Dependency Theory

Dependency Theory

1. satellite countries - poor due to being in European economic system as producers of raw materials or cheap labour (no opportunity to market goods)

2. FOR

   • Doesn't assume poverty is fault of country
     • Underdevelopment is not natural - does not blame corrupt governments but instead blames its origin - colonialism
   • Shows how nations are interrelated

3. Early Colonialisation (Mercantile capitalism – trading goods – products sent back to metropolis)

   • Settled Colonialistion (ex proportion of indigenous industry, infrastructure to ports improved, new markets exploited)
     • Post Colonialisation (Terms of trade favour MEDCs), Foreign Direct Investment is linked to profits which leak back to MEDCs, aid is a continual exploitation.

4. AGAINST

   • Some countries haven't been colonised and are still poor (Ethiopia) - GOLDTHORPE
   • Provides no solution - just a reaction to Modernisation and no an alternative philosophy
   • Goldthorpe - Colonialism has benefits - provides basic infrastructure (transport) - Ethiopia lacks infrastructure provided by colonialism power
   • Robert + Hite - Frank fails to explain why there appears to be greater levels of exploitation over time or significant differences between poorer countries

5. Impact of colonialism

   • Existing industries collapse - no indigenous economic base for growth - reliant on metropolis
   • Western norms and values - shift from sufficient to mass consumption
   • Indigenous knowledge systems undermined - reliance on metropolis for institutions such as education and health - may not be appropriate in context of satellite nation
   • Political system reshaped