Dependency theory

Definition

Dependency theory is a social science concept that explains the economic and political relationships between developed and developing nations, suggesting that the latter are often dependent on the former for resources, technology, and capital. This theory highlights how the global economy perpetuates inequalities, keeping poorer nations in a state of dependency while wealthier nations maintain dominance. It critiques traditional development theories by emphasizing that underdevelopment is not merely a stage but a condition shaped by historical and structural factors in the global market.

5 Must Know Facts For Your Next Test

1. Dependency theory emerged in the late 1950s and 1960s as a critique of modernization theory, arguing that development efforts often reinforce existing inequalities rather than resolve them.
2. The theory suggests that the economic structures of developing countries are shaped by their historical exploitation through colonialism and ongoing neocolonial practices.
3. Dependency theorists argue that global capitalism creates a dynamic where wealth flows from the periphery to the core, preventing equitable development.
4. Many dependency theorists advocate for alternative development strategies that focus on self-sufficiency and the empowerment of local economies rather than reliance on foreign investment.
5. The rise of globalization has intensified discussions around dependency theory, as many argue that it exacerbates existing inequalities between nations in an interconnected world.

Review Questions

• How does dependency theory challenge traditional views of economic development?
  • Dependency theory challenges traditional views by arguing that underdevelopment is not simply a lack of resources or technology but is a direct result of exploitative relationships established through colonialism and maintained through global capitalism. It emphasizes that developing nations are often kept in a state of dependency, hindering their ability to achieve self-sustaining growth. This critique questions the effectiveness of one-size-fits-all development models that ignore the historical context and power dynamics at play.
• Discuss how globalization relates to dependency theory and its implications for developing countries.
  • Globalization relates to dependency theory by illustrating how interconnectedness can exacerbate existing inequalities between developed and developing countries. As global markets expand, developing nations often find themselves reliant on foreign investment and trade agreements that prioritize the interests of wealthy nations. This reliance can perpetuate cycles of poverty and underdevelopment, as local economies struggle to compete with larger, more powerful entities. Dependency theorists argue that globalization should be approached critically to ensure it does not reinforce these imbalances.
• Evaluate the impact of dependency theory on contemporary development policies and practices in developing countries.
  • Dependency theory has significantly influenced contemporary development policies by prompting a reassessment of how aid and investment strategies are implemented in developing countries. It encourages policymakers to prioritize local needs and promote self-sufficiency rather than relying solely on external resources. Additionally, it has inspired movements advocating for fair trade practices and sustainable development approaches that challenge neocolonial frameworks. By fostering critical perspectives on global power dynamics, dependency theory continues to shape discussions around equitable growth in today's interconnected world.

Related terms

neocolonialism: The practice of using economic, political, or cultural pressures to control or influence other countries, particularly former colonies, without direct military or political control.

core-periphery model: A framework that categorizes countries into core (developed), semi-periphery, and periphery (developing) based on their economic and political power within the global system.

globalization: The process by which businesses or other organizations develop international influence or operate on an international scale, often affecting economic and political relations between nations.