Dependency theory views development and underdevelopment as relational between core wealthy nations that dominate the global economic system and poorer peripheral nations. It argues that peripheral nations mainly function to provide cheap labor and raw materials to core nations, with the benefits primarily accruing to the wealthy nations as they grow richer while poorer nations have their resources drained and do not advance economically. Dependency theorists believe underdeveloped nations must break ties with developed nations and pursue internal growth, such as through import substitution industrialization policies, in order to develop.

1. Dependency theory
INTERNATIONAL COMMUNICATION

2. Lecture 3 theories 2
 Dependency Theory
 While Modernization Theory understood development and underdevelopment
as a result from internal conditions that differ between economies, dependency
theory understood development and underdevelopment as relational.
 It saw the world's nations as divided into a core of wealthy nations which
dominate a periphery of poor nations whose main function in the system is to
provide cheap labour and raw materials to the core.
 It held that the benefits of this system accrue almost entirely to the rich nations,
which become progressively richer and more developed, while the poor nations,
which continually have their surplusses drained away to the core, do not
advance.
 Developed in the 1950s, dependency theory shared many points with Rosa
Luxembourg's and V.I. Lenin's earlier, Marxist, theories of imperialism; and
dependency theory was embraced by many Marxists and neo-Marxists.
 Dependency theorists held that for underdeveloped nations to develop, they
must break their ties with developed nations and pursue internal growth. One
type of policy crafted from this insight was Import substitution
industrialization.eveloped and lesser developed countries.

3. Lecture 3 theories 3
 Dependency Theory
 Basis its roots in the Latin American historical experience
 1. which had been long in long contact with European
imperialism.
 2. Been colonized in the 15th century BC and did not regain
independence until first two decades of the 19thh century.In
the 1960s social scientist begun to construct theories to explain the
inability of Latin American countries to escape from limits imposed
upon them by their former colonial powers and by both political and
economic dominance by the USA.
 B. Dependence- means a situation in which the economy of certain
country is conditioned by the development and expansion of other
economies to which the former are subjected.
 C. Sometimes termed neo colonialism- the survival of the colonial
system in spite of formal recognition of political independence in
emerging countries.

4. Lecture 3 theories 4
 Dependency Theory
 Tenets:
 1. All developing and underdeveloped states are depended on the developed
as for technology, finance and capital, monetary systems and trade. Capitalist
has monopoly over means of production.
 2. Dependency and monopoly is synonymous with control of exploitation.
 3. Dependency is a result of the incorporation of the developing countries
into the capitalist system Incorporation was a result of imperialism and
colonialism which saw the building of the first networks not for the integration
of all countries economies but for the facilitation of the exploitation of raw
materials to the capitalist center.
 B. Solutions:
 1. Development can only be realized if capitalism is overthrown. Self-reliance
through import substitution, rapid industrialization behind high tariffs.
 B. Thomas. B identified 3 components of self reliance:
 1.partial disengagement- reducing proportion of trade, monetary and technical assistance with
capitalist center
 2. Restructuring relations- deliberate fiscal and monetary policy aimed at altering consumer values.
 3. re-association

5. Lecture 3 theories 5
 Dependency Theory
 Reasons for failures:
 1. Third world industries had no comparative
advantage thereby creating inefficient industries
 2. The strategies were not aimed at export led
growth hence crippled performance of their
economies.
 3. Third world markets are small and products
cannot be absorbed completely by the domestic
market Due to excessive protection the quality of
goods diminished
 2. Because of the need to imports machinery and technology there
was Balance of payment and debt problems

6. Lecture 3 theories 6
 Dependency Theory
 Critique of the theory:
 1.criticised for believing that the problems faced by LDCS are
external rather than internal.
 2. Degree of exploitation cannot be measured
 3. Criticized for circular reasoning
 4.use of single independent variable
 5. Tends to emphasize conflict, revolution and violence
 6. Failed to define development
 Has contributed to the understanding of the mechanism of
poverty and underdevelopment, the complexity and intensity of
interaction between the developed and developing countries,
the impact of internal

7. B. Alliance is not alliance of countries but class in the center
and ruling class in the periphery Bourgeoisie in the periphery
are being bought by those in the center (collaborators within
classes in the center. WHO WILL DE LINK?
B. Its survival is dependent on this, hence it cannot be
nationalistic- at most it is comprador.
C. It does not mean that every ruling class is comprador
others are nationalistic

8. Lecture 3 theories 6
 Dependency Theory
 If ruling is Comparable why do they need to
realign with others .
 BENEFITED:
 - Employment, Infrastructure, Generates economic
spill off to the locals
 - Foreign exchange $90 billion exchange
reserves
 - United Arab Emirates- success has been achieved
by opening up