Examples Of Dependency Theory

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Within the global economic order, theories and concepts are not always enough to change prevailing ideas or actions of greater states. However, there are examples of instances which the theory and action which resulted from that concept, were enough to change global economic governance. One such example is the changes to the intellectual property right legislation, which has drastically impacted the developing worlds access to medicine. However, on the other hand, dependency theory and its effect on the new global world order, stands in stark contrast. This research shall examine the concept of dependency theory, the impact or lack of impact it had on the idea of the new economic world order, the change to intellectual property rights and the…show more content…
Dependency theory is based around the occurrence of wealthier states benefitting economically from poorer states. Dependency theory argues against the notion that non-developed nations are created and evolve in the same way as developed nations, when in reality, they all have a different history, culture and way of growing. It brings forth the notion that there is a common course for development, and that the developing nations will just follow this path. Dependency theory highlights how economic development, although it might involve develop and non-developed nations, does not mean that economic prosperity is inevitable. Dependency theory highlights that poorer nations are able to be taken advantage of, for they have the natural resources, and large populations which are used for cheap labor, but lack the ability to establish systems that benefit economic prosperity. Dependency theory is based around this system, and reinforces the idea that wealthier nations are able to take advantage of…show more content…
An example of this is the changing to legislation of intellectual property rights, altered the accessibility of medicines to the developing nations which were previously restricted, and lacking proper accessibility to treatment. The acronym TRIPS plays a vital role in understanding the success of this concept, it stands for World Trade Organisation’s Trade Related Aspects of Intellectual Property Rights. Administered by the World Trade Organsiation, it makes sure that a nation reflects the intellectual property rights within their domestic laws. Before TRIPS was enforced, most developed nations enforced intellectual property rights, yet many developing nations did not. Whilst this meant that that medicine prices were lower, for blah blah states “Increased competition is proven to result in lower prices, which in turn contribute to improved access to medicines”, it was the Developed Nations which benefited from the profit gained from using the resources of the developing nations. Prohibitive drug prices are often the result of strong intellectual property protection. It is therefore unsurprising that places like the United Nations, Japan, China and a few in Western Europe, have fought for stronger control and higher levels of property rights laws. These nations argue for strong global protection, as they have
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