Dependency Theory

• Developed in1950 by Director of Commission of Latin America ,Raul Prebisch The dependency theory states that;-

"the less developed countries (LDCs) are dependent on the developed countries (DCs). This dependence is the main cause for the underdevelopment the former. 

• Dependence is a conditioning situation in which the economies of one group ountrie conditioned by the development and expansion of others. This means that while first; NPs at countries may advance through self-impulsion, dependent economies can only reflect the expansion of the dominant countries which may have positive or neomina effects on their immediate development. (Dos Santos, 1971). 

• According to dependency economists, the whole world is divided between two sets of countries: developed countries (DCs) and less developed countries (LDCs)

• The former is in the centre (Western Europe, Britain and the USA) and the latter are in the periphery (backward countries of Asia, Africa and Latin America. 

• The dependent countries have low per capita GNPs and rely heavily on the export of a single commodity for foreign exchange earnings. 

• Frank many countries in the peripherytraces the process of development in three ways have I been incorporated into the world economy in three ways since the early days of colonialism as capitalist incorporated into the world economy as meta satellites chain as surplus is generated at the center . 

• Both DC and LDC are a result of a world capitalist system. 

• Jhihan has identified dimensions of dependence as;- 
• Historical and International process
• Foreign capital 
• Technology dependence 
• Trade and unequal exchange 
• Dualism 

Strength of the Dependency theory 

• The dependency thinkers have tended to favour industrialisation and to note the positive aspects of capitalism in raising the productive capacities of dependent economies. However, unlike the modernisation theory they are inward looking  terms of the sources of capital so as to avoid the exploitative nature of interna capital in order to build capacity for self-reliance.
• By advocating for the severing or cutting of the 'umbilical cord' i.e. development connects the poor nations to their supposed masters, the dependency theon drawing attention to the significance of planned development or other alter development approach from the so called modernisation with a view to cementing sustenance and thus building capacity for choice in external matters.
• Other dependency theorists advocate mutual cooperation among LDCs in the form of regional economic cooperation and international commodity agreements. Particular, suggests a new development strategy for peripheral countries based of following: 

Self-reliant development strategy based on one's resources, the dependency theory was laying the foundation for poor countries to exploit and benefit from their own natural resources. It also drew attention to the significance of a balanced approach to the development which led to the dispersal  development projects to rural areas and enhanced government drive, to mode agriculture.
• a self-reliant development strategy based on one's own resource: collective self-reliance strategy based on mutual cooperation and economic integrated of LDCs; and "the demand for a New International Economic Order based on transfer of technologies to LDCs, the control of natural resources by LDCs, hi prices for raw materials of LDCs, and access to the markets of DCs for the manufac of LDCs.

 

Weaknesses 

Oversimplification of Underdevelopment:

• Homogenization of LDCs: The theory assumes all developing countries are at the same stage, ignoring diverse levels of development and internal variations within them. Comparing Brazil and Tanzania highlights this flaw.
• Neglect of Internal Factors: Overemphasis on external exploitation overshadows internal issues like corruption, poor governance, and inefficient resource management. 

 Inaccurate View of Capitalism:

• Capitalism as Sole Culprit: It doesn't acknowledge instances where capitalism has contributed to development in some LDCs. Kenya's example is often cited in this regard.
• Overlooking Internal Dynamics: Focus on external forces neglects the agency of individuals and communities within developing countries.

Methodological Limitations:

• Macro Focus: The focus on the global system limits analysis of specific local contexts and internal factors.
• Rigid Assumptions: Assumptions about production roles (raw materials vs. finished goods) don't always hold true in the real world.
• Power Dynamics: The theory may oversimplify the power struggle between nationalist capitalists and compradors.

Policy Implications:

• Limited Practical Guidance: The broad focus on the global system makes it difficult to derive specific, actionable policies at the national level. 

• In essence:Dependency Theory provides a valuable framework for understanding the historical and systemic factors that contribute to underdevelopment. 

• However, its limitations, such as oversimplification, neglect of internal factors, and rigid assumptions, require critical evaluation and a more nuanced approach to analyzing development challenges.