Dependency Theory posits that underdeveloped nations enrich advanced nations through an unequal global economic structure where core nations exploit peripheral countries. It originated in response to the failure of modernization theory to explain persistent underdevelopment. Key aspects include a core-periphery relationship where the core dominates through unequal exchange of resources, perpetuating the periphery's external dependency and underdevelopment. While subject to critique, Dependency Theory's emphasis on historical exploitation and structural transformation continues to inform debates on achieving more equitable development.

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WELCOME

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Course Name : International Development
Instructor : Anik Datta
Lecturer
Department of International
Relations
Bangladesh Military Academy

3. TODAY’S TOPIC
 DEPENDENCY THEORY
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4. OBJECTIVES
• To learn about the Dependency theory
• To figure out about the origins of Dependency theory
• Learn about the characteristics of Dependency theory
• Learn about the importance of Dependency theory in
current world.
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5. DEPENDENCY THEORY
Dependency theory is a sociological theory which holds
that economic events in history have encouraged developing
countries to depend upon the support of more advanced
nations. Dependency theory explains that underdeveloped
nations enrich advanced countries with resources at their own
expense.
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6. DEPENDENCY THEORY
Dependency Theory emerged as a prominent critique of
mainstream development theories in the mid-20th century. It
offered an alternative perspective on the global economic
system, highlighting the structural inequalities perpetuated
by the relationship between core and peripheral nations.
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7. First proposed in the late 1950s by the Argentine economist
and statesman Raúl Prebisch, dependency theory gained
prominence in the 1960s and '70s.
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8. ORIGINS
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Dependency Theory originated in the 1950s and 1960s as a
response to the limitations of modernization theory and its
failure to explain persistent underdevelopment in many
countries.

9. Scholars from Latin America, notably Raul Prebisch,
Fernando Cardoso, and Andre Gunder Frank, played
pivotal roles in developing Dependency Theory. These
intellectuals observed that despite efforts at modernization,
many countries remained locked in a cycle of poverty and
underdevelopment.
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10. CHARACTERISTICS
Core-Periphery Structure: Dependency Theory posits a
hierarchical global structure characterized by a core-periphery
relationship. Core nations, typically industrialized and
economically dominant, exploit peripheral nations, often
former colonies or less developed countries.
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12. CORE
• Dominant Capitalist Countries
• Exploit Peripheral Countries for labor and raw
materials
• US, Canada, Most of Western Europe, Japan,
Australia and New Zealand.
• Population: Average , Wealthiest, Best
Educated 12

13. SEMI PERIPHERY
• They share both characteristics of core and periphery
countries.
• Newly industrialized countries.
• They contribute to the manufacturing and exportation of a
variety of goods.
• Above average land mass.
• E.g. Argentina, China, India, Brazil, Mexico, Indonesia and
Iran
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14. PERIPHERY
• Countries who are less developed than the semi periphery
and core countries.
• Dependent on core for capital
• Underdeveloped industry
• E.g. Bangladesh, China, Congo
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15. Unequal Exchange: Dependency theorists emphasize the
unequal exchange of resources between core and peripheral
nations. This exchange, they argue, is skewed in favor of the
core, resulting in a net transfer of wealth from the periphery to
the core.
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17. External Dependency: Peripheral nations become dependent
on the core for capital, technology, and market access. This
dependency perpetuates underdevelopment by limiting the
peripheral countries' ability to develop independently.
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18. Historical Context: Dependency Theory underscores the
historical roots of global inequality, particularly colonialism
and imperialism. The exploitation and extraction of resources
during colonial rule laid the groundwork for the unequal
relations between core and peripheral nations.
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19. Structural Transformation: Dependency theorists advocate
for structural transformation within peripheral nations to
break free from dependency. This involves reducing reliance
on exports of raw materials, promoting domestic industries,
and challenging the dominance of multinational corporations.
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20. KEY IDEAS
• Rejects the modernization theory- problems are imposed on
the Third world not in them.
• Capitalism is based on exploitation and that is not ok.
• The reason these places are poor and under-developed are
because of the structure of exploitation, Capitalism and
world trade.
• Rich countries benefits from under-developed ones, by
means of cheap labor and raw materials 20

21. CRITIQUE
Simplistic Dichotomy: Critics argue that Dependency Theory
oversimplifies the global economic system by reducing it to a
binary division between core and periphery. In reality, the
global economy is more complex, with diverse economic
relationships between nations.
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22. Neglect of Internal Factors: Dependency Theory tends to
overlook internal factors such as governance, institutions, and
cultural dynamics that influence development outcomes within
nations. Focusing solely on external forces may neglect the
importance of domestic policies in promoting development.
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23. Limited Policy Prescriptions: While Dependency Theory
identifies structural inequalities, it offers limited guidance
on practical policy interventions to address these issues.
Critics contend that its focus on external constraints obscures
the potential for autonomous development strategies within
peripheral nations.
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Neglect of Agency: Dependency Theory sometimes neglects
the agency of peripheral nations in shaping their development
trajectories. While acknowledging external constraints, it
may underestimate the potential for domestic actors to pursue
alternative paths to development.

25. • Relevance of Dependency Theory in the
Present World
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26. Globalization and Inequality: In an era of globalization,
Dependency Theory provides insights into the persisting
inequalities between nations. The concentration of wealth and
power in core nations continues to marginalize peripheral
economies, exacerbating global inequality.
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27. Neocolonialism and Exploitation: Dependency theorists
argue that neocolonial structures perpetuate exploitation and
dependency in the global South. The dominance of
multinational corporations and international financial
institutions reflects enduring power imbalances rooted in
colonial history.
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28. Alternative Development Paradigms: Dependency Theory
has inspired alternative development paradigms that prioritize
self-reliance, equitable trade relations, and grassroots
empowerment. These ideas resonate with movements
advocating for economic justice, decolonization, and
sustainable development.
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29. Environmental Degradation: Dependency Theory's
emphasis on extractive industries and environmental
degradation remains pertinent in the context of climate
change. Peripheral nations often bear the brunt of
environmental destruction caused by global economic
activities driven by core nations.
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30. CONCLUSION
In conclusion, Dependency Theory serves as a critical lens
through which to analyze the dynamics of global inequality
and underdevelopment. By recognizing the historical
legacies and structural constraints that shape the global
economic order, policymakers and scholars can work towards
more equitable and sustainable development pathways for all
nations. 30

31. SUMMARY
Dependency Theory offers valuable insights into the structural
inequalities embedded within the global economic system. While subject
to critique, its emphasis on historical context, unequal exchange, and
structural transformation continues to inform debates on development
and global justice. As we navigate the complexities of the modern world,
understanding Dependency Theory enriches our perspective on the
challenges of achieving inclusive and sustainable development.
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32. QUESTIONS
1. Define the theory Dependency?
2. Why is it called the Dependency theory?
3. Is it relevant in current world? Give justification of your
answer.
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33. HOME TASK
• Make notes on the differences between
Modernization theory and Dependency theory?
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THANK YOU