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Economically, Africa is the poorest continent in the world and, according the United Nations (UN) Human Development Index, is home to the overwhelming majority of countries identified as having low human development. From 1960 to 2005, Africa received more than $450 billion in foreign aid. Despite this, between 1975 and 2000, the gross domestic product (GDP) per capita dropped at an average annual rate of 0.59 percent. Similarly, during this same period, African GDP per capita fell from $1,770 to $1,479. A number of other alarming statistics underscore the significant challenges facing African development. For example, the UN Children's Fund (UNICEF) reports that 43 percent of children in sub-Saharan Africa do not have safe, accessible drinking water. To explain this disconnect between foreign aid and economic and social decline, underdevelopment theory argues that these phenomena, among others, can be understood based on the deliberate underutilization of resources, human and natural, first via colonialism and currently through globalization, aid conditionalities, and corruption.

Underdevelopment Theory

Underdevelopment theory posits that when the socioeconomic potential of a nation's resources is not maximized, the result is little to no local and/or regional development. The two primary theories of underdevelopment, modernization theory and dependency theory, highlight the role of the international community and its conscious involvement in the underdevelopment of poor countries, most of which are in Africa. A key aspect in understanding underdevelopment is that it does not explain why a nation is behind in the process of development. Rather, it takes a position of a state having been made worse.

Modernization Theory

Modernization theory examines the paths of development of industrialized countries in order to determine the most effective and efficient path of development for developing and undeveloped countries. Its foundation can be traced back to the Age of Enlightenment. One aspect of its contemporary manifestation critically analyzes the impact of globalization, particularly the growing income disparities between wealthy and poor nations. As countries modernize, moving from an agrarian economy to one focused on industrialization and human capital, poor countries are vulnerable to economic downturns and are unable to be self-sufficient, further entrenching their marginalized economic position. Using industrialized countries as an example, modernization theory suggests that poor countries take similar paths to development.

Whereas modernization theory suggests that Western influence is beneficial, dependency theory asserts that Western influence is harmful for poor countries. Although it has fallen out of favor in academic circles, its legacy persists. Dependency theory regards the relationships between different countries as a means to understand the current economic order. It also offers a method of understanding the external causes of global inequalities. Dependency theory highlights the relationship between economic and political interaction, where marginalized countries serve as both partners and pawns of the economic interests of rich and powerful nations. Critiques of dependency theory argue that it fails to address all of the causes of a country's poor economic development and does not allow underdeveloped states political autonomy.

The Consequences of Underdevelopment

African countries serve as clear examples of the consequences of underdevelopment. Walter Rodney's How Europe Underdeveloped Africa serves as the definitive analysis of the systematic underdevelopment of Africa, initiated by colonialism and pursued through globalization. While capitalism brought development across Europe, the same did not occur anywhere in Africa for the benefit of African workers. During colonialism, rural Africa grew the crops and provided labor that sustained an economic system that did not, in turn, benefit the region. For example, infrastructure projects like sanitation services, electricity, water systems, paved roads, medical services, and schools did not exist for rural Africa. Moreover, rural Africans were not trained to provide this type of labor, as seen in the example that there were no trained African doctors in all of Mozambique. Hospitals for African workers were only provided to the minimum required to ensure the health of workers for maintenance of an economic investment.

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