Dependency Theory

dependency_theory

Why some countries are not developed and others are growing very rapidly and considerably boosting their economy?

General opinion of people about underdeveloped countries is that these countries don’t have proper economic plans and their governments are corrupt and authoritative which hinder development. On the other hand dependency theory explains this problem from a very different prospective; dependency theory says that the international system economy is not allowing development of periphery countries. The international economic relationship of countries is exploitative. Some so called developed or core countries dominate developing or periphery countries. These cores countries make such policies which directly or indirectly affects the growth of periphery countries. Here are few very important factors which causing countries to remain poor. Firstly, international division of labour, core countries has more money, modern technology, skillful labour, and high rates of education. They have big industries with the most advance technology. They can produce massive amount of products within few span of time. Whereas, periphery countries have very limited resources with huge number of unskilled workers; therefore, core countries use these periphery countries for raw material and for unskilled manpower. Core country get raw material for cheep prizes, make finished products and sell them back to periphery countries for high cost. In this way core countries get rich and richer whereas, periphery countries get poor and poorer. Second is class distinction: all the political and economical elite class of all the countries around the world cooperates with each other to maintain their power and to get more power in upcoming days due to which periphery countries remain marginalized and even lower class people in developed countries remain poor because of such conspiracies by upper class. Thirdly, global capitalism has a big hand behind unequal distribution of wealth among people. The multi-corporations, international institutes and banks all serve the interest of core countries and upper class people. Such systems promote underdevelopment and prevent development of periphery countries.

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