Make note to justification of the dependency theory what views
justify the dependency theory:
1. Structural analyses: The dependency theory provides a structural analysis of global inequality and underdevelopment. It argues that the global economic system is inherently unequal and exploitative, with wealthy countries benefiting at the expense of poorer countries. This perspective helps to explain the persistent poverty and underdevelopment seen in many developing nations.
2. Historical context: The dependency theory takes into account the historical context of colonialism and imperialism. It argues that the legacy of colonization, including the extraction of resources and the imposition of unequal trade relationships, continues to shape the economic realities of many developing countries. This historical perspective provides a nuanced understanding of the root causes of underdevelopment.
3. Unequal power dynamics: The theory highlights the unequal power dynamics between developed and developing nations. It argues that powerful countries, through multinational corporations and international institutions, exercise control and influence over the economies and policies of developing countries. This unequal power relations contribute to the perpetuation of underdevelopment and hinder efforts to achieve economic independence.
4. Limited development options: The dependency theory argues that developing countries are often limited in their development options due to their status as providers of raw materials and cheap labor. This dependence on primary products and low-value manufacturing prevents these countries from diversifying their economies and moving up the global value chain. The theory suggests that this limited range of options hampers their ability to achieve sustained development.
5. Inequality in international trade: The theory critiques the unequal terms of trade between developed and developing countries. It argues that developing nations are forced to export their raw materials and agricultural products at low prices while importing manufactured goods at higher costs. This unequal exchange exacerbates economic disparities and stunts the growth of developing countries.
6. External debt burden: The dependency theory highlights the issue of external debt faced by many developing countries. It argues that these countries become trapped in a cycle of debt repayments, which leads to limited public investment in areas such as education, healthcare, and infrastructure. This debt burden further hampers development efforts and perpetuates dependency on external sources of finance.
7. Need for structural change: The dependency theory emphasizes the need for structural change in global economic relations. It calls for restructuring the global economic system to ensure fairer trade, debt relief, and greater control over national resources for developing countries. This perspective advocates for a more equitable distribution of power and resources to address the root causes of underdevelopment.
Overall, these justifications support the dependency theory's claim that global inequality and underdevelopment are rooted in structural factors and unequal power relations between developed and developing nations.