Dependency Theory

Definition

Dependency theory is a social science perspective that explains the economic and political dynamics between developed and developing countries, emphasizing how the former often exploit the latter. This theory argues that the wealth of developed nations is rooted in the exploitation of resources and labor from less developed nations, leading to a cycle of dependency that hinders the latter's growth and development. It connects deeply to issues of state formation as it highlights how historical contexts of colonialism and imperialism have shaped the structures and relationships between states.

5 Must Know Facts For Your Next Test

1. Dependency theory emerged in the late 1950s and 1960s as a critique of modernization theory, which suggested that all countries follow a linear path to development.
2. It highlights how global trade patterns often favor developed countries, leading to unequal economic relationships that perpetuate poverty in developing nations.
3. The theory emphasizes that external factors, such as multinational corporations and foreign aid, can reinforce dependency rather than promote genuine development.
4. Key proponents of dependency theory include economists like André Gunder Frank and sociologist Theotonio dos Santos, who argued against simplistic notions of development.
5. Dependency theory has faced criticism for its determinism and for not accounting sufficiently for internal factors that may affect a country’s development trajectory.

Review Questions

• How does dependency theory explain the relationship between developed and developing countries in terms of economic growth?
  • Dependency theory explains that developed countries often maintain their wealth by exploiting the resources and labor of developing countries. This relationship creates a cycle where developing nations become reliant on foreign investment and aid, which can inhibit their economic growth. As a result, these countries may struggle to achieve self-sustaining growth due to the structural inequalities embedded in global trade systems.
• In what ways does colonialism play a role in shaping the dependencies identified by dependency theory?
  • Colonialism established initial patterns of exploitation where colonizers extracted resources from colonies while leaving behind underdeveloped infrastructures. These historical injustices have lasting impacts on former colonies, often leading to economic structures that benefit developed nations at the expense of local economies. Dependency theory posits that this legacy of colonial exploitation continues to affect trade relationships today, perpetuating cycles of dependency.
• Evaluate how globalization interacts with dependency theory and its implications for state development in the contemporary world.
  • Globalization interacts with dependency theory by intensifying economic disparities between nations. While globalization has created opportunities for some developing countries to integrate into global markets, it often reinforces existing dependencies through unequal trade agreements and dominance by multinational corporations. The implications for state development are significant; while some states may experience rapid growth, many others remain locked in a cycle of dependence, struggling to assert sovereignty over their economic policies due to external pressures. This dynamic raises questions about genuine development versus superficial integration into the global economy.

Related terms

Colonialism: The practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting its resources.

Neocolonialism: The use of economic, political, and cultural pressures to control or influence a country, especially former colonies, without direct military or political intervention.

Globalization: The process by which businesses or other organizations develop international influence or operate on an international scale, often affecting economic disparities.