Dependency

Definition

Dependency refers to a socio-economic condition where a country relies heavily on another country for resources, technology, or financial support, often leading to an unequal relationship. This concept is crucial in understanding global economic dynamics and the limitations it places on the dependent nation’s ability to grow independently. The notion of dependency also ties into broader discussions about exploitation and the consequences of uneven development in international relations.

5 Must Know Facts For Your Next Test

1. Dependency theory emerged in the 1950s and 1960s as a critique of modernization theory, arguing that development is not a linear process and that poorer countries are often exploited by wealthier ones.
2. The dependency relationship can lead to stagnation in economic growth for dependent countries, as they may lack control over their own resources and economic policies.
3. Countries in a dependency relationship often experience limited technological advancement since they rely on imports from wealthier nations.
4. Dependency theory emphasizes the importance of historical contexts, such as colonialism, that created these imbalanced relationships between nations.
5. This theory has influenced various social movements aimed at achieving economic independence and sovereignty for developing nations.

Review Questions

• How does dependency impact the economic growth of developing nations?
  • Dependency can severely restrict the economic growth of developing nations by tying them to wealthier countries for resources, technology, and investment. This reliance means that dependent countries may not develop their own industries or capabilities, as they often prioritize meeting the needs of their more powerful partners. Consequently, this creates a cycle of underdevelopment, where the dependent nation remains vulnerable to external market fluctuations and decisions made by the core countries.
• Evaluate the criticisms of dependency theory regarding its explanation of global economic relations.
  • Critics of dependency theory argue that it oversimplifies complex global economic relationships and fails to consider factors such as domestic policies and governance in developing countries. Some suggest that dependency theory does not account for the varying paths nations can take toward development and that some countries have successfully transitioned from being dependent to independent through strategic planning and investment. This critique emphasizes the need for a more nuanced understanding of how nations interact within the global economy.
• Assess how globalization has influenced dependency dynamics between nations in recent decades.
  • Globalization has significantly impacted dependency dynamics by intensifying the interconnectedness between nations, often reinforcing existing inequalities. While globalization has allowed for greater access to markets and technology for developing nations, it has also resulted in deeper dependency on multinational corporations and foreign investments. This duality means that while some countries may experience growth through globalization, others risk becoming more entrenched in their dependency relationships, as they may rely heavily on foreign capital and expertise, leaving them vulnerable to external economic shifts.

Related terms

Core-Periphery Model: A theory that categorizes countries into core (developed) and periphery (developing) nations, illustrating how wealth and resources flow from the periphery to the core.

Neocolonialism: A modern form of colonialism where powerful countries maintain control over less developed nations through economic and political pressures rather than direct military control.

Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale, often exacerbating dependency relationships.