Critique of Dependancy Theory

364 Words2 Pages
Dependency theorists have been criticized by free market economists. They argue that without the foreign interaction in Africa some vices could be very common. Corruption. State owned industries have a higher rate of corruption than the privately owned companies. Most of these private owned companies are owned by the developed nations. Lack of competition. By subsidization of local African industries and preventing outside imports these companies may have less initiative to improve their products to try to become more efficient in their processes. Lack of essential capital. Most nations at the periphery have minerals but they lack the necessary manpower and skills to utilize them. Without the intervention of these developed nations, these countries cannot be in a position to explore their minerals such as oil since it requires expensive machinery and manpower The international criminal court (ICC).It acts as a body for maintaining peace and stability in Africa, this is because it sees to it that no crimes against humanity are committed. In Kenya during the 2013 general elections there was peace mainly because most leaders feared being implicated with violence. The international monetary fund and the World Bank. They play a major role in regulating the value of the different currencies in the world. They also give loans and grants to nations at the periphery to assist them improve their economies. Competitiveness and employment. The World Bank and the international monetary fund assist countries at the periphery to diversify their economies and generate jobs. These efforts make it easier for businesses to operate in Africa. Vulnerability. Most African nations are poor thus the Africans in these nations are directly affected by shocks of economic and health problems. The international monetary fund helps by strengthening the public policies to enable nations at
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