232 AMERICAN ECONOMIC ASSOCIATION talist centers and the ways in which the latter ex- plementary economic activities (cattle-raising and pand outward;and (3)the types of economic re- some manufacturing,for example)which were lations existing inside the peripheral countries dependent,in general,on the export sector to which are incorporated into the situation of de- which they sell their products.There was a third, pendence within the network of international eco- subsistence economy which provided manpower nomic relations generated by capitalist expansion. for the export sector under favorable conditions It is not within the purview of this paper to and toward which excess population shifted dur- study these forms in detail but only to distinguish ing periods unfavorable to international trade. broad characteristics of development. Under these conditions,the existing internal Drawing on an earlier study,we may distin- market was restricted by four factors:(1)Most guish:(1)Colonial dependence,trade export in of the national income was derived from export, nature,in which commercial and financial capital which was used to purchase the inputs required in alliance with the colonialist state dominated by export production (slaves,for example)or the economic relations of the Europeans and the luxury goods consumed by the hacienda-and colonies,by means of a trade monopoly comple- mine-owners,and by the more prosperous em- mented by a colonial monopoly of land,mines, ployees.(2)The available manpower was subject and manpower (serf or slave)in the colonized to very arduous forms of superexploitation,which countries.(2)Financial-industrial dependence limited its consumption.(3)Part of the con- which consolidated itself at the end of the nine- sumption of these workers was provided by the teenth century,characterized by the domination subsistence economy,which served as a comple- of big capital in the hegemonic centers,and its ment to their income and as a refuge during peri- expansion abroad through investment in the pro- ods of depression.(4)A fourth factor was to be duction of raw materials and agricultural prod- found in those countries in which land and mines ucts for consumption in the hegemonic centers. were in the hands of foreigners (cases of an en- A productive structure grew up in the dependent clave economy):a great part of the accumulated countries devoted to the export of these products surplus was destined to be sent abroad in the (which Levin labeled export economies [11];other form of profits,limiting not only internal con- analysis in other regions [12][13]),producing sumption but also possibilities of reinvestment what ECLA has called "foreign-oriented develop- [1].In the case of enclave economies the relations ment"(desarrollo hacia afuera)[4].(3)In the of the foreign companies with the hegemonic cen- postwar period a new type of dependence has been ter were even more exploitative and were comple- consolidated,based on multinational corporations mented by the fact that purchases by the enclave which began to invest in industries geared to the were made directly abroad. internal market of underdeveloped countries.This form of dependence is basically technological-in- IV.The New Dependence dustrial dependence [6]. The new form of dependence,(3)above, Each of these forms of dependence corre- is in process of developing and is conditioned by sponds to a situation which conditioned not only the exigencies of the international commodity and the international relations of these countries but capital markets.The possibility of generating new also their internal structures:the orientation of investments depends on the existence of financial production,the forms of capital accumulation, resources in foreign currency for the purchase of the reproduction of the economy,and,simultane- machinery and processed raw materials not pro- ously,their social and political structure. duced domestically.Such purchases are subject to two limitations:the limit of resources generated III.The Export Economies by the export sector (reflected in the balance of In forms (1)and (2)of dependence,produc- payments,which includes not only trade but also tion is geared to those products destined for ex- service relations);and the limitations of monop- port (gold,silver,and tropical products in the co- oly on patents which leads monopolistic firms to lonial epoch;raw materials and agricultural prod- prefer to transfer their machines in the form of ucts in the epoch of industrial-financial depen- capital rather than as commodities for sale.It is dence);i.e.,production is determined by demand necessary to analyze these relations of depen- from the hegemonic centers.The internal produc- dence if we are to understand the fundamental tive structure is characterized by rigid specializa- structural limits they place on the development tion and monoculture in entire regions (the Ca- of these economies. ribbean,the Brazilian Northeast,etc.).Alongside 1.Industrial development is dependent on an these export sectors there grew up certain com- export sector for the foreign currency to buy the Copvriaht .2001.All Rights Reserved