dependency theory

The dependency theory was a popular theory of development in the 1960s and the 1970s. It condemns the modernization theory which is the idea that disadvantaged countries just need to copy the ways that developed countries work, the reasoning behind this is so the underdeveloped ones can catch up. However, the dependency theory is developed around marxism and targets the format of the word economy as a whole, instead of singular states. Some examples of a typical model that might occur in this theory would be placing high tariffs on imported consumer goods in order to protect their own industries. Another one would be overvaluing their currencies in order to make the import of production inputs cheaper. The last example is subsidizing industries as well as agriculture in the interest of self-sufficiency. 
An example of where the dependency theory has and some might say still does use the dependency theory is africa. Africa was given billions of dollars in loans from wealthier countries starting in the early 1970s and stopping in 2002. The loans given to africa have compounded interest over time. Africa has paid off the money they owe on their land, but still owes billions in interest. This means africa has very few resources to invest in itself, its economy, and human development. This debt leaves africa in a tough position to recover from. The only reasonable way they could recover from such debt is for the countries that gave aid to forgive the interest and erase the debt, but this is unlikely. Despite africa’s troubles, other countries continued to do well despite the dependency theory such as India and Thailand. One of the very few solutions to the dependency theory would be to require global coordination and agreement. 

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