World War II ended in 1945 after Japan and Germany surrendered to the Allies and U.S.S.R. The imperial countries offered available options for their colonies, whether those nations required to remain as colonies or exited from their regimes. Thus, dependence countries were becoming decolonized from the mother countries. These issues influenced developed countries to step-in and subsidized those underdeveloped countries which decolonized from the imperial countries. Before and during “the Cold War” between the Capitalist and the Communist, some theorists from the developed …show more content…
The reconstructions in the European countries were subsidized by the external assistant rather than their internal improvement (Richard, 2015) which called “Dependency Theory”. Reyes (as cited in Shareia, B. F, 2015) stated that Dependency theory was designed to respond the modernization theory. This theory focuses on the development of the third world which refers to the underdevelopment countries. The definition of Dependency is the oppositional ideas of the classical system that constructs the shape of the world economy, which the country has accepted the harm of other countries in exchange for overseas assistance. The explicit explanation of this is the poor nations’ reliance on the wealth of the core countries. Thus, Sunkel (as cited in Vincent Ferraro, 2008) stated that the core countries or developed countries involved through political, economic and cultural that influenced the growth of economies in the peripheries. This means the peripheries exported cheap natural resources, goods and human resources to the core countries, in return the underdeveloped nations imported expensive equipment, tools and latest technologies from the modern countries (Vincent Ferraro, 2008). In order to achieve the dependency theory, Furtado (as cited in Mckay, 2016) believed that the peripheries need to …show more content…
He cited that the growth of wealth in the core states was not accelerated the development in the non-industrialized nations. Raul believed that the backwash in the third world triggered by the activities in the north. The failure of the development in South America forced the essence of the theory of dependency (Mckay, 2016). Inequalities between the core and the peripheries are considered as additional force that inspired dependency theory. As cited by Ferraro (Vincent Ferraro, 2008), this means the benefit of the rich countries outweigh the poor nations. The underdeveloped nations received income from the exports, however, they could not afford the imports from the core countries. The reason is hidden in this issue that the developed countries can control the market. Thus, this perspective leads dependency theory to valued “Equality”. Amin (as cited in Mckay, 2016) stated that the cores and peripheries are imbalanced or unequal because most technologies were imported, to the underdeveloped countries, with higher prices which contradicted with the price that exported to the rich countries. Due to this disparity of both nations, Raul Prebisch (as cited in Vincent Ferraro, 2008) stated that the economic and trade policy must be reformed hence the underdeveloped countries could possibly shrink the