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 came forth in the 1940’s in opposition to the dependency theory of modernization. It is highly influenced by the Marxist perspective which states that globalization is the basis for market capitalism, cheap labor and advancement of technology in developed nations. Raul Prebisch found that the growth of wealth in developed nations appeared to be at the expense of the underdeveloped nations. According to the modernist paradigm, the periphery countries are at an early stage of development and need to look to the core countries to follow the path of development. On the contrary, dependency theory looks at the historical trends to explain the current state of the underdeveloped countries.
The main message of this theory is the claim that the differences in the level of development of the countries are the result of the prevailing economic relations between the two countries. This theory was developed in the fifties and sixties in response to modernization theory, which argued that all countries follow the same linear path of development. Dependency theory rejected this theory, claiming that the current developing countries are in a new situation of dependence on the developed countries in the world economy, which was not previously in history. Developed countries get rich on trade with developing countries, selling high-value manufactured goods, while the developing countries mainly sell less profitable semi-finished products and raw materials. Dependency theory also criticizes free-market theories, pointing out that developing countries must limit their participation in the global economy to wean themselves from developed countries.
While many theories of poverty exist, few focus on the overarching issues that exist to perpetuate poverty in the United States. Of them all, the Structural Theory of poverty addresses those issues most directly. This theory focuses on the overarching structural factors in society that dictate our lives and every decision. It is impossible to address poverty and combat this ever-pressing, and ever-growing issue without recognizing that society places people in situations that are out of their control. Similarly to the Cultural Theory of Poverty, which explains how belonging to a socio-economic class (specifically being in poverty) for generations produces a new family culture that is distinct from others.
“Theories of development provide a framework for thinking about human growth, development, and learning,” (Cherry, 2015). They outline hindrances to development and provide possible solutions to achieving it. The dependency theory shows that rich countries get wealthier at the expense of underdeveloped countries by explaining how resources are exported from under-developed countries to developed countries who benefit from them more than the developing countries, because they are exported at less expensive costs and later sold back at expensive costs. It was originated by Raul Prebisch and Han Singer. The theory came about as a reaction to the modernization theory that
Some modern critical theorists believe that it is the way we see things that is the cause of our power or powerlessness. The System Theory, the first thing of note is that system theory sees things as wholes. It does not believe that one would understand something better by splitting it up into parts. Modern systems theory is based on the idea that all share the same concepts. (Higgs, 2015) There are different ways of looking at a problem when studying the system theory .
His theory of population is based on the “Iron law of wages”. This theory states that wages should remain at the subsistence level. Wages given to workers are just above the subsistence level i.e. just to fulfil their needs. Workers don’t get to have any significant savings.
For these reasons, dependency theorists contend that the market alone is not an adequate distributive instrument. Since the market rewards efficiency, dependency theorists markdown total measures of economic development, for example, the GDP or exchange files. Dependency theorists do not deny that monetary action happens inside a needy state. They do make a critical qualification, be that as it may, between financial development and monetary improvement. For instance, there is a more prominent worry inside the reliance structure for whether the financial movement is really profiting the country all in all.
INTRODUCTION Lipset’s theory about the correlation between economic development and democratization is probably one of the strongest find in the social sciences (Cheibub & Vreeland 2012). According to him, “the more well-to-do a nation, the greater the chances that it will sustain democracy” (Lipset 1959, p. 75). He formulated two explanations in the correlation of economy and democracy. The first is the endogenous explanation or simply the “modernization theory”. This theory examines how modernization processes, and economic growth in particular, relate to democratization and democratic consolidation (Johannessen 2009).
troduction: The study will be using the Why Nations Fail thesis as its main theory to justify the weak relationship between democracy and economic growth in Sub Saharan Africa, where the gap between the poor and the rich continuous to increase. The maintenance of multi party democracy in Sub Saharan Africa relies on the ability of states to maintain a strong economic and social welfare of their citizens. Also, the Modernization theory and the World system theory will be also be used to analysis certain inequalities between the West and Developing Countries. The chapter will also introduce the research methodology that the researcher will be using to analyze the basis of the research. 3.2: Theories 3.2.1: Why Nation Fail Theory In “Why Nations