The modern global economy is characterized by both great wealth and great poverty.
Certain states have high per capita incomes, developed infrastructures, and the
international influence that comes along with this. Other states suffer through extreme
destitution, economic vulnerability, and a seeming inability to benefit from the global
How does dependency theory explain this divide? According to the theory, why are some
states able to develop economically while others are underdeveloped?
In light of your discussion of dependency theory, what type of policy might lead to
development? What other types of development policies have been used in the attempt to
solve the problem of underdevelopment? Have they been successful?
-Inequalities separate rich and poor states
-Division of power and wealth between states is the Global North (World’s wealthy,
industrialized countries in the northern hemisphere) & Global South (Less developed
countries located in the Southern hemisphere). Possess both moral and security problems
-States in the less developed Global South find themselves downgraded and identities has been
shaped by the secondary position in global hierarchy
-Analysts believe that global inequalities have to do with a much longer historical pattern
-Global south and colonialism (rule of a region by an external sovereign power).Almost all now
independent states in Southern hemisphere were colonies at one time dominated by powerful
-During cold war,Alfred Sauvy coined Third World to describe less developed states and had a
-First world was industrialized democracies in Western Europe, NorthAmerica and Japan
-Second world was Soviet Union and allies
-Communist countries comprising the former Second World have almost vanished, making Third
-Dependency Theory: View of development asserting that the leading capitalist states dominate
and exploit the poorer countries on the periphery of the world economy
-Proposes that the structure of the capitalist world economy is based on a division of labour
between a dominant core and secondary periphery.
-Because of colonialism the Global South countries that make up the periphery have been forced
into an economic role whereby they export raw materials and imported finished goods.
-Dependency theorists maintain that global inequalities cannot be reduced so long as developing
countries continue to specialize in primary products, for which there are often numerous
competing suppliers and limited demand
-Also argue that counties in Global South are vulnerable to cultural penetration by outside forces,
which soak them with values from other societies
-Once cultural penetration occurs, locals who embrace foreign values could gain economically
from the ties they forge with the governments and corporations doing business in their country
-Dualism: existence of two separate economic social sectors operating side by side
-Dual societies have rural, impoverished, neglected sector with an urban, developing or advanced
sector but with little interaction between the two -To explain newly industrialized countries (NCIs) 9which are members of the Global