1.10: Dependency Theory
Dependency Theory is a way of conceptualizing the effects of the modern globalized economy on poorer nations. As with social classes within a society, it is concerned with the interdependence between poor countries, where resources are extracted and goods are manufactured to be consumed in wealthier countries at low prices; and wealthier countries, which then sell those goods back to poorer countries at prices that deplete the poorer countries' resources, in a globalized alienation of labor. In this way, poorer countries may be somewhat "stuck" in their development, unable to get ahead. In some ways, Dependency Theory is considered a response to the "failure" of Modernization Theory.
Read this article, which lays out the role of dependency theory in global development and trade. It also includes historical perspectives and critiques of the theory.
Read this article to understand the arguments that dependency theorists make about industrialization and trade. It also offers some possible remedies to dependency.