dependency theory

This episode is unusual, more like part of a mini-lecture series. I was asked to give a talk recently on inequality, development, and IR theory for an audience that skews quite young. I’ve chopped it up to just bring out the highlights, but we hit many topics that might be of interest:

—Why IR paradigms are not especially useful for making sense of inequality.

—Why it sucks to be poor, no matter what flag you live under.

—Capitalism v. Marxism, and by proxy, modernization theory v. dependency theory.

—Why the East Asian development model is at its end.

—Why it can be useful to think of political economy as a capitalist world system.

—Why redistribution is the only alternative to revolution if you want to reduce inequality.

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One of the many ways in which India has expanded its influence in global affairs relates to pharmaceutical products. The Indian pharmaceutical sector has enthusiastically highlighted its ability to develop Triple A technology (affordable, available, adaptable). By encouraging research hubs and offering a steady supply of affordable drugs to many countries, including the United States, India has rapidly moved from being a pharmacy for low-income countries to becoming the “pharmacy of the world”. 

The country’s rapidly growing economy has been a major beneficiary of the astonishing rise of the domestic pharmaceutical industry. In becoming a powerhouse on low-cost generic drugs, India contributes actively to meeting global demands for vaccines, Over the Counter (OTC) medicines and patented drugs.

An important factor that has contributed to enhancing the reputation and profitability of Indian pharmaceutical companies abroad has been the government’s tough policy on patents, which has enabled Indian firms to manufacture generic versions of drugs that are much more expensive in countries where they were originally developed. 

But Indian companies also face numerous challenges in the export market. There is a growing demand to reduce costs even further. And several countries in Latin America, Sub-Saharan Africa and Southeast Asia are trying to protect and promote their domestic industries by introducing new regulations that make Indian imports more expensive. There are also concerns that India has become increasingly dependent on imports from China for so-called “active pharmaceutical ingredients” required for making both advanced and essential medicines.

To discuss India’s huge and thriving pharmaceutical industry and the country’s ability to supply affordable vaccines and generic drugs to low-income countries, I am joined by Rory Horner. He is a Senior Lecturer in Globalisation and Political Economy in the Global Development Institute at the University of Manchester. We began by discussing the role and impact of the pharmaceutical industry in global development. 

• Resources:
  • "The world needs pharmaceuticals from China and India to beat coronavirus" (The Conversation, 2020)
  • "India is key for global access to a COVID-19 vaccine – here’s why" (The Conversation, 2020)
  • "The segmented globalisation practices within India’s pharmaceutical industry" (blog, 2017)
  • "Pharmaceuticals and the Global South: a healthy challenge for development theory?" (blog, 2016)
  • "Indian Company Offers to Supply AIDS Drugs at Low Cost in Africa" (New York Times, 2001)
  • Rory Horner on Twitter
  • Dan Banik and In Pursuit of Development on Twitter

Host

Professor Dan Banik (@danbanik @GlobalDevPod)

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Ingrid Harvold Kvangraven's research focuses on the role of finance in development, structural features of underdevelopment, the political economy of development (including the role of international institutions), and critically assessing the economics field.

Dr. Kvangraven is currently an Assistant Professor in International Development at the University of York’s Department of Politics. She is the founder and editor of  Developing Economics and founder and steering group member of Diversifying and Decolonising Economics (D-Econ).

Resources

• Ingrid's website
• Beyond The Stereotype: How Dependency Theory Remains Relevant
• If we want to tackle global inequality, we need better economic theories
• ‘Impoverished economics? A critical assessment of the new gold standard
• The Wall Street Consensus (Daniela Gabor)
• Follow Ingrid Hvangraven on Twitter
• In Pursuit of Development on Twitter

Host

Professor Dan Banik (@danbanik @GlobalDevPod)

Apple Google Spotify YouTube

Subscribe: 

https://globaldevpod.substack.com/