Development and Dependency: Theory and Practice in Latin America

In the post-World War II period, Latin American area studies debated several schools of thought about the causes of underdevelopment. Modernization theory focused on value change, while dependency theory initially highlighted an intrinsically exploitative world trade system. Marxism, structuralism, and institutionalism contributed to the debate. This chapter draws mostly on the world systems paradigm and emphasizes the themes of the debt crisis, the “lost decade” (1980s), and the rise of neoliberal structural adjustment policies.