Dependency theory

Definition

Dependency theory is a social science concept that suggests the economic development of a country is heavily influenced by its historical and political relationships with more developed nations. This theory posits that many countries, particularly those in the Global South, remain economically dependent on wealthier nations, which hinders their own development and perpetuates inequality. The impact of this theory is particularly significant in understanding the dynamics between colonized societies and their colonizers.

5 Must Know Facts For Your Next Test

1. Dependency theory emerged in the mid-20th century as a critique of modernization theories that suggested all countries would inevitably progress to developed status.
2. It highlights how historical exploitation during colonial times has created lasting economic structures that favor developed countries over developing ones.
3. The theory argues that the reliance on foreign aid and investment can create a cycle of dependency, preventing true economic independence for developing nations.
4. Dependency theory emphasizes the importance of understanding the global capitalist system and its role in maintaining inequalities between nations.
5. Critics of dependency theory argue that it oversimplifies complex economic relationships and ignores factors within developing countries that may contribute to their underdevelopment.

Review Questions

• How does dependency theory explain the relationship between colonized societies and their colonizers?
  • Dependency theory explains that colonized societies became economically dependent on their colonizers through exploitative practices that prioritized the interests of the colonizers. This relationship established systems of extraction where raw materials were sent to the colonizing country while manufactured goods were brought back, reinforcing an unequal economic structure. As a result, these societies faced significant challenges in achieving self-sustained growth post-colonization due to their entrenched dependency on wealthier nations.
• What are some examples of how dependency theory has been applied to understand economic issues in post-colonial societies?
  • Dependency theory has been applied to various post-colonial contexts, such as examining how former colonies struggle with debt burdens due to loans from developed countries or international institutions. It also highlights how these nations are often locked into unfavorable trade agreements that prevent them from diversifying their economies. For instance, many African countries depend heavily on exports of raw materials while importing manufactured goods, demonstrating the ongoing impact of colonial economic structures.
• Evaluate the strengths and weaknesses of dependency theory in analyzing global economic disparities.
  • The strengths of dependency theory lie in its ability to illuminate the historical context of economic inequalities and highlight how colonial exploitation has shaped modern dependencies. However, its weaknesses include a tendency to overlook internal factors that contribute to underdevelopment in these nations, such as governance issues or social conflicts. Additionally, some critics argue that dependency theory may foster a victim mentality by suggesting developing countries are powerless against external forces, rather than focusing on potential pathways for self-determined development.

Related terms

Colonialism:

A practice where a powerful country establishes control over a less powerful region or country, often exploiting its resources and people for economic gain.

Neocolonialism: The continued economic and political influence of former colonial powers over their former colonies, often through indirect means such as trade agreements or investments.

Core-Periphery Model: A framework that describes the relationship between developed (core) countries and developing (peripheral) countries, emphasizing how resources and wealth flow from periphery to core nations.