Andre Gunder Frank

Premise: To understand underdevelopment of the majority world, one must examine historical economic and social contexts.
Critique of Historical Studies: Most historians focus on developed nations, neglecting colonial and underdeveloped regions, leading to a lack of comprehensive development theories informed by the lived experiences of these regions.
- Historical experiences of European and North American nations do not adequately reflect the realities of colonial and underdeveloped countries.

Assumptions on Historical Similarity: There is a common but unfounded assumption that underdeveloped countries reflect earlier stages of now-developed nations.
- Ignorance of the unique histories of underdeveloped countries contributes to criticism of current underdevelopment.
Economic Relations Ignored: Many studies overlook historical economic relations between developed metropolises and their colonies.
- Theories often fail to account for systemic structures of global capitalism that generate underdevelopment alongside development.

Stages of Capitalism: It is widely accepted that economic development follows a series of stages. However, underdeveloped countries are not merely in an earlier stage but have been historically shaped by their relationships with developed nations.
Counter-Narrative of Underdevelopment: Underdevelopment should not be framed simply as a failure to develop independently but rather as a result of historical economic ties and exploitative structures that persist.

Metropolis-Satellite Structure: Capitalism creates a network of relationships where the metropolis (developed nations/cities) exploit their satellites (underdeveloped nations/regions).
- Historical context displays colonial cities established to integrate indigenous populations into capitalist economies, functioning as tools of domination.
- The intimate economic interdependence between mestizo populations and indigenous communities in Latin America showcases ongoing exploitation.
Instrument of Exploitation: Provincial capitals act as satellites to national metropolises, which in turn are satellites of global metropolises, establishing a hierarchical economic structure.

Historical Examples: The histories of Chile and Brazil reflect their incorporation into the global capitalist system.
- Chile's economic structure showcases how colonial and contemporary capitalist systems have instilled a satellite-like status.
- Brazil’s various regions exemplify satellite economies, marked by underdevelopment post-collapse of export economies.

World Wars and Development: Industrialization in Brazil (specifically São Paulo) during the World Wars did not break the cycle of satellite development but deepened it, consolidating internal colonialism.
- Evidence suggests industry growth in São Paulo benefited the metropolis, leaving other regions of Brazil even more underdeveloped.

Critique of Dual Society Thesis: The belief in dual economies—one modern and developed, the other feudal or traditional—oversimplifies realities and can perpetuate policies that maintain underdeveloped conditions.
Historical Revision: Evidence indicates that regions previously deemed isolated became manufacturing centers before being incorporated into capitalist structures, challenging the notion of isolation as a barrier to development.

Development vs. Satellite Status: Proposes hypotheses suggesting that as satellite connections weaken, the potential for genuine economic development increases.
- Economic crises have historically allowed regions like Latin America to initiate autonomous growth, contradicting the diffusion theory of development.
Growth and Isolation: Evidence indicates that regions with less connection to the global economy experience higher levels of independent development.

Disruption from Global Forces: As metropolitan economies stabilize post-crisis, previously developing regions regress, nurturing underdevelopment due to re-integration into exploitative systems.
Corollary Hypotheses: Underdeveloped regions today often have histories marked by intense exploitation and resource extraction, suggesting that closer ties to metropolises correlate with higher current underdevelopment.

Policy Directions: Understanding underdevelopment requires a revision of current theories and policies to acknowledge historical contexts and structural relationships.
Call for More Research: Emphasizes the need for future research focusing on the historical underpinnings of development models and their implications on present socio-economic structures.