Theories of development: dependency

Understanding Dependency Theory

Dependency theory is a perspective in sociology that argues that impoverished nations are at a disadvantage due to their position in the global economy. The theory emerged as a counter-argument to modernisation theory which considered development to be linear and universally applicable.
Dependency theorists suggest that there is a global power hierarchy where certain countries dominate others. They focus on economic, political and historical reasons for disparities between developed and underdeveloped countries.
According to this theory, the economic prosperity of the developed (or ‘core’) countries often comes at the expense of the underdeveloped (or ‘peripheral’) countries. This dependence, they argue, is systemic and intentional.

Core Concepts of Dependency Theory

The theory highlights the issue of economic exploitation of poorer nations by wealthier ones. It argues that core countries extract resources from peripheral countries, who in turn grow reliant on selling their raw materials cheaply.
Historical context, such as colonialism, also plays a role. Dependency theorists argue that historical exploitation of peripheral countries has led to a lasting economic imbalance.
The mechanism of international trade and finance systems are seen as further perpetuating these inequalities. Unfair trade agreements and loans often place peripheral nations in chronic debt, reinforcing their dependency.

Criticisms of Dependency Theory

Critics question if the theory’s one-dimensional view of global power relations is adequate. The theory presents a stark division between core and peripheral countries, ignoring the complexities and variations within each group.
Dependency theory tends to overemphasise economic factors, often sidelining other aspects (cultural or social) that can also have significant impacts on a country’s development.
Some argue the model assumes the passivity of peripheral countries, which might ignore their agency and initiatives in affecting their own socio-economic future.

Implications for Development

For dependency theorists, a path towards development would require breaking free of these dependency relations, possibly by implementing protectionist measures, diversifying economies, or renegotiating international agreements.
They also advocate for a redistribution of power at the global level to address the systemic issues producing and maintaining inequalities. However, achieving such a change is a complex task and prone to many obstacles.

Dependency Theory and Global Perspective

Dependency Theory offers a global perspective on development, stressing on international relations and inequality among nations.
Its focus on systemic inequalities and exploitation offers a critical viewpoint to understand global dynamics and challenges the notion of individual country blame for underdevelopment.