Dependency

Definition

Dependency refers to the reliance or contingency of one entity, individual, or system on another. It describes a state of being influenced, controlled, or determined by external factors or forces, rather than being self-sufficient or autonomous.

5 Must Know Facts For Your Next Test

1. Dependency theory in sociology explains how the global economic system perpetuates the unequal relationship between developed and developing countries.
2. Developing countries often rely on the export of raw materials and agricultural products, making them vulnerable to fluctuations in global commodity prices.
3. Multinational corporations and international financial institutions can exert significant influence over the economic policies of developing countries, leading to a state of dependency.
4. Dependency can manifest in various forms, such as economic, political, cultural, or technological dependence, which can limit a country's ability to make autonomous decisions.
5. Overcoming dependency often requires structural changes, such as diversifying the economy, investing in domestic industries, and reducing reliance on external actors.

Review Questions

• Explain how the concept of dependency relates to global stratification and the unequal distribution of power and resources between developed and developing countries.
  • The concept of dependency is central to understanding global stratification and the unequal relationship between developed and developing countries. Dependency theory suggests that the global economic system is structured in a way that perpetuates the dependence of developing countries on the resources, technology, and economic policies of more powerful, developed nations. This dependence often leads to the exploitation of developing countries, as they are forced to export raw materials and agricultural products at low prices while importing manufactured goods at higher prices. This unequal exchange reinforces the economic and political dominance of developed countries, making it difficult for developing countries to break free from this cycle of dependency and achieve self-sufficient, autonomous development.
• Describe how multinational corporations and international financial institutions can contribute to the state of dependency experienced by developing countries.
  • Multinational corporations and international financial institutions, such as the International Monetary Fund (IMF) and the World Bank, can exert significant influence over the economic policies and decision-making processes of developing countries. Through foreign direct investment, loans, and structural adjustment programs, these powerful entities can dictate the economic strategies of developing countries, often prioritizing the interests of the global North over the long-term sustainable development of the global South. This can lead to a situation where developing countries become reliant on external actors for economic growth and are unable to make autonomous decisions, further entrenching their state of dependency and limiting their ability to chart their own development path.
• Analyze the potential strategies that developing countries can employ to overcome dependency and achieve greater self-sufficiency and autonomy in the global economic system.
  • To overcome dependency and achieve greater self-sufficiency and autonomy, developing countries can employ various strategies. These may include diversifying their economies by investing in domestic industries, reducing reliance on the export of raw materials and agricultural products, and promoting the development of value-added manufacturing and services. Developing countries can also seek to renegotiate the terms of trade with developed countries, aiming for more equitable exchange and a fairer distribution of the benefits of global economic integration. Additionally, developing countries can work to strengthen regional economic cooperation and integration, creating larger domestic markets and reducing their dependence on external actors. Ultimately, overcoming dependency requires a comprehensive approach that addresses the structural, political, and economic barriers to autonomous development, empowering developing countries to chart their own path towards sustainable and inclusive growth.

Related terms

Interdependence: A relationship where two or more entities are mutually reliant on each other, creating a state of mutual dependence.

Underdevelopment: A condition where a country or region lacks the necessary resources, infrastructure, and economic development compared to more advanced nations.

Neocolonialism:

The indirect control or influence of a country over another, often through economic, political, or cultural means, rather than direct colonial rule.