Dependency Theory

Dependency theory is a theory popularized in the mid 20th century that criticizes modernization theory. The theory gained popularity around the time that many former colonies of western powers were gaining their independence, and is rooted in marxism. Dependency theory assumes that newly independent and underdeveloped nations (the periphery) are disadvantaged in the global economy, and that richer nations (The centre) will benefit off of that. The centre gained power by exploiting the periphery, and this unequal economic relationship still remains today. The theory is rooted in the idea that the centre and the periphery will ever be able to hold equal influence in the world, and that the periphery will keep being exploited.  The centre can keep them down due to lots of economic interaction with the centre and the periphery being in favor of the centre though it may not look like it. For example, a centre country may provide aid to a periphery country in the form of things such as infrastructure or money. In exchange, the periphery offer the center country access to raw materials that may be in the country, or the centre country will leave them to pay it off later, often with high interest. Either way, this ends the periphery nation being dependent on the centre nations for things such as infrastructure and aid.
An example of dependency theory playing out on a wide scale is what happened to many African nations in the period of decolonization. In the years after European powers released their colonies, many of these nations were in poor shape and lacked many of the basic things that a country needs. Because of this, the countries received billions of dollars in loans from wealthy nations mainly from Europe at the time. These loans compounded interest, and although the initial loan has been paid off many of these countries still owe billions of dollars in interest which they are yet to pay off. This has effectively left many of these countries at the whim of the larger wealthier nations until they are able to pay of their debts, which may not happen for a long time. Because of the new nations needing to get money from wealthier countries, they are now dependent on them, and also billions of dollars in debt.

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