Dependency theory explains global inequality by examining how poorer and wealthier countries are connected within the world economy. This lesson introduces its central argument and the core–periphery model.
Dependency theory holds that resources and value often flow from a poor, exploited periphery to a wealthy core. Core countries are commonly associated with greater wealth, economic power, and control over production and finance. Peripheral countries are more likely to supply raw materials and low-cost labour and to depend on outside markets, investment, or technology.
All flashcards
What is dependency theory?
An approach to development that explains persistent poverty partly through unequal relationships linking poorer peripheral economies to wealthier core economies.
What is import-substitution industrialisation (ISI)?
A strategy of producing domestically goods that a country previously imported, often with protection for emerging industries.
What is capital accumulation in Baran’s analysis?
Investing economic surplus in new means of production to expand productive capacity.
What is dependent development?
Industrialisation that occurs while important economic decisions remain under outside control.
What is aid dependency?
A situation in which a significant share of a government’s resources comes from foreign donors.
Quiz questions
What does the Prebisch–Singer thesis describe?Answer: A tendency for primary-product exporters’ terms of trade to worsen relative to manufactured-goods exporters.
What is the central policy aim of import-substitution industrialisation?Answer: To build domestic industry by producing goods at home that were previously imported.
In Baran’s account, what promotes capital accumulation?Answer: Investing part of the economic surplus in new means of production.
What position does the semiperiphery occupy in Wallerstein’s world-systems model?Answer: An intermediate position sharing characteristics with both core and periphery.
What is political dependency in the context of foreign aid?Answer: A situation in which donors exert undue influence over a recipient government’s decisions.
Based on the Wikipedia article Dependency theory, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.