Dependency Theory

Summary

This video, presented by Alan S at the Leu Institute for Global Issues, introduces Dependency Theory, a concept from the 1960s and 1970s exploring why many countries struggle to develop. Dependency theorists argue that the global economic system is exploitative, with wealthier 'core' countries benefiting at the expense of poorer 'peripheral' nations. This international division of labor, along with class distinctions and global capitalism, perpetuates inequality and underdevelopment. The theory suggests that the system itself prevents countries from progressing, raising important questions about poverty and inequality in global politics.

Takeaways

• 🌍 Dependency Theory emerged in the 1960s and 1970s from Central and South America, questioning why many countries are not developing.
• 💼 Traditional explanations for underdevelopment focused on poor policies or corrupt governments, but dependency theorists argue the international system itself prevents development.
• 🌐 Dependency Theory suggests that the global system is exploitative, with dominant countries exerting control over weaker ones.
• 🏦 There are different types of countries in the global economy: core countries (wealthy and powerful), semi-peripheral countries (less powerful but still developed), and peripheral countries (poor and underdeveloped).
• 🏭 Core countries dominate in industry, technology, and capital, while peripheral countries are focused on resource extraction, agriculture, and cheap labor.
• 🛠 Peripheral countries serve the economic interests of wealthier countries, perpetuating a system where wealth and power flow toward the center.
• 💰 Dependency Theory highlights a class distinction within countries, with wealthy elites collaborating to maintain global inequalities.
• 📈 The global capitalist system, characterized by liberal economic policies, serves the interests of wealthy nations and multinational corporations.
• 📚 International institutions, such as the World Bank and IMF, along with global media and education systems, reinforce this unequal structure.
• ⛔ Dependency theorists argue that the system promotes 'underdevelopment,' preventing poorer countries from achieving true economic progress.

Q & A

What is Dependency Theory and when did it emerge?

Dependency Theory is an approach that argues that the global economic system prevents certain countries from developing due to exploitative relationships. It emerged in the 1960s and 1970s in Central and South America.

What traditional explanation did Dependency Theory challenge?

Dependency Theory challenged the traditional explanation that countries weren't developing due to poor economic policies, authoritarian governments, or corruption. Instead, it argued that the international system itself was responsible for preventing development.

How does Dependency Theory classify different countries?

Dependency Theory classifies countries into several categories: countries at the center of the center (richest and most powerful), periphery of the center (wealthy but less globally dominant), center of the periphery (developing but relatively wealthy), and periphery of the periphery (poorest countries).

What role do core countries play in the international division of labor according to Dependency Theory?

Core countries, or countries at the center of the center, dominate the world economy in terms of industry, technology, and capital-intensive sectors. They benefit from the labor and resources of peripheral countries, which serve their economic interests.

What is the relationship between countries on the periphery and core countries?

Peripheral countries, especially those at the periphery of the periphery, are often involved in resource extraction, agriculture, and providing cheap labor. Their economies serve the interests of wealthier countries in the center, leading to a system of exploitation.

How does Dependency Theory describe the class distinctions within countries?

Dependency Theory argues that in all countries, there is a small, wealthy elite class that collaborates with wealthy elites in other countries. These elites work together to maintain their power and wealth, reinforcing the existing global economic structure.

What global system underpins the economic and class structures described by Dependency Theory?

Global capitalism underpins these structures, where liberal economic theory, free trade, and multinational corporations dominate. These systems serve the interests of the richest countries and people, maintaining economic inequality.

What role do international institutions play according to Dependency Theory?

International institutions like the World Bank and the International Monetary Fund (IMF) are seen by Dependency Theorists as serving the interests of the richest countries, reinforcing the existing global economic inequalities rather than helping developing nations.

What is the concept of 'underdevelopment' in Dependency Theory?

Underdevelopment refers to the idea that the international system is structured in a way that actively prevents countries from developing. Dependency theorists argue that the current system promotes exploitation and keeps poorer countries from advancing.

Why is Dependency Theory still relevant today, according to the video?

Though less prominent today, Dependency Theory remains relevant because it provides insight into why global poverty and inequality persist. It argues that the international system still prevents many countries from developing, much like it did in the 1960s and 1970s.