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Dependency Theory

"Core" being the developed countries

"Periphery" being the developing countries

Interdependence Theory

Dependency Theory

Central Propositions

Robert Keohane

and

Joseph Nye

states and their fortunes are inextricably tied together

Transnational connections and interdependencies between states and societies were increasing, while the use of military force and power balancing are decreasing but remain important.

1. The use of multiple channels of action between societies in interstate, transgovernmental, and transnational relations

2. The absence of a hierarchy of issues with changing agendas and linkages between issues prioritized

3. The objective of bringing about a decline in the use of military force and coercive power in international relations

Inward looking approach to development

7. The worldwide system of relationships is duplicated within individual Third World countries.

6. So long as capitalism remains the dominant world economic system, there is no reason for the situation of developed and underdeveloped countries to change.

5. The underdevelopment of weak Third World countries is directly related to, and makes possible, the "development" of the powerful countries of the industrialized core.

4. Underdevelopment is not a natural state, but rather a condition that is caused.

2. There is a tremendous amount of interaction among core countries and peoples, and between the core and the periphery.

1. Third World countries do not exist in isolation.

3. Politics and economics are related.

Corruption is high in socialist/communist economies.

Lack of competition

Major criticisms on Dependency Theory

Sustainability

Domestic opportunity costs.

More examples:

India

North Korea & South Korea

Zimbabwe

The dominant view of dependency theorists is that there is a dominant world capitalist system that relies on a division of labor between the rich 'core' countries and poor 'peripheral' countries.

developed in the 1950s

Raul Prebisch

Their studies suggested that economic activity in the richer countries often led to serious economic problems in the poorer countries.

Third World dependency thinkers were concerned with explaining the unequal and unjust situations in which they and their nations found themselves.

Director of the United Nations Economic Commission for Latin America

This approach originated in the Third World (primarily Latin America), rather than among Western

academics.

Prebisch and his colleagues were troubled by the fact that economic growth in the advanced industrialized countries did not necessarily lead to growth in the poorer countries.

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