Introduction
Theorist from all works of life have been for as long as history dates back, trying to find a cure or remedy in addressing the problem that third world countries face. Despite their efforts, these countries (third world) are characterised or classified as countries that are under poverty, poor or no medical facilities, poor road networks of which they seem to be experiencing more underdevelopment than any form of development. On the other hand developed nations seem to be greatly benefiting from the continuous lack of development in these nations. Developing nation
The word developing countries or nations in this case refers to those countries that are less technologically advanced those are for example, Asia, Africa and Latin …show more content…
According to Benstien (1973), dependency is a conditioning situation in which the economies of one group of countries are conditioned by the development and expansions of others.
Origin of Dependency Theory
The Dependency Theory is a body within social science theories, which is made up of the notion that raw materials (recourse) flows from the borderline of more poorer and undeveloped nations to the centre of much wealthier and more developed countries, enriching them in the expense of the former (rich become richer).
The dependency theory was first developed in the late 1950’s under the guidance of the Director of the United Nations Economic Commission for Latin America, Rual Prebisch. He was troubled by the fact that economic growth in more advanced and industrialized countries did not also lead to the growth of much poorer countries. Instead it has been shown that the economic growth of much richer countries has often if not always le to serious economic issues for poor countries. This kind of situation was not predicted be the Neo-classical Theory which believed that “economic growth was beneficial to all even if the benefits were not always equally …show more content…
The President of Lybia Muamar Gadafi stated that African countries need to cut off the Western World in order to gain economic liberation by forming the United States of Africa. If this kind of move happens it will mean that countries like Zambia, Tanzania and many more will have to work harder and develop a very strong base for their local investments, so that the country can be able to produce majority of their basic good inside the country. In order to maintain this, certain sectors with in the country like for example agriculture and mining need to be subsidized by the government. And there will also be a need to make sure that the local industries are well protected from unfair competition of imported goods from developed countries that are already subsidized.
Understanding the Dependency Theory
It is important that we understand from the very beginning that as much as the dependency theory provides us with what may be seen as a way for developing countries to develop, the complete implementation of it can lead a country into complete economic, social and political crisis. Take for example Zimbabwe, by trying to get complete independence and cutting themselves off from the international
Theorist from all works of life have been for as long as history dates back, trying to find a cure or remedy in addressing the problem that third world countries face. Despite their efforts, these countries (third world) are characterised or classified as countries that are under poverty, poor or no medical facilities, poor road networks of which they seem to be experiencing more underdevelopment than any form of development. On the other hand developed nations seem to be greatly benefiting from the continuous lack of development in these nations. Developing nation
The word developing countries or nations in this case refers to those countries that are less technologically advanced those are for example, Asia, Africa and Latin …show more content…
According to Benstien (1973), dependency is a conditioning situation in which the economies of one group of countries are conditioned by the development and expansions of others.
Origin of Dependency Theory
The Dependency Theory is a body within social science theories, which is made up of the notion that raw materials (recourse) flows from the borderline of more poorer and undeveloped nations to the centre of much wealthier and more developed countries, enriching them in the expense of the former (rich become richer).
The dependency theory was first developed in the late 1950’s under the guidance of the Director of the United Nations Economic Commission for Latin America, Rual Prebisch. He was troubled by the fact that economic growth in more advanced and industrialized countries did not also lead to the growth of much poorer countries. Instead it has been shown that the economic growth of much richer countries has often if not always le to serious economic issues for poor countries. This kind of situation was not predicted be the Neo-classical Theory which believed that “economic growth was beneficial to all even if the benefits were not always equally …show more content…
The President of Lybia Muamar Gadafi stated that African countries need to cut off the Western World in order to gain economic liberation by forming the United States of Africa. If this kind of move happens it will mean that countries like Zambia, Tanzania and many more will have to work harder and develop a very strong base for their local investments, so that the country can be able to produce majority of their basic good inside the country. In order to maintain this, certain sectors with in the country like for example agriculture and mining need to be subsidized by the government. And there will also be a need to make sure that the local industries are well protected from unfair competition of imported goods from developed countries that are already subsidized.
Understanding the Dependency Theory
It is important that we understand from the very beginning that as much as the dependency theory provides us with what may be seen as a way for developing countries to develop, the complete implementation of it can lead a country into complete economic, social and political crisis. Take for example Zimbabwe, by trying to get complete independence and cutting themselves off from the international