Dependency theory

Definition

Dependency theory is a social and economic theory that argues that resources flow from a periphery of poor and underdeveloped countries to a core of wealthy countries, enriching the latter at the expense of the former. This theory suggests that the economic conditions of underdeveloped nations are influenced by their relationships with developed nations, often leading to a cycle of dependency that hampers growth and development in the former.

5 Must Know Facts For Your Next Test

1. Dependency theory gained prominence in the 1960s and 1970s as a critique of modernization theory, which posited that all countries could follow a similar path to development.
2. The theory emphasizes that historical exploitation during colonialism has lasting effects on the economic structures of developing nations.
3. Critics argue that dependency theory oversimplifies complex global dynamics and ignores internal factors that contribute to underdevelopment.
4. Key proponents of dependency theory include scholars like André Gunder Frank and Immanuel Wallerstein, who highlighted how capitalist economies depend on the exploitation of less developed regions.
5. Dependency theory has influenced various social movements and policies aimed at achieving economic self-sufficiency in developing nations.

Review Questions

• How does dependency theory explain the economic challenges faced by underdeveloped nations?
  • Dependency theory explains that underdeveloped nations face economic challenges primarily due to their reliance on wealthy countries for resources and capital. This relationship creates a cycle where wealth is extracted from the periphery to benefit the core, leaving underdeveloped nations in a state of poverty and underdevelopment. By positioning these countries in a subordinate role within the global economy, dependency theory highlights how external factors inhibit their ability to grow independently.
• Discuss how dependency theory critiques traditional views of development and modernization.
  • Dependency theory critiques traditional views of development by arguing that modernization theory fails to consider the historical context of exploitation and inequality between nations. While modernization theory suggests that all countries can follow a linear path to development, dependency theorists assert that this perspective ignores how colonial histories and ongoing economic dependencies hinder progress in developing countries. This critique calls for a reevaluation of what constitutes development and highlights the need for more equitable international relations.
• Evaluate the relevance of dependency theory in understanding global inequalities in the contemporary world.
  • Dependency theory remains relevant in analyzing global inequalities today by providing insights into how past colonial relationships have shaped modern economic disparities. It highlights how neocolonial practices continue to perpetuate unequal power dynamics between developed and developing nations. Furthermore, dependency theory encourages critical examination of globalization processes, showing how they can reinforce existing inequalities rather than alleviate them. This evaluation reveals the complexities of economic relationships and calls for policies that empower developing nations rather than sustain cycles of dependency.

Related terms

Imperialism: A policy or ideology where a country extends its power and influence through colonization, military force, or other means, often exploiting the resources of other regions.

Neocolonialism: A practice where former colonial powers continue to exert economic control over former colonies, often through indirect means such as trade agreements and foreign aid.

Globalization: The process by which businesses or other organizations develop international influence or operate on an international scale, often leading to increased interdependence between countries.