Abstract

This is a synthesis, where the author summarizes his theory of development and
underdevelopment. Some basic ideas are here presented: the economic theory of development
must start with the study of history; underdevelopment is a specific historical and
economical phenomenon, that cannot be thought of in terms of linear stages of history;
this historical phenomenon must be studied in structural terms, relating the history and the
economic aspects; the basic characteristic of underdevelopment is the dependency relation,
expressed in the center-periphery system; in the study of the development, the basic concept
to start with is the concept of social surplus, its forms of appropriation and utilization. The
paper ends with an analysis of the frustrations of a reformist. Protectionism, which was justifiable
in the first phase of industrialization, was maintained for too long in Latin America;
in the second phase, an active economic policy exports was necessary. On the other hand, the populist risk was always present, while the real social problems related to a high level of
income concentration were not solved.

JEL Classification: B22; E12; B31.