FREE TRADE IN THE PERSPECTIVE OF THEORY OF DEPENDENCY | Indarti | The Indonesian Journal of Public Administration (IJPA) 437 1422 1 SM
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
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
1.1 Background 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.
Free trade can also be defined
as the absence of artificial barriers
(barriers that applied by the
government) in trade between
individuals and companies located in
different
countries
(Suwono,
2012). It is happening, free trade is
increasing in recent decades mainly
because there are serious efforts to
coordinate internationally through
agreements like the World Trade
Page | 213
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
Organization (WTO). During its
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.
1.2 Problems 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.
Theory of dependency is more
focused on the problems of
underdevelopment and development
of developing countries. In this case,
it can be said that the theory of
dependency represents the “voice of
the periphery” to challenge the
hegemony of economic, political,
and intellectual culture of the
developed world. The emergence of
theory of dependency is more a
critique of current development
thinking that the main problem is
dominated
by
modernization
theory. This theory is looking at
developing
relationships
and
linkages with the central state in the
West as a relationship that is not
balanced and therefore only produce
a result that would be detrimental to
developing countries (Moehtar,
1990). Central state in the West tend
to oppress developing countries are
always trying to keep the flow of
economic surplus from the periphery
to
the
central
state. Basic
Page | 214
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
assumptions of the dependency
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.
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
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
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
increase economic
Page | 215
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
output. Imperialist countries seek to
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).
However, the dependency is
only blaming capitalism as the cause
of dependency. The concept of
addiction itself is less clearly defined
dichotomy is simply defined as a
concept, there is no possibility of
escape from dependency, was always
regarded as something negative. Too
much theory of dependency also
assumes that there are different
interests among the countries of
central and peripheral countries, so
that all aspects of theory of
dependency have always assumed
the presence of modern imperialism.
Page | 216
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
Free
trade, whatever
its
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.
BIBLIOGRAPHY
Mas‟oed, Moehtar. 1990 Ilmu
Hubungan
Internasional
Disiplin dan Metodologi.
Jakarta: LP3ES
Yusuf,
Sufri. 1989. Hubungan
Internasional dan Politik
Luar
Negeri.
Jakarta:
Pustaka Sinar Harapan
Laverack, Glenn. 2006. Using a
„Domains‟ Approach to
Build
Community
Empowerment.
Community Development
Journal, 41 (1): 4-12
Teece,
D.J. 1992. Competition,
Cooperation,
and
Innovation: Organizational
Arrangements for Regimes
of Rapid Technological
Progress.
Journal
of
Economic Behavior and
Organization, 1 (1): 18
Hutomi, Luthfi. 2012. “Dependensi
dan Dunia Global”. (online),
(http://www.luthfihutomi.w
ordpress.com/, diakses pada
12 Januari 2012)
Mas‟oed, Moehtar. 2012. “Perspektif
Teori Dependensi”. (online),
(http://www.poppysw.staff.
ugm.ac.id/file/02Perspektif%20EPI.pdf,
diakses pada 12 Januari
2012 )
Redaksi.
2012.
“Pro-kontra
Perdagangan Bebas”. (online),
(http://www.republika.co.id/
prokontra/view/4e324bda6a
eb7641000001/perdagangan
bebas, diakses pada 12
Januari 2012)
Suwono, Eko. 2012. “Perdagangan
Bebas”.
(on-line),
(http://www.ekosuwono.wo
rdpress.com/, diakses pada
12 Januari 2012)
Page | 217
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
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
1.1 Background 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.
Free trade can also be defined
as the absence of artificial barriers
(barriers that applied by the
government) in trade between
individuals and companies located in
different
countries
(Suwono,
2012). It is happening, free trade is
increasing in recent decades mainly
because there are serious efforts to
coordinate internationally through
agreements like the World Trade
Page | 213
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
Organization (WTO). During its
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.
1.2 Problems 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.
Theory of dependency is more
focused on the problems of
underdevelopment and development
of developing countries. In this case,
it can be said that the theory of
dependency represents the “voice of
the periphery” to challenge the
hegemony of economic, political,
and intellectual culture of the
developed world. The emergence of
theory of dependency is more a
critique of current development
thinking that the main problem is
dominated
by
modernization
theory. This theory is looking at
developing
relationships
and
linkages with the central state in the
West as a relationship that is not
balanced and therefore only produce
a result that would be detrimental to
developing countries (Moehtar,
1990). Central state in the West tend
to oppress developing countries are
always trying to keep the flow of
economic surplus from the periphery
to
the
central
state. Basic
Page | 214
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
assumptions of the dependency
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.
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
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
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
increase economic
Page | 215
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
output. Imperialist countries seek to
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).
However, the dependency is
only blaming capitalism as the cause
of dependency. The concept of
addiction itself is less clearly defined
dichotomy is simply defined as a
concept, there is no possibility of
escape from dependency, was always
regarded as something negative. Too
much theory of dependency also
assumes that there are different
interests among the countries of
central and peripheral countries, so
that all aspects of theory of
dependency have always assumed
the presence of modern imperialism.
Page | 216
IJPA-The Indonesian Journal of Public
Administration
Volume 1 | Nomor 2 | Juli-Desember 2015
Free
trade, whatever
its
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.
BIBLIOGRAPHY
Mas‟oed, Moehtar. 1990 Ilmu
Hubungan
Internasional
Disiplin dan Metodologi.
Jakarta: LP3ES
Yusuf,
Sufri. 1989. Hubungan
Internasional dan Politik
Luar
Negeri.
Jakarta:
Pustaka Sinar Harapan
Laverack, Glenn. 2006. Using a
„Domains‟ Approach to
Build
Community
Empowerment.
Community Development
Journal, 41 (1): 4-12
Teece,
D.J. 1992. Competition,
Cooperation,
and
Innovation: Organizational
Arrangements for Regimes
of Rapid Technological
Progress.
Journal
of
Economic Behavior and
Organization, 1 (1): 18
Hutomi, Luthfi. 2012. “Dependensi
dan Dunia Global”. (online),
(http://www.luthfihutomi.w
ordpress.com/, diakses pada
12 Januari 2012)
Mas‟oed, Moehtar. 2012. “Perspektif
Teori Dependensi”. (online),
(http://www.poppysw.staff.
ugm.ac.id/file/02Perspektif%20EPI.pdf,
diakses pada 12 Januari
2012 )
Redaksi.
2012.
“Pro-kontra
Perdagangan Bebas”. (online),
(http://www.republika.co.id/
prokontra/view/4e324bda6a
eb7641000001/perdagangan
bebas, diakses pada 12
Januari 2012)
Suwono, Eko. 2012. “Perdagangan
Bebas”.
(on-line),
(http://www.ekosuwono.wo
rdpress.com/, diakses pada
12 Januari 2012)
Page | 217