Dependency Theory Essay

929 words - 4 pages

Dependency theory appeared in the 20th century 50`s. The main topics that are included in dependency theory are historical materialism connected with other critical traditions, a partnership between developed countries and developing countries, interaction between a core and a periphery. Dependency theory mainly is used to talk about Western societies and Third World countries.
Foundation of the dependency theory is Marxism, also it prefigures post- structuralism, and the dependency theory stands for opposite opinion about economical growth and its affect, than neoliberals do. The Dependency theory doesn’t look at economical activities from positive side, especially when it is done by world’s richest countries. Richest countries economical activities always affect poorer countries, especially they cause economical problems. The dependency theory has evolved from two main sources, first is from the United States and other is from Latin America. In the United States the dependency theory developed because of the socialist journal Monthly Review, where neo- Marxist thoughts were summarized and were published a publications about different social organizations. Previously the dependency theory was called as theory of monopoly capitalism, but later it was recalled as we know it now. The thought about the dependency theory rose from observed stagnation in the Third World, where bourgeoisies were acting like they want and did not take into account other opinions. If school of neo- Marxist thinking was more connected with bourgeoisies, capitalist imperialism, stagnation then the second source of the dependency theory from Latin America concentrated more concrete about economic. The central element of input of Latin America was critical radical economic thinking. Latin America had huge economical problems, so the thought of dependency theory developed faster. Thanks to popularity of dependency theory in Latin America, there was an interest about it from other countries. Andre Gundre Frank was one of the writers who spread the dependency theory farther.
The dependency theory is closely connected with external problems and other external factors that could affect countries` foreign policy, economical system and situation, for example, resources and colonial control. The periphery countries are closely connected

with actions what happen elsewhere in the world, because those countries are dependent on other countries and their economical situation.
The main thing whit what dependency theory is different from other theories that is connected with development is that it divides world countries into groups. The dependency theory shows the partnership between two sides – core and periphery, or metropole and satellite. The core consist of developed countries who have recourses and economical and political power, but the periphery consist of countries like the Third World, from countries which need economical help from other countries or organizations,...

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