The Neo-Colonial Dependence Model and the Diverging Economic Paths of Chile and Argentina


David Isham*


* Daniels College of Business / Korbel School of International Studies, University of Denver, Denver, CO 80209


By placing the economic paths of Chile and Argentina within a historical context, their current economic position can be better analyzed within five aspects of the Neo- Colonial Dependence Model. The Neo-ColonialDependence Model asserts that less economically developed, former colonial-era colonies that technically have political independence, are still economically tied and largely dependent onMore Developed Countries (MDCs). This parasitic relationship provides increased wealth and power to the MDCs. It is this economic power dynamic that weakens the socio-political economic status of theLess Developed Countries (LDCs) in a way that exacerbates the current economic hardships and further increases the power-and-control dynamic between LDCs and MDCs. Placed within the context of each countries historic beginning as Spanish Colonies, Chile and Argentina’s economic data is tested against five hypotheses to ascertain whether or not these countries are still operating within the constraints of the Neo-Colonial Dependence Model.

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