what does Dependency theory means ?

It focuses on the relationship between wealthy and impoverished ones . It rejects the assumption that capitalism is the best means of economic development of improvised states.

it aims to explain the economic disparities between the rich Western countries known as north and the poor countries of Asia Latin America known as global South.

Some important scholars who are the main proponents of the dependency theory in Marxist tradition are Immanuel Wallerstein, Samir Amin, Andre Gunder Frank.

dependency theory emerged at a time when modernization theory to understand development was being criticize in 1960s. As modernization theory came from developed states , dependency theory came from developing countries.

There are various strains of dependency theory because of intellectual disagreements among the liberal reformers (Prebisch), the Marxists (Andre Gunder Frank) and the World-system theorists (Wallerstein).

The debate in Marxism give raises two categories of thought, namely: (i) The reformist group (Karl Kautsky and Joseph Schumpeter). (ii) The revolutionists' group (Rosa Luxemburg, N.I. Bukharin, and Lenin).

Emergence of dependency school

In the 1950s and 1960s, numerous colonial countries gained independence from colonial rule and grappled with the challenges of the global Cold War. The former colonial powers were determined to prevent these newly independent states from aligning with communist regimes and actively promoted the establishment of capitalist economies.

Walt Rostow's influential work on economic modernization advocated for developing countries to engage in free trade with the rest of the world as a means to foster competition and stimulate growth.

RAUL PRESBISCH

He argued that the economic growth in the advanced industrialized countries did not necessarily lead to the growth in poorer countries.

A.G Frank (Italian Marxist scholar)

According to Andre Gunder Frank, Latin America witnessed its peak industrialization rates from the conclusion of World War I to the onset of World War II.

The development of underdeveloped book

He discusses the factors that have resulted in underdeveloped of certain areas of the world & rapid development in others. His theory was based on paul baran’s theory.

Economic surplus= production - consumption

Dependency theory posits that global economic relations are characterized by domination and exploitation by more powerful nations over less economically endowed ones. It contends that the key to breaking free from this cycle of dependence lies in the development of self-sufficient economies in less affluent countries, enabling them to compete effectively on the global arena.

He contended that the lack of progress in developing nations is not primarily due to 'internal barriers to development,' as suggested by modernization theorists. Instead, he asserted that the developed West has intentionally hindered their development, perpetuating a state of dependency.

key assumptions of dependency theory include

the idea that the global economic system is biased towards richer countries

this system perpetuates a cycle of dependency and underdevelopment in poorer countries.