Underdeveloped nations exist to channel surplus toward wealthy metropolises.

Evidence

In his 1967 book Capitalism and Underdevelopment in Latin America, Andre Gunder Frank, a fierce critic of the free market approach espoused by his mentor Milton Friedman, argued that the nations that we now consider to be developed were never ‘undeveloped’ in the way we view African nations. Rather, the nations that are called undeveloped have a unique role in the world system unlike anything that the rich countries have ever played. He argued that the underdeveloped nations serve ‘as an instrument to suck capital or economic surplus out of … [the] … satellites and to channel … this surplus to the world metropolis’. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 14 (#corroborates, via linked claim)

Modern monetary theory (MMT) shows that a currency is intrinsically related to the way the government is able to shift productive resources from the non-government sector to the public sector in order to fulfil its socioeconomic mandate. In the context of colonial, and then neo-colonial, relations, currency arrangements also served to facilitate the transfer of wealth from colonies to the metropolis. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 20 (#exemplifies, via linked claim)

Categorization

• XREF: connects to: Currency arrangements can function as wealth-transfer mechanisms between societies.; Underdeveloped nations uniquely channel surplus to the world metropolis — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 14; Currency arrangements can transfer wealth from colonies to metropolis — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 20 (+6 more)

Related

• Underdeveloped nations uniquely channel surplus to the world metropolis (similarity 0.93)
• Currency arrangements can transfer wealth from colonies to metropolis (similarity 0.88)
• Currency arrangements can function as wealth-transfer mechanisms between societies. (similarity 0.86)
• Latin America’s underdevelopment stems from its early insertion into world capitalism. (similarity 0.79)
• Western wealth was built by actively creating underdevelopment elsewhere (similarity 0.79)
• Monetary dependence underlies all other forms of African dependence (similarity 0.79)

Broader Connections

• Underdeveloped nations uniquely channel surplus to the world metropolis #corroborates (0.85) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 14
• Dependency theory frames rich nations’ prosperity as reliant on exploiting the periphery. #corroborates (0.70)
• Currency arrangements can transfer wealth from colonies to metropolis #exemplifies (0.60) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 20
• Latin America’s underdevelopment stems from its early insertion into world capitalism. #expands (0.55)
• The exchange sphere’s apparent equality masks the extraction of surplus in production. #expands (0.50)
• The wealthy nations could not have industrialized under the policies they impose on Africa #complicates (0.40) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 36