have some degree of autonomy. The periphery countries are the most underdeveloped and dependent countries in the system. They are largely producers of raw materials and agricultural products for the core countries,

The development of the core countries has been based on the underdevelopment of the periphery countries. The core countries have expropriated the surpluses of the periphery countries through unequal exchange, unequal terms of trade, and direct exploitation. This process has created a vicious circle of underdevelopment in the periphery countries. The periphery countries are unable to accumulate capital because they are constantly transferring their surpluses to the core countries. This lack of capital accumulation prevents the periphery countries from developing their own industries and economies. As a result, they remain dependent on the core countries for manufactured goods and technology.

The development of underdevelopment is not a natural phenomenon. It is the product of specific historical and social relationships. It is possible to break out of the vicious circle of underdevelopment. However, this requires a fundamental transformation of the world-economy. The periphery countries must break their dependence on the core countries and develop their own economies. They must also create new international economic and political institutions that promote the development of all countries, not just the rich countries.

This article was a seminal work in the development of dependency theory, a school of thought that argues that the underdevelopment of the Third World is the result of its integration into the capitalist world-economy. Frank's argument challenged the conventional wisdom that the development of the rich countries is the model for, and the necessary precondition of, the development of the poor countries. He showed that the development of the rich countries was achieved at the expense of the development of the poor countries. The current underdevelopment of the Third World is in large part the historical product of past and continuing economic relations between the rich countries of the center and the poor countries of the periphery.

Dependency theory has been influential in the study of development and underdevelopment. It has helped to explain the persistence of poverty in the Third World and the failure of many development projects. It has also been used to advocate for policies that promote self-reliance and economic independence for the Third World.

Here are some examples of the development of underdevelopment as provided in the article "The Development of Underdevelopment" by Andre Gunder Frank: 

The extraction of surpluses from the periphery countries. The core countries have extracted surpluses from the periphery countries through unequal exchange, unequal terms of trade, and direct exploitation. For example, the core countries have paid artificially low prices for the raw materials and agricultural products exported by the periphery countries, while charging artificially high prices for the manufactured goods exported to the periphery countries. This has resulted in a net transfer of wealth from the periphery countries to the core countries.

The creation of a dependent economic structure in the periphery countries. The core countries have created a dependent economic structure in the periphery countries by encouraging them to specialize in the production of raw materials and agricultural products. This has made the periphery countries vulnerable to fluctuations in the world market prices for these commodities. It has also prevented them from developing their own industries and economies.

The suppression of industrialization in the periphery countries. The core countries have suppressed industrialization in the periphery countries by imposing tariffs and other barriers to trade. This has made it difficult for the periphery countries to import the technology and capital they need to develop their own industries. 

The political domination of the periphery countries by the core countries. The core countries have politically dominated the periphery countries through military intervention, economic coercion, and political subversion. This has prevented the periphery countries from asserting their own interests and developing their own economies.

These are just a few examples of the development of underdevelopment as provided in the article "The Development of Underdevelopment" by Andre Gunder Frank. These examples illustrate how the integration of the periphery countries into the capitalist world-economy has led to their underdevelopment.

Here are some of the countries used in the article "The Development of Underdevelopment" by Andre Gunder Frank:

Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, and Venezuela.

These countries are all located in Latin America, which was one of the main focus of Frank's research. He argued that Latin America was particularly vulnerable to the development of underdevelopment because it was integrated into the capitalist world economy at a very early stage. Frank also used examples from other countries, such as India and China, to illustrate his argument. However, he focused primarily on Latin America because he believed that it was the most underdeveloped region in the world. It is important to note that Frank's theory of underdevelopment has been challenged by some scholars. However, it remains an influential theory that has helped to shape our understanding of the development process. 

The world wars are mentioned briefly in the article "The Development of Underdevelopment" by Andre Gunder Frank. Frank argues that the world wars were a major factor in the development of underdevelopment in the Third World. He writes:

"The two world wars, and the depression which followed the first, accentuated the process of the development of underdevelopment in the underdeveloped countries. They further weakened their economies and increased their dependence on the metropolitan countries."

Frank argues that the world wars led to the destruction of infrastructure and the loss of capital in the Third World. This made it more difficult for these countries to develop their own economies. The world wars also led to the imposition of new economic and political arrangements on the Third World, which furthered their dependence on the metropolitan countries.

For example, the Bretton Woods system, which was established after World War II, created a system of fixed exchange rates that favored the developed countries. This system made it difficult for the Third World countries to export their goods and earn foreign exchange. The world wars also led to the creation of new international organizations, such as the World Bank and the International Monetary Fund, which were dominated by the developed countries. These organizations often imposed policies on the Third World countries that were designed to benefit the developed countries, rather than the Third World countries.

Frank argues that the world wars were a major setback for the development of the Third World. They helped to perpetuate the underdevelopment of these countries and made it more difficult for them to break out of the vicious circle of poverty.

The main hypothesis in Andre Gunder Frank's article "The Development of Underdevelopment" is that the underdevelopment of the Third World is not due to its own internal problems, but rather to its integration into the capitalist world-economy. Frank argues that the Third World countries have been underdeveloped by the core countries through a process of unequal exchange, unequal terms of trade, and direct exploitation.

Frank's hypothesis is based on the following ideas: 

• The capitalist world-economy is a single, integrated system of production and exchange that has been in existence for over five hundred years. 
• The core countries are the dominant economic and political centers of the system. They control the major sources of capital, technology, and markets. 
• The periphery countries are the most underdeveloped and dependent countries in the system. They are largely producers of raw materials and agricultural products for the core countries. 
• The development of the core countries has been based on the underdevelopment of the periphery countries. 
• The periphery countries are unable to accumulate capital because they are constantly transferring their surpluses to the core countries. The periphery countries are trapped in a vicious circle of underdevelopment. 

Frank's hypothesis has been influential in the study of development and underdevelopment. It has helped to explain the persistence of poverty in the Third World and the failure of many development projects. It has also been used to advocate for policies that promote self-reliance and economic independence for the Third World. However, Frank's hypothesis has also been challenged by some scholars. They argue that Frank's analysis is too simplistic and that it ignores the role of internal factors, such as corruption and bad governance, in the underdevelopment of the Third World. 

Overall, Frank's hypothesis is a provocative and challenging one. It has helped to shape our understanding of the development process and has prompted important debates about the causes of underdevelopment and the best way to achieve development.

In conclusion, Andre Gunder Frank's article "The Development of Underdevelopment" is a seminal work in the development of dependency theory. Frank argues that the underdevelopment of the Third World is not due to its own internal problems, but rather to its integration into the capitalist world-economy. He argues that the Third World countries have been underdeveloped by the core countries through a process of unequal exchange, unequal terms of trade, and direct exploitation. 

Frank's hypothesis has been influential in the study of development and underdevelopment. It has helped to explain the persistence of poverty in the Third World and the failure of many development projects. It has also been used to advocate for policies that promote self-reliance and economic independence for the Third World. However, Frank's hypothesis has also been challenged by some scholars. They argue that Frank's analysis is too simplistic and that it ignores the role of internal factors, such as corruption and bad governance, in the underdevelopment of the Third World. 

Overall, Frank's hypothesis is a provocative and challenging one. It has helped to shape our understanding of the development process and has prompted important debates about the causes of underdevelopment and the best way to achieve development. 

It is important to note that the world has changed significantly since Frank wrote his article in 1966. The rise of China and other emerging economies has challenged the traditional view of the world-economy as a hierarchical system with a clear division between core and periphery countries. However, Frank's insights into the relationship between development and underdevelopment remain relevant today. The Third World countries are still largely dependent on the core countries for capital, technology, and markets. And the core countries still benefit from the exploitation of the periphery countries. 

The challenge for the Third World countries is to break out of the vicious circle of underdevelopment and achieve genuine development. This will require a fundamental transformation of the world-economy and the creation of a more equitable system that benefits all countries, not just the rich countries