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FREE TRADE IN THE PERSPECTIVE OF THEORY OF DEPENDENCY
Sri Henny Indarti
Dosen Program Studi Administrasi Publik Fakultas Ilmu Sosial dan Ilmu Politik
Universitas 17 Agustus 1945 Jakarta [email protected]
ABSTRACT
The classical theory of dependency sees the situation of dependency as a global phenomenon that has similar characteristics without boundaries of space and time. But the new Theory of dependency sees the situation of being dependent is caused by so complicated reasons: external factors, or as an economic issue that will direct and lead the developing countries to the regional polarization and retardation. Free trade has led a country to be dependent; a situation that has specific historical, political, and also social issues from those who anti-globalization. Being dependent in free trade is the best reason to reject the politics of economic relation between the developed and developing countries.
Keywords: Classical Theory of Dependency, Globalization, Free Trade
1.1Background of Study
Globalization is evolving to give a lot of changes in the pattern of international relations between the developed and developing countries (Hutomi, 2012). One of the modern world offers to the developed and developing countries is the emergence of bilateral cooperation, regional and multilateral cooperation in various fields, especially
economics and
technology. Theoretically, the relationship between the countries involved in international cooperation is expected to create harmony and world peace (Teece, 1992). On the other hands, the developments of
state cooperation between the developed and developing countries are not only limited to the political agreement, that is, the more cooperative relationships lead to the more economic cooperation that is packed into a free trade.
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development, the pattern of free trade between the developed and developing countries depend on each country's potential by looking at commodities by country. This then gives a great chance to maximize the developed markets in developing countries. In contrast, the developing countries actively act as suppliers of food commodities and raw materials which are not being produced by the advanced countries.
Conceptually, the goal of free trade that refers to the peace of the world would give a different view of the meaning of peace for developing countries. Somehow, there are issues of imperialism that led to the deterioration of the developing and developed power. Cooperation is considered only a side benefit of the parties; as occurs in the developed and developing countries which are theoretically studied in the theory of dependency. This theory is more focused on the problems of developed and developing countries. Through the perspective of this theory, free trade between developed and developing countries is analyzed further in order to determine the existence of peace and truth issues in the developing world imperialism.
1.2Problems of Study
Considering a brief explanation in the background above, the formulations of the problem in this
paper is, “How is the analysis of free trade in the perspective of the theory of dependency?”
2.1 Theory of Dependency
Theory of dependency is a theory that understands criticized modernization theory, theory of dependency which has a belief that economic cooperation ties through free trade is a way of modern imperialism of Western countries to developing countries or Third World.
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include: (a) State dependence is seen as a universal phenomenon, applicable to all Third World countries.
a. Dependence is seen as a condition caused by external factors.
b. Situation of dependency is defined as an integral part of the process of regional polarization of the global economy.
c. State dependence is commonly seen as a matter of absolute opposite of development.
d. Development of society based
on conflict and
problem. Conflicts are
created just to bring changes in the global community.
2.2 Free Trade and Peace
Based on Teece (1992) the comparison of the role is too big to make the flow of dependent or structural adherents argue that the aspired peace will only be felt by the central or western / developed countries. If indeed, the advantage has been gained by developing countries is quite large, it is simply a way of extending the
developed countries or the common belief that a land market that is very productive variety of business and investment products and developed
countries. Such conditions make the meaning of peace for developing
countries is limited to “maintain its position by trying to hold importer by trying to continue to stabilize the amount of exports”. In fact, the true peace is the right of every country, not just felt by the developed countries.
From the perspective and analysis of the theory of dependency, the peace between developed
countries and developing countries is judged definitely very impossible to be realized. In theory of dependency, world peace could happen only considered as a false peace. This is because the conditions in both countries do not allow for fair cooperation.
2.3 Free Trade and Imperialism
The term imperialism refers to the system of government as well as economic and political ties of advanced or rich and powerful countries that guard and control of other countries that are considered to be backward and poor with the aim of exploiting the resources of the nation to increase the wealth and the developed countries; colonial state power.
The basis of imperialism was intended to disseminate the ideas and the West culture. Imperialism highlights the properties of excellence (hegemony) by one nat ion for another. The main purpose
of imperialism is to
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profit from the land under their control because
of their economic resources are insufficient.
Modern imperialism in the perspective of developing countries is
a major reason underlying the
most resistance to the presence of various free trade. Imperialism did not lead to physical terms such as colonialism in the past. From the perspective of theory of dependency, free trade would provide a verywide space for developed
countries to influence all forms of economic policies of developing countries. Broadly speaking, free trade policies or any trade agreement that remove import
duty export product decreases or hampers the opportunities for developing countries to compete (Yusuf, 1989).
Therefore, the theory of dependency see free trade as ameans of political imperialism where indust rialized countries are free to enter the political interests related to the economy and free markets. Free trade has been assessed`as a way of utilizing a global perspective and thusare not aware of the social imbalance, patrimonial stru cture andexploitation in the
developing countries themselves.
2.4 Free Trade, Peace,
Imperialism and Theory of Dependency
Although theoretically free trade and peace in the perspective of
theory of
dependency are two separate
things, but in fact free trade still rated as the best solution in bringing about peace. In addition, theory of dependency also emphasizes the activities of the private sector in relation to the activities of multinational companies, discuss the relationship between the classes that exist in the country and class relations among nations in an international context, it also provides a different definition of economic
development in the perspective of the social classes, between regions and between countries (Glenn, 2006).
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form, in the perspective of theory of dependency is a kind of new imperialism that increasingly
encourages the exploitation of developing countries by developed countries. Peace is the goal of free trade is an ideal that will only be felt by the developed countries.
Modern imperialism which is believed to theory of dependency implies that free trade tends to provide a gap for developed countries to influence the political and economic policies developing countries. However the critics of theory of dependency, free trade continue to provide the best alternative to the embodiment of peace efforts. That is to say that the assumption of theory of dependency is not able to change the minds of the global community about the role of free trade.
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