Dependence 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.

At a Glance

Dependency Theory is an economic idea that seeks to explain why countries might become 'stuck' at a low level of income and wealth, and essentially argues that trade with the Global North and with large global corporations is to blame for this stagnation. The core idea is that richer countries extract resources and labour at very low costs from the Global South by exploiting their extensive market power, using these resources to create higher-value products that they then sell back to the Global South at much higher prices – and therefore maximising the value that is 'captured' in the Global North.


Source: Down to Earth Institute, https://downtoearth.institute/dependency-theory
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