Introduction
Since World War II there has been an ongoing debate about whether external or
internal factors is the main reason for underdevelopment and lack of growth in
many countries. The general views have changed back and forth with focus on
market failure and state failure. Since the fall of the Soviet block in 1989,
liberalism and open markets economics have dominated the general view of
scholars, even though today it has shifted back some since liberalism’s peek in
the 1980s. The pragmatic neo-liberalism influenced by the post Washington
consensus is the most advocated development theory today heavily promoted by
both WTO and IMF. However, trade liberalization demands strong institutional
and political foundation in order to not lead to exploiting side-affects. The
current progress in Africa, especially in the Sub Sahara region, is a good example
that trade liberalization does not necessarily lead to increased development, but
rather to increased inequalities and underdevelopment. This paper will
investigate the exploiting side effects of trade liberalization using Africa as an
empirical evidence and argue for the core thesis that underdevelopment is
primarily due to external factors.
The paper will start to classify development using Atul Kohli’s definition of just growth. His understanding of just growth will be the foundation when discussing underdevelopment. The second section will look at the theoretical approach of development using Andre Gunder Frank’s dependency theory and W.W Rostow’s five stages of economic growth. I will highlight and contrast the arguments of “external causation theory” and “Internal causation theory”. Further, I will use Africa as an empirical example, especially the sub-Sahara region, to see how the neo-liberal doctrine has failed to provide development and is actually leading to underdevelopment. This section will based on Eyoh’s and Sandbrook’s ideas of pragmatic neo-liberalism and Bond’s view on resource extraction in Africa. The role of the WTO, with special focus on the Uruguay round, will also be critically observed in order to draw some conclusion about the future for Africa’s underdevelopment. Lastly the paper will be summarized and concluded.
The paper will start to classify development using Atul Kohli’s definition of just growth. His understanding of just growth will be the foundation when discussing underdevelopment. The second section will look at the theoretical approach of development using Andre Gunder Frank’s dependency theory and W.W Rostow’s five stages of economic growth. I will highlight and contrast the arguments of “external causation theory” and “Internal causation theory”. Further, I will use Africa as an empirical example, especially the sub-Sahara region, to see how the neo-liberal doctrine has failed to provide development and is actually leading to underdevelopment. This section will based on Eyoh’s and Sandbrook’s ideas of pragmatic neo-liberalism and Bond’s view on resource extraction in Africa. The role of the WTO, with special focus on the Uruguay round, will also be critically observed in order to draw some conclusion about the future for Africa’s underdevelopment. Lastly the paper will be summarized and concluded.
International Political Economy - CBS 2
Classifying Development
“There is no consensus to what Development means or requires” Cherry Gertzl1. Since World War II the ability to conceptualize development has become increasingly relevant. In the direct post-war period, development was usually defined in terms of economic growth, usually indicated by a country’s Gross National Product (GNP). It was argued that economic growth would lead to a trickle-down affect, meaning that economic growth was a necessary condition and requirement for social improvements such as improvements in inequality. The scientific support comes from Kuznets curve, which plots a positive relationship between economic growth and equality. 2
The usage of solely economic growth as indicator for development received critique for being too restrictive3. Many scholars started to rise concerns that social indicators such as welfare and poverty was left out. Instead scholars started to point out criteria’s for development, which has lead to the creation of UN’s Human development index (HDI). It includes life expectancy, education and income. Through this index, the UN categorizes countries in three groups after their HDI value. However, classification after only economic growth and income still exist and are of practical importance in the aid business. The World Bank uses gross national income per capita when ranking countries as low-income, middle-income or high-income countries. Low-income countries are eligible for more aid than high-income countries4.
Today one of the most prominent scholars in development and growth is Atul Kohli, professor at Princeton University. He moves away from the solely economic perspective of development and instead refers to a broader concept of development including economic growth, fair distribution and democracy. He refers to this notion of development as just growth5. Kohli includes a political dimension of development by including democracy. Stable democratic
1 O’Brien 310 2 O’Brien 311 3 O’Brien 311 4 Harris 27
5 Kohli 1-2
“There is no consensus to what Development means or requires” Cherry Gertzl1. Since World War II the ability to conceptualize development has become increasingly relevant. In the direct post-war period, development was usually defined in terms of economic growth, usually indicated by a country’s Gross National Product (GNP). It was argued that economic growth would lead to a trickle-down affect, meaning that economic growth was a necessary condition and requirement for social improvements such as improvements in inequality. The scientific support comes from Kuznets curve, which plots a positive relationship between economic growth and equality. 2
The usage of solely economic growth as indicator for development received critique for being too restrictive3. Many scholars started to rise concerns that social indicators such as welfare and poverty was left out. Instead scholars started to point out criteria’s for development, which has lead to the creation of UN’s Human development index (HDI). It includes life expectancy, education and income. Through this index, the UN categorizes countries in three groups after their HDI value. However, classification after only economic growth and income still exist and are of practical importance in the aid business. The World Bank uses gross national income per capita when ranking countries as low-income, middle-income or high-income countries. Low-income countries are eligible for more aid than high-income countries4.
Today one of the most prominent scholars in development and growth is Atul Kohli, professor at Princeton University. He moves away from the solely economic perspective of development and instead refers to a broader concept of development including economic growth, fair distribution and democracy. He refers to this notion of development as just growth5. Kohli includes a political dimension of development by including democracy. Stable democratic
1 O’Brien 310 2 O’Brien 311 3 O’Brien 311 4 Harris 27
5 Kohli 1-2
International Political Economy - CBS 3
governments may create secure property rights and a favorable investment
climate generating higher economic growth. On the other hand, Kohli underlines
the complexity and problematic process of creating democracy and understands
that new democracies are not always stable and that they enable interest groups
to infiltrate policies that may not be desirable from the point of economic
growth. The general notion of just growth is improvements in standards of
living and reduction in poverty. This paper will use Kohli’s concept of just
growth as the foundation when discussing development and underdevelopment,
and not only focus on economic growth or HDI values.
Theoretical Approach
The theoretical approach of underdevelopment is historically derived from Franks critical dependency theory and W.W. Rostow’s liberal stages of modernization. This has lead to a debate between “External causation theory” versus “Internal causation theory”6 when talking about the causes of underdevelopment. In this section we will contrast the two theories and discuss their different approaches of internal versus external factors of underdevelopment
Proponents of “internal causation theory” assume that a nations lack of development is a result from its failure to use its resources to stimulate modern economic growth. The reason of underdevelopment is derived from society’s failure to establish required institutional structure, showing that the solution to underdevelopment exists on domestic level. W.W. Rostow explains in his work “The stages of Economic Growth: A non-Communist manifest (1960) five stages of growth. Rostow argues that all societies, in their present economic situation, are within one of these five stages and have to go through them in their attempt to develop7. The first stage is “traditional society” in which society has a limited production structure and production technology, creating a ceiling of maximum output per head. Society is based on agriculture and generally has low economic
6 O’Brien 316
7 W.W Rostow 48
Theoretical Approach
The theoretical approach of underdevelopment is historically derived from Franks critical dependency theory and W.W. Rostow’s liberal stages of modernization. This has lead to a debate between “External causation theory” versus “Internal causation theory”6 when talking about the causes of underdevelopment. In this section we will contrast the two theories and discuss their different approaches of internal versus external factors of underdevelopment
Proponents of “internal causation theory” assume that a nations lack of development is a result from its failure to use its resources to stimulate modern economic growth. The reason of underdevelopment is derived from society’s failure to establish required institutional structure, showing that the solution to underdevelopment exists on domestic level. W.W. Rostow explains in his work “The stages of Economic Growth: A non-Communist manifest (1960) five stages of growth. Rostow argues that all societies, in their present economic situation, are within one of these five stages and have to go through them in their attempt to develop7. The first stage is “traditional society” in which society has a limited production structure and production technology, creating a ceiling of maximum output per head. Society is based on agriculture and generally has low economic
6 O’Brien 316
7 W.W Rostow 48
International Political Economy - CBS 4
growth. Landowners have the biggest amount of power in society. Eventually
the society would enter the second stage called “Precondition for Take-off
stage” in which society starts to get ready for the transformation into the
modern stage. The society explores new production functions and starts to
engage in industry. Education becomes more centralized which leads to more
focus on economic and political progress. When the preconditions are met the
society enters into the third stage called “the take off” which resembles the
industrial revolution. Society experiences rapid continuous growth as
agriculture and industries develop fast. A new class of entrepreneurs emerges.
After the take off the society enters the fourth stage called “the drive of
maturity”. Society starts to develop modern technology and gets engaged in
international economics. International trade becomes more important as more
complex products are demanded. Society shifts away from heavy engineering. In
the fifth stage “the age of mass-consumption” real income per person increases
rapidly together with high population growth. Knowledge is spread faster and
specialization becomes more important. Demand for food, shelter and cloths
increase as well. Rostow finishes off with a futuristic stage called “beyond
consumption” in which he highlights the complexity in determining future
patterns.8
The important features of W.W. Rostow’s stages of economic growth are that he believes that all societies go through these stages in their development and that all factors of growth are domestic. Failure to develop from one stage to another is due to domestic failure in creating the requirements of the stage.
Proponents of “External causation theory” explain underdevelopment as a result from external factors constraining the country from development. Andre Gunder Frank in his work “The Development of Underdevelopment” starts out by contradicting W.W Rostow, arguing that the historical context of colonial and underdeveloped countries differs radically and that it is ignorant to believe that the past and present of underdevelopment countries resembles develop countries earlier stages of development. Today’s develop countries have never
8 W.W Rostow 48-53
The important features of W.W. Rostow’s stages of economic growth are that he believes that all societies go through these stages in their development and that all factors of growth are domestic. Failure to develop from one stage to another is due to domestic failure in creating the requirements of the stage.
Proponents of “External causation theory” explain underdevelopment as a result from external factors constraining the country from development. Andre Gunder Frank in his work “The Development of Underdevelopment” starts out by contradicting W.W Rostow, arguing that the historical context of colonial and underdeveloped countries differs radically and that it is ignorant to believe that the past and present of underdevelopment countries resembles develop countries earlier stages of development. Today’s develop countries have never
8 W.W Rostow 48-53
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been underdeveloped. Frank’s basic notion is that it is a misconception that
underdevelopment is a product or reflection of a country’s own economic,
political, social and cultural characteristics or structures as Rostow would have
argued9. People fail to see that the capitalist system, an external factor, as a
whole is accountable for development in some of its parts and
underdevelopment in others. Underdevelopment is due to a historical
relationship between the metropole state and a satellite community. It has its
origin in the colonial period in South America when the metropole cities used
and exploited the peasant satellite communities. The metropole sucks out
economic surplus from the satellite community and brings it back to the
metropole. Frank argues that the same historical relationship exists between
colonial powers and underdeveloped countries, which ultimately leads to the
development of metropoles and underdevelopment of satellites. By observing
the historical context of metropoles and satellites, Frank makes several main
theses: (1) in contrast to the world development of the world metropolis which is
no one’s satellite, the development of national and other subordinate metropoles is
limited by their satellite status10; (2) The satellites experience their greatest
economic development and especially their most classically capitalist industrial
development if and when their ties to their metropole are weakest.11 ; (3) the
regions which are the most underdeveloped and feudal-seeming today are the ones
which had the closest ties to the metropolis in the past12.
Frank’s dependency theory ultimately focuses on the underdevelopment in South America but has later been used in the debate about global underdevelopment. In his text he uses empirical evidence from South America to support his theses but these will not be presented in the paper, instead I will try to use his theses to explain the underdevelopment in Africa today. Frank actually had several more theses but since he wrote his critical dependency theory in 1969, my argumentation is that only these three theses are important in mine contemporary development debate.
9 Frank 77 10 Frank 80 11 Frank 80 12 Frank 82
Frank’s dependency theory ultimately focuses on the underdevelopment in South America but has later been used in the debate about global underdevelopment. In his text he uses empirical evidence from South America to support his theses but these will not be presented in the paper, instead I will try to use his theses to explain the underdevelopment in Africa today. Frank actually had several more theses but since he wrote his critical dependency theory in 1969, my argumentation is that only these three theses are important in mine contemporary development debate.
9 Frank 77 10 Frank 80 11 Frank 80 12 Frank 82
International Political Economy - CBS 6
The distinctions between the two theories are relatively obvious but are still
worth highlighting. Dependency theorist argues that lack of development is not
due to lack of domestic institutional structures or lack of other developmental
requirements, but rather a direct consequence of economic exploitation13. The
development of some countries is due to the underdevelopment of others as
society is a zero-sum game. Further, while Modernization theory predicts that all
societies would successfully develop through adaption of particular practices14,
dependency theory argues that development is impossible within an
international capitalist system.
Underdevelopment in Africa
Even though both “external causation theory” and “Internal causation theory” have empirical evidence to support their arguments, the historical context and recent development of several African countries, especially the sub Sahara region, indicates the shortcomings of the “Internal causation theory”. Scholars Richard Sandbrook and Dickson Eyoh criticize the pragmatic neo-liberal attempt to develop Africa and argue that external effects of globalization and liberalization hinder Africa from experiencing just growth. Even though pragmatic neo-liberalism is heavily influenced by Post Washington Consensus and is more sophisticated than the purer neoclassical model it replaced, it does not offer a reliable guide to development15. The pragmatic neo-liberal development strategy has had meager results, which the proponents of “internal causation theory” have disclaimed as poor policymaking, corruption, political instability or other domestic failures16. However, these “failing” political and institutional structures was heavily influenced and affected by the colonial historical context, the existing inexorable global market economy and its side effects. Eyoh and Sandbrook argue that there is no other region in the world where the pragmatic neo-liberalism is more forced upon. As Sub-Saharan countries have become heavily dependent on foreign aid from the IMF, World
13 O’Brien 316
14 O’Brien 317
15 Eyoh Sandbrook 227 16 Eyoh Sandbrook 228
Underdevelopment in Africa
Even though both “external causation theory” and “Internal causation theory” have empirical evidence to support their arguments, the historical context and recent development of several African countries, especially the sub Sahara region, indicates the shortcomings of the “Internal causation theory”. Scholars Richard Sandbrook and Dickson Eyoh criticize the pragmatic neo-liberal attempt to develop Africa and argue that external effects of globalization and liberalization hinder Africa from experiencing just growth. Even though pragmatic neo-liberalism is heavily influenced by Post Washington Consensus and is more sophisticated than the purer neoclassical model it replaced, it does not offer a reliable guide to development15. The pragmatic neo-liberal development strategy has had meager results, which the proponents of “internal causation theory” have disclaimed as poor policymaking, corruption, political instability or other domestic failures16. However, these “failing” political and institutional structures was heavily influenced and affected by the colonial historical context, the existing inexorable global market economy and its side effects. Eyoh and Sandbrook argue that there is no other region in the world where the pragmatic neo-liberalism is more forced upon. As Sub-Saharan countries have become heavily dependent on foreign aid from the IMF, World
13 O’Brien 316
14 O’Brien 317
15 Eyoh Sandbrook 227 16 Eyoh Sandbrook 228
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Bank and other multilateral agencies, these organizations have received
enormous influence in the region.
The historical context of colonial Africa is crucial in order to understand the underdevelopment of many African countries. The history of colonialism in Africa is very easy to link to Frank’s dependency theory from the late 60th. After the Second World War, the majority of African nations declared independence and the ruling elite was confronted with the dual challenge of promoting both nation-state building and economic development. The new states had no middle class as previous ruling elite actively held their development back in order to not cause political disruptions, it was heavily dependent on exporting primary resources, a lack of functioning independent institutions, and was governed by new rulers that had no experiences of governing a country17. As the colonial rulers had favored European firms over Africans, there was a lack of entrepreneurs, which could have shaped a post-colonial industrialization. Further, in the postcolonial cold war era many new absolute rulers were favored and supported by the either USA or USSR in their attempts to gathers allies, leading to more suppression of entrepreneurs and a middleclass that is crucial for industrialization18. In the mid 70th, most countries in Africa went bankrupt due to external crises, which lead to aid response from the World Bank and IMF with requirements of liberalization.
The historical context of Africa supports both Frank’s first and second thesis that because these colonies’/states’ was closely linked to their metropole during the colonial period; as a consequence they are today very underdeveloped. Their institutional and political structure was heavily dependent on their metropole relation and there was a lack of middle class due to the suppression from the metropole.
After the crises in Africa where many countries virtually went bankrupt, western agencies aided them with the requirement that they opened up their markets. The neo-liberal doctrine argues that liberal and market oriented economics will
17 Eyoh & Sandbrook 233
18 Eyoh & Sandbrook 233-234
The historical context of colonial Africa is crucial in order to understand the underdevelopment of many African countries. The history of colonialism in Africa is very easy to link to Frank’s dependency theory from the late 60th. After the Second World War, the majority of African nations declared independence and the ruling elite was confronted with the dual challenge of promoting both nation-state building and economic development. The new states had no middle class as previous ruling elite actively held their development back in order to not cause political disruptions, it was heavily dependent on exporting primary resources, a lack of functioning independent institutions, and was governed by new rulers that had no experiences of governing a country17. As the colonial rulers had favored European firms over Africans, there was a lack of entrepreneurs, which could have shaped a post-colonial industrialization. Further, in the postcolonial cold war era many new absolute rulers were favored and supported by the either USA or USSR in their attempts to gathers allies, leading to more suppression of entrepreneurs and a middleclass that is crucial for industrialization18. In the mid 70th, most countries in Africa went bankrupt due to external crises, which lead to aid response from the World Bank and IMF with requirements of liberalization.
The historical context of Africa supports both Frank’s first and second thesis that because these colonies’/states’ was closely linked to their metropole during the colonial period; as a consequence they are today very underdeveloped. Their institutional and political structure was heavily dependent on their metropole relation and there was a lack of middle class due to the suppression from the metropole.
After the crises in Africa where many countries virtually went bankrupt, western agencies aided them with the requirement that they opened up their markets. The neo-liberal doctrine argues that liberal and market oriented economics will
17 Eyoh & Sandbrook 233
18 Eyoh & Sandbrook 233-234
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increase economic growth, which in turn leads to reduction of poverty and
improved inequalities. This has lead to the rejection of state-led development
and loose monetary and fiscal policies in the African countries. Hernandez-Cata
argues, “Africa has little to lose from globalization and much to gain, provided it is
accompanied by policy changes in several areas”. However, Patrick Bond shows in
his analysis “Resource Extraction and African Underdevelopment” that the
effects of modern neo-liberalism has not lead to a lot of benefits for Africa, but
rather severe underdevelopment. Bond shows that Africa is today getting
progressively poorer as income per capita is today lower than in the 50s and
60s19. Christian Aid argues that there is a correlation between market openness
and worsening of poverty in Africa due to extremely volatile commodity prices20.
Recent data shows that per capital incomes between the richest countries and
the poorest countries in the world (including many Sub Saharan countries),
using an equal population share has widened, from 30 to 1 in 1960 to 74 to 1 in
1999, with still growing numbers21. Further, due to removal of protectionism
many infant industries and manufacturing jobs disappeared. Overall, local
producers are selling less today than they were before trade was liberalized22.
Bond argues that Africa’s productive potential drastically has been reduced as
trade liberalization slaughtered many local industries, including domestic
farming.
There is also little hope for improvements in Africa’s export position with big focus on agricultural and textiles. Recent trade rules have created further constraints on Africa’s development. The agreement in the Uruguay round of GATT and WTO did not favor Africa’s interest. Trade rules banned significant protection on infant industries and limited preferences that the region enjoyed by the EU. Further, western developed countries were sill allowed to prolong their high tariffs on textiles and agricultural imports that compete with domestic production, making international competition for Africa’s agriculture and textile production very tough.
19 Bond 6
20 Bond 6
21 Eyoh and Sandbrook 245 22 Bond 9
There is also little hope for improvements in Africa’s export position with big focus on agricultural and textiles. Recent trade rules have created further constraints on Africa’s development. The agreement in the Uruguay round of GATT and WTO did not favor Africa’s interest. Trade rules banned significant protection on infant industries and limited preferences that the region enjoyed by the EU. Further, western developed countries were sill allowed to prolong their high tariffs on textiles and agricultural imports that compete with domestic production, making international competition for Africa’s agriculture and textile production very tough.
19 Bond 6
20 Bond 6
21 Eyoh and Sandbrook 245 22 Bond 9
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Eyoh and Sandbrook conclusion is to question how then will an export
orientation spur sustained growth in Africa? Considering the limited
development of non-traditional exports during the 15 years of adjustment, one
cannot be optimistic that Africa will gain from international trade even in the
long run23. And with the harsh side-affect of increased inequality, increased
insecurity and turbulence how can one argue that Africa has little to lose from
neo-liberal globalization?24
The conclusion of Africa’s historical context and present situation is that the proponents of “internal causation theory” are to a degree correct when saying that underdevelopment is due to political and institutional structural failure. However, these domestic failures are the direct consequence of a historical capitalistic system and are hindered from developing by the modern neo-liberal economics. The historical colonial relationship between Africa’s nations and western powers created the failing institutional foundation, that together with the post-colonial cold war era eventually lead to economic crises. The following consequence of forced pragmatic neo-liberal market economics has further hindered Africa from developing. These forced structural adjustments have done little to improve the weak production structures, high external dependency and institutional weaknesses that are the root of Africa’s economies slow growth25
The open market and unfavorable global trade rules have lead to exploitation of Africa and increased underdevelopment. This has lead to little hope for improvements in Africa’s export position, which is crucial in its potential, export oriented growth. As data above has shown, liberalization has lead to increased income inequalities between the world’s richest countries and the world poorest countries (many sub-Saharan countries). As long as their exist an ignorance for the side effects of the neo-liberal economics in Africa, development and just growth is seen as relatively far fetched, even in the long run. External factors are the foundation for the underdevelopment in Africa and are still hindering development by allowing more develop countries to exploit them. Even though
23 Eyoh & Sandbrook 248 24 Eyoh & Sandbrook 248 25 Eyoh 240
The conclusion of Africa’s historical context and present situation is that the proponents of “internal causation theory” are to a degree correct when saying that underdevelopment is due to political and institutional structural failure. However, these domestic failures are the direct consequence of a historical capitalistic system and are hindered from developing by the modern neo-liberal economics. The historical colonial relationship between Africa’s nations and western powers created the failing institutional foundation, that together with the post-colonial cold war era eventually lead to economic crises. The following consequence of forced pragmatic neo-liberal market economics has further hindered Africa from developing. These forced structural adjustments have done little to improve the weak production structures, high external dependency and institutional weaknesses that are the root of Africa’s economies slow growth25
The open market and unfavorable global trade rules have lead to exploitation of Africa and increased underdevelopment. This has lead to little hope for improvements in Africa’s export position, which is crucial in its potential, export oriented growth. As data above has shown, liberalization has lead to increased income inequalities between the world’s richest countries and the world poorest countries (many sub-Saharan countries). As long as their exist an ignorance for the side effects of the neo-liberal economics in Africa, development and just growth is seen as relatively far fetched, even in the long run. External factors are the foundation for the underdevelopment in Africa and are still hindering development by allowing more develop countries to exploit them. Even though
23 Eyoh & Sandbrook 248 24 Eyoh & Sandbrook 248 25 Eyoh 240
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internal adjustments must also take place in order to see development, the
external factors must change first allowing for internal restructuring.
Final Remarks and Summery
Since World War Two there has been an ongoing debate on market failure versus state failure and external versus internal factors of development and underdevelopment. The concept of development has taken many shapes but Atul Kohli described it as just growth including economic growth, fair distribution and democracy. There exists different theoretical argumentation of how to develop and experience just growth; the most prominent ones are dependency theory and modernization theory, which is the foundation for the “External causation theory” and “Internal causation theory”. By using Africa as an empirical example one can see that it’s historical context together with a forced economic development strategy undermines the “Internal causation theory”. The colonial stage shows how the African nations’ previous metropole and satellite relationship has affected them to underdeveloped when becoming independent. Consequently, the western world forced neo-liberal doctrines upon the African nations in order to spur economic growth, which would lead to reduction in poverty and improvements in inequality. However, Patrick Bond, Eyoh and Sandbrook all shows that the neo-liberal system has lead to further underdevelopment and bigger inequalities between the rich and poor countries. Africa doesn’t have the institutional and political structure to flourish from open markets and trade liberalization. It has instead lead to decay and constant exploitation. In order to adjust the internal structure failures, the external exploiting liberal system must change first allowing African nations the possibility to develop without dependency and exploitation.
Final Remarks and Summery
Since World War Two there has been an ongoing debate on market failure versus state failure and external versus internal factors of development and underdevelopment. The concept of development has taken many shapes but Atul Kohli described it as just growth including economic growth, fair distribution and democracy. There exists different theoretical argumentation of how to develop and experience just growth; the most prominent ones are dependency theory and modernization theory, which is the foundation for the “External causation theory” and “Internal causation theory”. By using Africa as an empirical example one can see that it’s historical context together with a forced economic development strategy undermines the “Internal causation theory”. The colonial stage shows how the African nations’ previous metropole and satellite relationship has affected them to underdeveloped when becoming independent. Consequently, the western world forced neo-liberal doctrines upon the African nations in order to spur economic growth, which would lead to reduction in poverty and improvements in inequality. However, Patrick Bond, Eyoh and Sandbrook all shows that the neo-liberal system has lead to further underdevelopment and bigger inequalities between the rich and poor countries. Africa doesn’t have the institutional and political structure to flourish from open markets and trade liberalization. It has instead lead to decay and constant exploitation. In order to adjust the internal structure failures, the external exploiting liberal system must change first allowing African nations the possibility to develop without dependency and exploitation.
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