External Factors and the Failure of the Society to Achieve Economic Growth - Asia - Coursework Example

Dependency Theorists Name Id Course Instructor’s name Institution Affiliation Location Date Dependency Theorists Countries have dependent on each other for their development despite the challenges that the developing countries have experienced in this sharing. Dependency of these countries has been affected by the relationships that the countries have shown towards each other for decades (Ferraro, 2008). The development within Asian countries has greatly been influenced by the support that the States within the collaboration have towards each other. The development within the countries despite the collaboration has been greatly influenced by export-orientation and transnational investments with the biggest part of the influence being from the United States of America an idea that has greatly affected and criticised the understanding of the premises of theory of dependency (Inglehart and Welzel, 2009). This paper provides the correlation that exists between the external factors and the failure of the society to achieve economic growth within the social set up with the context being on the Asian countries. It then proceeds to prove that the Asian countries primarily developed due to the export-orientation and transnational investments through the help of the political understanding and helping of the entire community and dependency going contrary to the premises of theory of dependency. It greatly shows the role that dependency have on the development and the success of the countries in relation to the level of dependency that the country expresses though with keen interest on the life of the entire community. Different debates and arguments regarding the dependency theory are put forward in ensuring that the efficiency of the theory in the society development is discussed. It shows that the dependency premises have resulted to the existence of poor communities and societies as well as countries which needs to be evaluated to ensure success in implementation. Correlation of the dependency theory between external factors and the failure of a society From the theory, it is argued that the developing countries or the poor societies only benefit from small aspects of their resources which they export to different states. The argument is that despite the resources being produced within the poor countries, the refining and the manufacturing of the products takes place on the developed countries which later became expensive and generate too much profit than the initial capital (Adams, 2009). For example, when a country mines a resource and it has low capital or capability to process the product, it would export the product to the developed country for the refining. It is at the time of export that the product is sold at a cheaper price and the country or society cannot use the resource developed form the sale to develop. Once the product is manufactured, it is sold back to the society or the community at expensive terms which only benefits the community. The dependency aspect in this case only motivates the development of the diverse countries not the poor community (Lacher and Nepal, 2010). The sale of primary products earns the father countries little capital which cannot be used to afford the imports for the products in the same countries maintaining poverty in the same countries. The best approach that should be used in by the poor countries is the substitution of the imports to balance between the export and imports. The argument of the premise is that the overall income that is realized only benefit the country that the producers depends on rather than the entire generation which is producing the product. The sale of these products is controlled within the market which brings us to the second premises point. Secondly, the external forces within the external forces only have singular importance to the economic activities within the dependent states (Ferraro, 2008). The external forces in this context include factors like multinational corporations, international commodity markets and the foreign assistance. The market only considers the product developed to have the same process of manufacturing and should be sold at the price that is accepted by all involved in the market. This idea kills the spirit of motivation within the developing countries as well as those who depend on other countries for production. The market is based on the common pricing of the goods which only favours the well developed countries (Lacher and Nepal, 2010). The commitment that this theory brings to the society is the one that is concerned with the social well-being of the society rather than the importance economic growth. The social being is the driving force and the pricing and regulation of the price are done to motivate the well-being rather to motivate the economic success (Adams, 2009). The market share and the pricing under this category is based on benefiting the entire country rather than a single society and with the wrong and imbalance distribution of the resources as well as the increase in the number of dependant, the society remain poor as few individuals receive the benefits. The theory ensures that the lives and health of the citizens are looked into while the economy of the society remains spoiled. The international market share sets pricing standards which the poor countries does not benefit from as they get little profit from the business which cannot help the entire organization for the growth ensuring poverty remain within the societies. The ideologies represented by this premise is that once the community is leaving on a well-being environment, it does not have problems in ensuring that there is success within the economy and this has only succeeded in developing poverty (Inglehart and Welzel, 2009). The understanding of this concept has made it normal for some communities creating stagnation in the development and implementations of the success within the communities. These premise understandings bring out the idea that kicks it off to the next point. Thirdly, this understanding brings out the premise of collective movements. The dependency theory argues that the states or society which embrace this principle always find themselves working in the centre of helping each other (Escobar, 2007). The idea of self-reliance has been forgotten in this countries or economies resulting to not employing the full potential in the economic development. The society ensures that every little resource that has been put in place is used to serve every individual within the community making the process of developing the society being hard. The inability to rely on individual’s performance makes it hard for the community to grow as collective growth is encouraged which ensures that laziness is implemented in the lives of the citizens or the community ensuring failure and poverty within the country. Self-reliance creates self-awareness which could benefit the entire community towards eradicating poverty (Escobar, 2007). It is necessary for the community to forget about daily support but focus on the long term dids of the community to create the sense of development. This argument takes us to the fourth argument discussed next. Fourthly, the communities and the countries with high dependency ratio are subjected to large amount of debts which results to degradation of the economic development. The higher the dependency ratio the higher the debts that the provider in an economy is involved in to provide the needs of the society (Barnes and Sheldon, 2010). Once the mentality has been created, the country or the individual will be slapped with high amount of debts which will change the attention of the organizations. The country will only focus on paying the debts that they have taken to take care of the society needs. Once the attention has been diverted, the development of the society will be affected and the poverty level and the failure of the country will remain to be witnessed. The theorists believe that large economic aid is not a key for reducing the poverty within the society but relieving the debts may be a solution towards being stable in the economy (Peng and Wong, 2008). These problems continue to circulate within the society creating degradation and stagnant development. The discussion of the argument of this problem towards ensuring poverty circulation within the community is on the below as the last point. Lastly, the dependency theory argues that the poor countries and societies are unable to tap and make use of the resources within the organizations or the countries. The mentality of poor countries is based on debts and dependency on the foreign countries tapping the resources that should only be sued to fulfil the economic needs (Barnes and Sheldon, 2010). One these external forces invest in the society by proving the dependency needs, the entire society remains poor. At times the society implement the policies which only serve the societal needs at the moment rather than long term investments resulting to the introduction of the health hazard products. Short term investments that the society embrace to serve the large group of dependency creates continuous shortage in the resources within the countries and the society (Peng and Wong, 2008). It is advisable to initiate the application of long term investments which will help the community to be served well irrespective of the suffering that the society will go through during the initial investment process. Disagreement with the dependency theory premises The kind of achievement that was achieved by some of the Asian countries have shown a disagreement in understanding the concepts of the dependency theory. First is the issue of the foreign directive investment (FDI) that was embraced by the Asian countries (Narula and Dunning, 2010). The investment is fully based on the mother country depending on other countries for its investment actions. As the theory explains that the development of the society should be based on serving the society interests, the FDI ensures that the interests of the communities are evaluated before the investment is initializing. The FDI ensures that the dependency action is controlled and used to benefit the society through the only investing on the premises which help in the development and reduction in dependency (Kojima, 2010). Actually from the FDI it is clear that dependency theory being a source of poverty of the community or the country, if the investment process is well developed and analysed, the society is likely to develop by employing the principles. It only needs to make the society to believe on long-term profit considerations rather than the short term investment (Narula and Dunning, 2010). Also as it proceeds, the Asian countries developed with the transnational investments with some parts as discussed. The second factor of rebut that the development bring is the success and the capital that the countries received in their exportation. Despite the fact that the exports in this case only involve the primary goods, the counties still improved (Berkhout, Angel, and Wieczorek, 2009). For example, the oil exports were being used to earn more profit in the market irrespective of the low prices at the market. The strategies that were being used by the country despite depending of the external market ensured that they develop themselves to the current level of development. Also other countries realizing that some of the Asian countries were promising in terms of serving their market and their development they ensured the development as below. During the war within the United States, America realized that the Asian countries would be a promising place to reserve some of their resources. At the moment, the Asian countries fully depended on the services which were being offered by the United States to make them develop (Gereffi and Wyman, 2014). Despite the challenges that come with the dependency in other states for development, the success of the country depend on how the political and the environment is controlled to ensure that the society succeed (Berkhout, Angel and Wieczorek, 2009). The Asian countries depended on the United States which helped them to improve in their economy. At the same time of operation with the United Stes, they were fully given the powers to serve the America with the resources and it dispute the theory perception as below. The transnational trade that was taking place between USA and the Asian countries ensured that Asian countries received the ready market for their goods at the expense of other states (Gereffi and Wyman, 2014). This ensured that there was frequent use and application of the technology in Asian ensuring continuous development within the countries. The dependency that was taking place among the countries did not result to the failure of the business within Asian but only ensured that the development took place within Asia. If the countries would have not dependent on the market that was being offered by America the development that is currently seen in Asia would have not taken place. It is seen that though dependency ensures short term development and involvement of the communities in the success of the economy, it is also possible to have long term success and investments just like the case of the Asian countries and the United States of America (Ndulu, 2006). The interdependency between these countries ensured the political stability which had the advantages. The transnational trade ensured that the security of the individuals within the Asian countries was well taken care of. It ensured that the society was taking place in the development process to facilitate the benefits of the investments (Gereffi and Wyman, 2014). The use of the United States security personnel ensured that little capital was involved in running the security details of the society but rather used to ensure that the society was supported in resource development. It is an indication that good resources allocation and application of the important resources to various sector of economy towards involvement of the society and creating profit generating communities is important in bringing success of the entire economy (Ndulu, 2006). This idea dispute the argument being made by the dependency theory that one you get involved in the dependency approach, you only need to remain loyal and do whatever the provider asks for. The Asian countries fought hard in order to ensure that they develop despite the full dependency they were receiving form America. Also the political stability of the countries was ensured as most of the works were being done by the United Sates with the political arena being left for the success of the entire country (Hassler, 2012). It is also true that understanding the role that the dependency plays in your life is important for the success of the society that depends on others. Since development requires that we generate resources from others for our success, it still calls for the dependency. The Asian countries did not take in the pride of being independent but ensured that they incorporated the United States in the entire development (Kojima, 2010). It only depend on the level of dependency that the countries bring as well as the target that the institutions have in relation to the community. Dependency only calls for acceptance rather than the developments that the community require ensuring that they succeed towards different directions. The acceptance in this case should be driven towards bringing the community together but not to facilitate the increase in the dependency. The critics here are that dependency is a factor of behavioural challenges which should not be associated with the development procedures in the economy. The limitation that comes with depending on a specific group of individual should only be used to facilitate the success in the economy but not to develop the unrealistic perception of the society as a whole (Hassler, 2012). Conclusion In conclusion, the paper has looked at different aspects and premises of dependency theory creating proper understanding of the roles that it plays towards the entire society development. It has argued that the poverty is caused by the premises of, debts increase, lack of self-reliance, international collaboration market and the resources that we produce. On supporting the idea that the Asian countries went beyond the understanding of the premises of dependency theory, it has argued with the following. To ensure that the society is developed with the success realized from the gaps of dependency, proper allocation of the resources, and making use of the resources in an appropriate manner. The ideas that have been represented are important for the use by the developing countries as well as those running on dependency principles to develop. Reference list Adams, S., 2009. Foreign direct investment, domestic investment, and economic growth in Sub-Saharan Africa. 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