The dependency theory of development is supposed to be understood in the context of
(A) The world system
(B) The continental system
(C) The regional system
(D) The local system
Correct Ans: (A)
Explanation:
Dependency theory explains global economic inequalities by analyzing relationships within the world system. It argues that wealthy nations, often called the core countries, dominate and exploit poorer nations, known as the periphery. This economic structure prevents developing nations from achieving true independence and self-sustained growth.
The theory emerged as a critique of modernization theory, which suggested that all countries follow the same path to development. Dependency theorists, however, believe that historical exploitation, such as colonialism and unequal trade relations, keeps developing countries dependent on richer nations.
According to this theory, wealthier countries control resources, markets, and technology, forcing weaker nations into a cycle of economic dependence. For example, many developing nations export raw materials at low prices but import manufactured goods at higher prices. This imbalance prevents economic progress and keeps poorer countries reliant on richer ones.
The world system perspective further divides nations into core, semi-periphery, and periphery. Core nations, such as the United States and European countries, hold economic and political power. Semi-periphery nations, like Brazil and India, have moderate influence, while periphery nations remain economically weak.
In contrast to the continental, regional, or local systems, dependency theory focuses on global economic relationships. It argues that true development requires breaking free from international dependence through self-reliance, trade reforms, and economic diversification.
In conclusion, dependency theory views development within the world system, highlighting economic inequalities. It stresses the need for structural changes to ensure fairer global development.
