DEPENDENT ACCUMULATION and UNDERDEVELOPMENT by the Same Author
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DEPENDENT ACCUMULATION AND UNDERDEVELOPMENT By the same author CAPITALISM AND UNDERDEVELOPMENT IN LATIN AMERICA LATIN AMERICA: UNDERDEVELOPMENT OR REVOLUTION LUMPENBOURGEOISIE: LUMPENDEVELOPMENT SOCIOLOGY OF DEVELOPMENT AND UNDERDEVELOPMENT OF SOCIOLOGY ON CAPITALIST UNDERDEVELOPMENT WORLD ACCUMULATION 1492-1789 DEPENDENCE AND UNDERDEVELOPMENT: LATIN AMERICA'S POLITICAL ECONOMY (with Dale Johnson and James Cockcroft) MEXICAN AGRICULTURE 1521-1630: TRANSFORMATION OF THE MODE OF PRODUCTION REFLEXIONES SOBRE LA CRISIS ECONOMICA ECONOMIC GENOCIDE IN CHILE AMERICA LATINA: FEUDALISMO 0 CAPITALISMO? (with Rodolofo Puiggros and Ernesto Laclau) ASPECTOS DE LA REALIDAD LATINOAMERICANA (with Orlando Caputo, Roberto Pizarro and Anibal Q.uijano) Q.UALE 1984? (with Samir Amin and Hosea Jaffe) CRISIS: THE WORLD ECONOMIC SYSTEM TODAY REFLECTIONS ON THE WORLD ECONOMIC CRISIS DEPENDENT ACCUMULATION AND UNDERDEVELOPMENT Andre Gunder Frank © Andre Gunder Frank 1978 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without permission First edition 1978 Reprinted 1981, 1982 Published by THE MACMILLAN PRESS LTD London and Basingstoke Companies and representatives throughout the world British Library Cataloguing in Publication Data Frank, Andre Gunder Dependent Accumulation and Underdevelopment 1. Underdeveloped Areas 2. Underdeveloped areas - Saving and investment 3. Saving and investment I. Title 330.9'172'4 HC59.7 ISBN 978-0-333-23951-3 ISBN 978-1-349-16014-3 (eBook) DOI 10.1007/978-1-349-16014-3 The paperback edition of this book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher's prior consent, in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the ~ubsequent purchaser To the Memory of nry student, friend and comrade in Chile DAGOBERTO PEREZ VARGAS who left our theoretical concerns behind to fight and die heroically to end accumulation through dependence, underdevelopment and exploitation Contents Preface xi Acknowledgements XVIII I Introductory Questions 1 1. The Question of'Internal' v. 'External' Determination 2 2. The Question of Periodisation 7 3· Questions of Production and Exchange IO 2. World Capital Accumulation, Trade Patterns and Modes of Production, 1500-1770 13 1. Trade Triangles 14 2. Differential Transformation of Modes of Production in Asia, Africa and Latin America 1 7 3 On the Roots of Development and Underdevelopment in the New World: Smith and Marx v. the Weberians 25 I. On the Weber Thesis 25 A. Significance of the Weber Thesis 25 B. The Protestant Ethic and the Spirit of Capitalism 28 C. Unorthodox Weberian Survivals 30 2. On Adam Smith and the New World 33 3· On Karl Marx and Capital Accumulation 38 4· On World Accumulation, International Exchange, and the Diversity of Modes of Production in the New World 43 A. Mining Economies in Mexico and Peru 45 B. Yeoman Farming in the Spanish Possessions 4 7 C. Transformation: The Case of Barbados 50 D. The Plantation System in the Caribbean and Brazil 52 E. The U.S. South: Slave Plantations v. Farming 55 F. The U.S. North-east: Farming v. Foreign Trade 58 G. Epilogue-Delayed by Two Centuries 68 vii Vlll Contents 4 The Industrial Revolution and Pax Britannica, I no- I87o 70 I. Metropolitan Capital Accumulation and Industrial Revolution in Europe 7 I 2. Bourgeois Industrial Policy and the New International Division of Labour 7 5 3· North America 79 4· Latin America 82 5· India 87 5 That the Extent of the Internal Market is Limited by the International Division of Labour and the Relations of Production 92 I. On Trade 93 A. On Classicals and Reformers 93 B. On Comparative Advantage and Free Trade 94 C. On Deteriorated Terms of Trade IOI D. On Unequal Exchange I03 2. On Markets IIO E. On Dualism IIO F. On Staple Theory II2 G. On Linkages Il3 H. On Developing the Internal Market I2I I. On Infant Industry and Import Substitution I28 J. On the Division of Labour and Technological Gaps I30 3· On Production and Accumulation I34 K. On Economic Sectors and Classes I34 6 Imperialism and the Transformation of Modes of Pro- duction in Asia, Africa and Latin America, I870-I930 I40 I. Rosa Luxemburg on Imperialist Struggle against Nat- ural and Peasant Economy I42 2. Imperialism in Asia I46 3· Imperialism and the Arab World I 54 4· Imperialism and Africa I 57 5· Imperialism in Latin America I64 7 Multilateral Merchandise Trade Imbalances and Uneven Economic Development I72 I. Patterns of World Trade Imbalances I73 Contents IX 2. Colonial and Semi-Colonial Capital Contributions to Metropolitan Accumulation and Overseas Investment 189 3· Statistical and Methodological Appendix 199 Bibliography 209 Index 221 Preface This book is an attempt to approach an explanation of under development through the analysis of the production and exchange relations of dependence within the world process of capital accumulation. Hence the choice of its title. We distinguish three main stages or periods in this world embracing process of capital accumulation and capitalist develop ment: mercantilist (I500-I77o), industrial capitalist (I770-I87o), and imperialist (I 870-I 930). Each of these periods is examined in a historical chapter that first sets out important developments in the world process of capital accumulation, concentrating especially on the 'exchange' relations between the metropolis and the periphery, and then goes on to analyse the associated transformation of the dependent 'internal' relations ofproduction and the development of underdevelopment in each of the principal regions of Asia, Africa and the Americas. Each of these 'historical' chapters is followed by a 'theoretical' one which discusses an important problem of socio economic theory (and of historical fact) that arises out of each of these periods: why different parts of the New World of the Americas -specifically the mining and plantation regions on the one hand and the north-eastern colonies in North America on the other-took different paths of underdevelopment and development during the mercantilist period; why the now underdeveloped countries did not experience the development of an internal market similar to that of Western Europe and the new settler regions in North America and Australia during and since the period of industrial capitalism; and how the international division oflabour and specifically the mostly neglected merchandise export surplus from the now underdeveloped regions-contributed to uneven world capitalist development and to capital accumulation in Western Europe and to investment by the latter in the United States, Canada and Australia. The bulk ofthe text was written in Chile in I969/70 and most of the remainder was revised there in I972/73· The following xi Xll Preface circumstances influenced its preparation, and the reader should keep them in mind. The author had previously contributed to the development of the 'dependence' approach to underdevelopment with his Capitalism and Underdevelopment in Latin America (written in 1963-65 and published in various editions in 1967-71, hereinafter referred to as Capitalism) and in other writings. In 1968/69, I sought to extend this 'dependence' approach to the study of other areas as well by preparing/editing with Said A. Shah a bulky Reader on Underdevelopment, emphasising dependence in Asia, Africa, the Arab World and Latin America. The first and second drafts of the present text were written in October 1969 and February 1970 and intended as the theoretical introduction to the first- historical volume of the Reader (while a second volume on contemporary underdevelopment was in preparation). This emphasis on de pendence and its analysis in the historical experience of each of the major regions of the 'third world' still marks this book as published today. At the same time, the analysis of dependence by the present author and others had become the object of increasing criticism. Critics argued that our approach ( 1) emphasised 'external' ex change relations to the virtual exclusion of 'internal' modes of production; (2) that it did not take adequate account of the differences in various parts of Latin America and the world or of different stages of development; and (3) that it did not really achieve a dialectical dynamic analysis of the worldwide historical process of capital accumulation in which both metropolitan economic development and dependent peripheral underdevelop ment should be analysed as part of a single process. The most common criticism was the first one, which was reiterated in a critique of the second draft of the present text itself by Giovanni Arrighi. Samir Amin, who at the time was writing his own Accumulation on a World Scale criticised the second draft as well for failing to differentiate and analyse the major stages of capitalist development adequately (and for 'seeing everything through Latin American eyes'). The third criticism was most particularly the author's own and reflected my conviction, already expressed in the Preface to Capitalism, that it is necessary to study the historical development of the single world capitalist system. These inadequacies and critiques led to the preparation in july 1970 of a third qraft (comprising 160 single-spaced pages that incorporated material from the previous qrafts), in which I Preface Xlll attempted to face all three of the above critiques and challenges simultaneously: ( 1) To analyse dependence through the 'internal' relations if not the modes of production, accounting for their mutual determination of and relations to the 'external' relations of exchange, particularly though not exclusively with the metropolis; (2) to examine the 'internal' determining dynamic of the historical process of capital accumulation or de-accumulation and its distin guishable stages of development or underdevelopment; and (3) to place all these elements within the single historical process of the development of a single world capitalist system.