Dependency Theory

1. global capitalism

1.1. This global capitalist structure is organised so that the rich ‘core nations’ like the USA and the UK are at one end, and the undeveloped or ‘peripheral nations’ are at the other end. The core exploits the periphery through its economic and military dominance.

2. Andre Gunder Frank

2.1. argues that the developed West has 'underdeveloped' developing nations effectively by relegating them to a state of dependency.

2.2. the global capitalist system we know today developed in the sixteenth century. Through its processes, nations in Latin America, Asia, and Africa became involved in a relationship of exploitation and dependency with the more powerful European nations.

2.3. Frank further argued that the developed nations kept the developing countries in a state of underdevelopment to profit off their economic weakness

2.3.1. In poorer countries, raw materials are sold at lower prices, and workers are forced to work for lower wages than in developed countries with higher living standards.

2.4. developed nations actively fear losing their dominance and prosperity to the development of poorer countries.

3. it is broadly based on a Marxist theory of devepolment

3.1. the ex-colonies are being economically exploited by former colonial powers and need to isolate themselves from capitalism and the ‘free market’ in order to develop.

4. historical exploitation

4.1. Under colonialism, powerful nations took control of other territories for their own benefit. The countries under colonial rule essentially became part of the 'mother country' and were not seen as independent entities. Colonialism is fundamentally linked to the idea of 'empire building’ or imperialism. 'Mother country' refers to the country of the colonisers.

4.2. Frank argued that the prime period of colonial expansion took place between 1650 and 1900, when Britain and other European nations used their naval and military powers to colonise the rest of the world.

5. Rostow