THE STRUCTURE OF DEPENDENCE* By THEOTONIO DOS SANTOS University of_Chile This paper attempts to demonstrate that the countries(orto“modernize'”or"develop”them- dependence of Latin American countries on other selves).Although capitalist development theory countries cannot be overcome without a qualita- admits the existence of an"external"dependence, tive change in their internal structures and exter- it is unable to perceive underdevelopment in the nal relations.We shall attempt to show that the way our present theory perceives it,as a conse- relations of dependence to which these countries quence and part of the process of the world ex- are subjected conform to a type of international pansion of capitalism-a part that is necessary to and internal structure which leads them to under- and integrally linked with it. development or more precisely to a dependent In analyzing the process of constituting a world structure that deepens and aggravates the funda- economy that integrates the so-called "national mental problems of their peoples. economies"in a world market of commodities, capital,and even of labor power,we see that the I.What is Dependence? relations produced by this market are unequal By dependence we mean a situation in which the and combined-unequal because development of economy of certain countries is conditioned by the parts of the system occurs at the expense of other development and expansion of another economy to which the former is subjected.The relation of inter- parts.Trade relations are based on monopolistic dependence between two or more economies,and control of the market,which leads to the transfer between these and world trade,assumes the form of of surplus generated in the dependent countries dependence when some countries(the dominant ones) to the dominant countries;financial relations are, can expand and can be self-sustaining,while other from the viewpoint of the dominant powers, countries (the dependent ones)can do this only as based on loans and the export of capital,which a reflection of that expansion,which can have either permit them to receive interest and profits:thus a positive or a negative effect on their immediate de- increasing their domestic surplus and strengthen- velopment [7,p.61. ing their control over the economies of the other The concept of dependence permits us to see countries.For the dependent countries these rela- the internal situation of these countries as part of tions represent an export of profits and interest world economy.In the Marxian tradition,the which carries off part of the surplus generated theory of imperialism has been developed as a domestically and leads to a loss of control over study of the process of expansion of the imperial- their productive resources.In order to permit ist centers and of their world domination.In the these disadvantageous relations,the dependent epoch of the revolutionary movement of the countries must generate large'surpluses,not in Third World,we have to develop the theory of such a way as to create higher levels of technol- laws of internal development in those countries ogy but rather superexploited manpower.The re- that are the object of such expansion and are gov- sult is to limit the development of their internal erned by them.This theoretical step transcends market and their technical and cultural capacity, the theory of development which seeks to explain as well as the moral and physical health of their the situation of the underdeveloped countries as a people.We call this combined development be- product of their slowness or failure to adopt the cause it is the combination 'of these inequalities patterns of efficiency characteristic of developed and the transfer of resources from the most back- ward and dependent sectors to the most advanced This work expands on certain preliminary work and dominant ones which explains the inequality, done in a research project on the relations of depen- dence in Latin America,directed by the author at the deepens it,and transforms it into a necessary and Center for Socio-Economic Studies of the Faculty of structural element of the world economy. Economic Science of the University of Chile.In order to abridge the discussion of various aspects,the au- II.Historic Forms of Dependence thor was obliged to cite certain of his earlier works. The author expresses his gratitude to the researcher Historic forms of dependence are conditioned Orlando Caputo and Roberto Pizarro for some of the by:(1)the basic forms of this world economy data utilized and to Sergio Ramos for his critical which has its own laws of development;(2)the comments on the paper... type of.economic relations dominant in the capi- 231 Copyright 2001 All Rights Reserved