Dependency Theory - Basics

Basics

The premises of dependency theory are that:

1. Poor nations provide natural resources, cheap labor, a destination for obsolete technology, and markets for developed nations, without which the latter could not have the standard of living they enjoy.
2. Wealthy nations actively perpetuate a state of dependence by various means. This influence may be multifaceted, involving economics, media control, politics, banking and finance, education, culture, sport, and all aspects of human resource development (including recruitment and training of workers).
3. Wealthy nations actively counter attempts by dependent nations to resist their influences by means of economic sanctions and/or the use of military force.

Dependency theory states that the poverty of the countries in the periphery is not because they are not integrated into the world system, or not 'fully' integrated as is often argued by free market economists, but because of how they are integrated into the system. This introduces a paradoxical effect, in that although both the first and third-world countries are benefitting, the poorer side is being locked into detrimental economic position. They rely on the rich for the little work that is available to them, yet this causes a barrier from the nation growing independently. In a future perspective, such nations have no opportunity to improve their quality of life (Garrett 2007).

It is classified under the sociological theories of mass communication.