Essay Example on Palestine began with the Dependence Theory









It is fair to say that Palestine began with the Dependence theory to contribute to development theory and to be noticed internationally The Dependency theory contradicted the claim and presented new ways of explaining the reasons of why Palestine stile underdevelopment and give us a new way to think and to develop new strategies to transfer our country to be dependent as independency theory indicate that in order to secure a good and healthy development our country Palestine should be prepared and create circumstances and conditions for development Palestine should take important economic and political measures to create the conditions of development such as Palestinian authority should be more effective and more involved in its role in terms of national development To attract new investment opportunity in Palestine especially for Diaspora to encourage them to come to Palestine 

To encourage the domestic products and promote more effective internal demand for domestic market Increase the wages and salaries of workers which will in turn positively affect the demand of the internal Palestinian market Encourage the competiveness between the Palestinian tenants Develop a Palestinian national strategies based on the real needs

And to have our own agenda for development not following the donors hidden agenda Raul Prebish and the other dependency theorists agreed to some extent with the classical and also neo classical theory that foreign trade without question was beneficial to both parties engaged in it as importer and exporter as the logic of comparative costs and comparative advantages determined But they disagreed on several grounds and among them were Samir Amin in Elmusa 1986 258 summarises the inclusion of the Arab economy in the world economy like this The contribution of imports to consumption and investment in the Arab World is twice as important as in Black Africa three times more than in Latin America and Caribbean 3 3 times more important than in South and East Asia In other words the Arab economy is more externally oriented and hence more dependent than economies of the rest of the

Third World The aspects of dependence can be found in different areas as exporting of petrochemicals import of food and products of necessity for the household the need of technology to maintain the standard of infrastructure and for development of the industrial sector Financial dependence occurs when states cannot pay back their loans to their creditors either if it is to commercial Western banks or through Western financial institutions like the World Bank Krueger vd 1989 Culture communication and education in addition to the economic imperialism which is still the main feature of imperialism we will see that the spectre of Western influence is almost unlimited Food items such as wheat rice sugar and meat failed to all to keep up with domestic consumption Consequently the region has become a major global market for agricultural and food products Ironically while as a region it is one of the largest producers e g Turkey and importers e g Egypt and Saudi Arabia of food and feed grains in the world the trade in foodstuffs among the countries of the region are far from a sufficient level

A major result of the combination of increasing demand for food and decreasing resources for agriculture is that the region s capacity to meet its consumption needs is not sufficient The third factor is the rapid urbanisation trend in the region As number and quality of foods are more needed in urban settlements than in rural ones because of increasing consciousness about health better education and decreased mortality rates the need for food has increased since a couple of decades Furthermore when farm populations migrate to large cities food production in the region decreases accordingly Also we have a problem in the export and import our exports cannot match our import of necessary industrial goods the failure of the import substitution due to the Israeli s control on the border in order to protect their goods and internal markets Foreign aid sounds always so charitable to the Palestinian people and well meaning like you can take it if you want to but usually one dollar spent on aid comes back as three dollars in the donor country in the form of exports and jobs

And aid is dangerous in that sense it makes you think you can live after a standard of living that is based on external support and not from income from accumulated industrial wealth Like the oil boom showed the Arab countries did not manage to distribute and invest their new income or grants efficiently they lived on the illusion that this would last forever and when the recession came they were not prepared and did not have the necessary resources or knowledge to come out of the crisis The centre countries had the capital the peripheral countries wanted so they lent them large amounts of money in return for geo political support The financial dependence through the International Monetary Fund and the Wold Bank is a clear example on how tied up the developing countries are to the West This in turn has led to a development towards economic liberalization in Palestine Almost all international financial organisations are managed by rich western countries while they try to control economic and even social life in underdeveloped and developing nations through such mechanism of financial aid and loans Because of the conditionality principle for loans many Third World countries including majority of the countries in the Middle East region are under pressure for economic reform which in practice means more integration with the West

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