Economics

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Economics
Dos Santos identified that the historical dependence of Latin American countries was formalized by three main factors. One it the dominant type of the global economy (capitalist) that has developed its own laws favoring the capitalists. The second is based on the dominant type of economic relations in the capitalist world as the country seeks to expand outwards. Thirdly, the types of commercial relations that exist within the peripheral states were integrated into a situation where they are dependent within a network of global economic relationship that is defined by capitalist expansion. Drawing on these conditions, Dos Santos identified the two different historical forms of dependence by the Latin American countries.
The first one is colonial dependence. The trade export in nature is controlled by the economic treaties and ties between the countries and their European masters as they have remained key providers of economic and financial capital. In such a situation, the colonial monopoly was complemented by most of the factors of production in the colonized countries such as land, mines, and labor (serf and slave workforce).
The second type was financial-industrial dependence. This type of dependence merged and integrated itself in the economic system in the late 19th century when big capital that dominated the hegemonic centres were expanded abroad through investment in raw material production. Such production structures developed in a dependent country that devoted all its products to export without developing the local market.

This foreign-oriented development caused significant harm to the local economy because even when the post-war development focused on the internal market, it was technologically deprived.
In conclusion, Dos Santos (231) sought to prove that Latin America still has a high dependence on foreign countries cannot end without making a rigorous qualitative modification on the internal arrangements of government entities as well as the external relationships with other states.
Work Cited
Dos Santos, Theotonio. The Structure of Dependence. The American Economic Review, Vol. 60, No. 2, Papers and Proceedings of the Eighty-second Annual Meeting of the American Economic Association (May, 1970), pp. 231-236