The Neocolonial Dependence Model
The first major stream, which we call the neocolonial dependence model, is an indirect outgrowth of Marxist
thinking. It attributes the existence and continuance of Third World underdevelopment primarily to the historical
evolution of a highly unequal international capitalist system of rich country-poor country relationships. Whether
because rich nations are intentionally exploitative or unintentionally neglectful, the coexistence of rich and poor
nations in an international system dominated by such unequal power relationships between the center (the
developed countries) and the periphery (the LDCs) renders attempts by poor nations to be self-reliant and
independent difficult and sometimes even impossible.v
Certain groups in the developing countries (including
landlords, entrepreneurs, military rulers, merchants, salaried public officials, and trade union leaders) who enjoy
high incomes, social status, and political power constitute a small elite ruling class whose principal interest,
whether knowingly or not, is in the perpetuation of the international capitalist system of inequality and
conformity by which they are rewarded. Directly and indirectly, they serve (are dominated by) and are rewarded
by (are dependent on) international special-interest power groups including multinational corporations, national
bilateral aid agendas, and multilateral assistance organizations like the World Bank or the International Monetary
Fund (IMF), which are tied by allegiance or funding to the wealthy capitalist countries. The elites' activities and
viewpoints often serve to inhibit any genuine reform efforts that might benefit the wider population and in some
cases actually lead to even lower levels of living and to the perpetuation of underdevelopment. In short, the
neo-Marxist, neocolonial view of underdevelopment attributes a large part of the Third World's continuing and
worsening poverty to the existence and polices of the industrial capitalist countries of the Northern Hemisphere
and their extensions in the form of small but powerful elite or comprador groups in the less developed
countries