del holds is a product of revisionist economics.5 It holds that underdeveloped countries are, controlled economically by developed countries. The model further holds that (1) under development is not an original state, (2) contemporary under development resulted from the economic imperialism of developed countries, (3) the economic surplus in developing countries is drained to developed countries, and (4) multinational business activity is the means of perpetuating dependency.
There is merit in each of the three theories. Each of the models may provide a valid explanation of under development and international trade problems, depending upon the conditions applicable to specific underdeveloped countries.
There are, however, factors which are general to the developmental and international trade problems of developing countries, regardless of which of the theoretical models is employed. These factors were described well by British economist A. P. Thirlwall. He, as is true of most contemporary economists, considers land to be a part of capital, although he does note that differences in the quality of land significantly affect the progress of economic development within countries.6 The quality of land offers a valid explanation as to why some countries develop or have developed at rates faster than those of their world neighbors. More rapid development may be spurred by land which permits highly productive agriculture, which, in turn, releases labor for employment in industry. It may also be spurred by land which provides the natural resources required for industrial development, or it may be spurred by a combination of these conditions, although such a combination has not occurred often.
Thirlwall contended that economic growth and development depends upon the formation of two types of capital human capital and financial capital. In this context, he considers the population of a country to be one of its basic resources,...