Introduction
The dependency approach is an important perspective in International Relations that explains inequality between developed and developing countries. It emerged in the 1960s and 1970s as a critique of modernization theory, which claimed that all societies would eventually develop like the West. Dependency theorists argued instead that underdevelopment in poor countries is not natural but is caused by the global economic system dominated by rich countries. In this answer, we will bring out the key arguments of the dependency approach in simple terms.
Background of the Dependency Approach
The dependency approach originated in Latin America, where scholars like Raul Prebisch, Andre Gunder Frank, and Fernando Henrique Cardoso studied the reasons behind poverty and underdevelopment in the region. They observed that developing countries remained poor despite adopting Western-style policies, and concluded that the structure of the global economy itself was the main cause.
Key Arguments of Dependency Approach
1. Core-Periphery Model
The world economy is divided into the core (developed countries like the USA, Europe, Japan) and the periphery (developing countries in Asia, Africa, and Latin America). Core countries dominate global trade, technology, and finance, while peripheral countries depend on them for markets, investment, and goods.
2. Exploitation of the Periphery
Dependency theorists argue that core countries exploit peripheral countries by keeping them dependent on raw material exports and cheap labor, while the core exports expensive manufactured goods. This creates unequal exchange that benefits the rich countries and keeps the poor countries underdeveloped.
3. Underdevelopment is Created, Not Natural
Unlike modernization theory, which sees underdevelopment as a backward stage, dependency theory argues that underdevelopment is actively produced by the global system. Colonization, unequal trade, and multinational corporations keep peripheral countries weak and dependent.
4. Structural Dependence
Poor countries are structurally dependent on rich countries for capital, technology, and markets. This dependence makes it hard for them to develop independently. For example, many African countries rely heavily on exporting one or two raw materials, making their economies vulnerable.
5. Role of Multinational Corporations (MNCs)
Dependency theory highlights how multinational corporations from the core exploit resources and cheap labor in the periphery. They take profits back to the core, leaving little benefit for the host countries.
6. Limits of Modernization
Dependency theorists argue that simply copying Western models of development will not work for poorer countries, because the global system is structured to favor the rich. For example, free trade often benefits industrialized nations more than developing ones.
Policy Implications
Based on their arguments, dependency theorists suggest that developing countries should:
- Diversify their economies instead of relying on raw material exports.
- Promote self-reliance and regional cooperation.
- Reduce dependence on foreign capital and technology.
- Pursue policies of import-substitution industrialization (ISI), where countries produce goods domestically instead of importing them.
Criticism of Dependency Approach
- Some argue it is too rigid and ignores cases where developing countries like South Korea and Singapore achieved rapid growth through integration into the global economy.
- It underestimates the role of domestic factors such as corruption, governance, and policies in underdevelopment.
- It paints the periphery as powerless, ignoring their agency in shaping development strategies.
Conclusion
The dependency approach highlights the structural inequalities of the global system and explains why underdevelopment persists in many parts of the world. While it has limitations, it remains a valuable perspective for understanding global inequality and the challenges faced by developing countries in achieving independent development.