Question

According to Andre Gunder Frank, which of the following factors are responsible for the development of underdevelopment in Latin America?

• A. The survival of archaic institutions
• B. The relationship between the satellite and the metropolis
• C. The existence of capital shortage in developed regions
• D. Participation in the process of world capitalist development

Hint:

In dependency theory, Andre Gunder Frank argued that underdevelopment in the peripheral nations of Latin America is caused by their exploitation through relationships with the capitalist world system.

Answer 1

The Correct Option is B, D

Step 1: Understanding Andre Gunder Frank’s Theory.
Andre Gunder Frank is a key figure in dependency theory. He argued that the development of underdevelopment in Latin America was a direct result of its historical and economic relationship with the capitalist world system, particularly the relationship between the 'satellite' (Latin American countries) and the 'metropolis' (developed countries).
Step 2: Analyzing the options.
- (A) Incorrect, while the survival of archaic institutions may contribute to underdevelopment, it is not the main focus of Frank's theory.
- (B) Correct, Frank emphasizes the exploitative relationship between the developed 'metropolis' and underdeveloped 'satellite' countries as the key cause of underdevelopment.
- (C) Incorrect, capital shortage in developed regions is not the focus of Frank’s theory; rather, it’s the flow of resources from the periphery to the center.
- (D) Correct, Frank’s theory highlights how Latin America’s participation in the global capitalist system perpetuates underdevelopment by extracting resources and labor.
Step 3: Conclusion.
Thus, the correct answers are (B) and (D).