• 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.