Dependency Theory

Definition

Dependency theory is a framework for understanding the economic and social dynamics between developed and developing countries, suggesting that the latter are conditioned by their historical and economic ties to the former. This theory posits that resources flow from the periphery (developing countries) to the core (developed countries), leading to a cycle of dependency that hinders development and perpetuates inequality. It highlights how trade networks and cultural exchanges can reinforce or challenge these power dynamics.

5 Must Know Facts For Your Next Test

1. Dependency theory emerged in the 1960s as a response to modernization theory, arguing that economic growth in developing countries is often impeded by their dependence on developed nations.
2. It emphasizes that historical exploitation during colonialism laid the groundwork for ongoing economic disparities between developed and developing countries.
3. Trade networks established by developed nations often prioritize their interests, leading to unequal exchanges that reinforce dependency.
4. Cultural exchanges can also reflect dependency dynamics, where dominant cultures overshadow local traditions, further entrenching inequality.
5. Dependency theory has influenced various social movements advocating for economic justice and sustainable development practices that challenge exploitative relationships.

Review Questions

• How does dependency theory explain the relationship between developed and developing countries?
  • Dependency theory explains that developing countries are economically tied to developed countries through historical exploitation and ongoing resource flow. This creates a dependency where wealth is extracted from the periphery to enrich the core. The framework highlights how this unequal relationship restricts growth opportunities for developing nations while benefiting the developed ones, thus perpetuating cycles of poverty and inequality.
• Evaluate the impact of trade networks on the development of dependency theory in understanding global economics.
  • Trade networks play a crucial role in shaping dependency theory by illustrating how resource flows favor developed nations at the expense of developing ones. These networks often create imbalances where commodities are exported from poorer countries without fair compensation, reinforcing economic dependency. This understanding allows for a critique of global trade practices and suggests the need for reforms that prioritize equitable exchanges and support for developing economies.
• Analyze how globalization interacts with dependency theory and its implications for cultural exchange.
  • Globalization interacts with dependency theory by intensifying existing inequalities through expanded trade networks that often exploit developing nations. As global markets integrate, local cultures can be overshadowed by dominant foreign influences, perpetuating cultural dependency. This dynamic raises concerns about cultural homogenization, where unique traditions may be lost under pressure to conform to global standards, highlighting the need for protective measures that empower local communities while challenging exploitative practices.

Related terms

Core-Periphery Model: A model that describes the spatial distribution of economic, political, and cultural power, emphasizing the relationship between economically dominant core areas and their dependent periphery.

Neocolonialism: The practice of using economic, political, and cultural pressures to control or influence developing countries, often resulting in continued dependence on former colonial powers.

Globalization: The process by which businesses or other organizations develop international influence or operate on an international scale, impacting trade networks and cultural exchanges worldwide.