The main idea of dependency theory is that no nation becomesrich or poor in isolation, because a single global economy shapesthe destiny of all nations. Pointing to continuing poverty in Latin America, Africa, and Asia, dependency theorists claim that develop-ment simply cannot proceed under the constraints now imposed by rich countries. Rather, they call for radical reform of the entireworld economy so that it operates in the interests of the majorityof people.Critics charge that dependency theory wrongly treats wealth as if no one gets richer without someone else getting poorer. Corpora-tions, small business owners, and farmers can and do create new wealth through hard work and imaginative use of new technology. After all, they point out, the entire world’s wealth has increased ten-fold since 1950. Second, dependency theory is wrong in blaming rich nationsfor global poverty because many of the world’s poorest countries(such as Ethiopia) have had little contact with rich nations. On thecontrary, a long history of trade with rich countries has dramaticallyimproved the economies of many nations, including Sri Lanka,Singapore, and Hong Kong (all former British colonies), as well asSouth Korea and Japan. In short, say the critics, most evidenceshows that foreign investment by rich nations encourages economic growth, as modernization theory claims, and not economic decline,as dependency theory holds (Vogel, 1991; Firebaugh, 1992).Third, critics call dependency theory simplistic for pointingthe finger at a single factor—the capitalist market system—as thecause of global inequality (Worsley, 1990). Dependency theory viewspoor societies as passive victims and ignores factors inside thesecountries that contribute to their economic problems. Sociologistshave long recognized the vital role of culture in shaping people’s willingness to embrace or resist change. Under the rule of the ul-tratraditional Muslim Taliban, for example, Afghanistan became economically isolated, and its living standards sank to among thelowest in the world. Is it reasonable to blame capitalist nations forthat country’s stagnation?Nor can rich societies be held responsible for the reckless behavior of foreign leaders whose corruption and militarism impov-erish their countries. Examples include the regimes of Ferdinand Marcos in the Philippines, François Duvalier in Haiti, Manuel Noriega in Panama, Mobutu Sese Seko in Zaire (today’s Democratic Repub-lic of the Congo), Robert Mugabe in Zimbabwe, Saddam Hussein in Iraq, Hosni Mubarak in Egypt, and Muammar el-Qaddafi in Libya.Some leaders even use food supplies as weapons in internal politicalstruggles, leaving the masses starving, as in the African nations ofEthiopia, Sudan, and Somalia. Likewise, many countries throughoutthe world have done little to improve the status of women or controlpopulation growth.Fourth, critics say that dependency theory is wrong to claimthat global trade always makes rich nations richer and poor nationspoorer. For example, in 2014, the United States had a trade deficit of$737 billion, meaning that this nation imports nearly three-quarters of a trillion dollars’ more goods than it sells abroad. The single great-est debt ($343 billion) was owed to China, whose profitable trade has now pushed that country into the ranks of the world’s middle-income nations (U.S. Census Bureau, 2015). Fifth, critics fault dependency theory for offering only vaguesolutions to global poverty. Most dependency theorists urge poornations to end all contact with rich countries, and some call fornationalizing foreign-owned industries. In other words, dependencytheory is really an argument for some type of world socialism. Inlight of the difficulties that socialist societies (even better-off socialistcountries such as Russia) have had in meeting the needs of theirown people, critics ask, should we really expect such a system torescue the entire world from poverty?Check Your Learning State the main ideas of dependencytheory. What are several of its strengths and weaknesses?
The main idea of dependency theory is that no nation becomes
rich or poor in isolation, because a single global economy shapes
the destiny of all nations. Pointing to continuing poverty in Latin
America, Africa, and Asia, dependency theorists claim that develop-
ment simply cannot proceed under the constraints now imposed
by rich countries. Rather, they call for radical reform of the entire
world economy so that it operates in the interests of the majority
of people.
Critics charge that dependency theory wrongly treats wealth as
if no one gets richer without someone else getting poorer. Corpora-
tions, small business owners, and farmers can and do create new
wealth through hard work and imaginative use of new technology.
After all, they point out, the entire world’s wealth has increased ten-
fold since 1950.
Second, dependency theory is wrong in blaming rich nations
for global poverty because many of the world’s poorest countries
(such as Ethiopia) have had little contact with rich nations. On the
contrary, a long history of trade with rich countries has dramatically
improved the economies of many nations, including Sri Lanka,
Singapore, and Hong Kong (all former British colonies), as well as
South Korea and Japan. In short, say the critics, most evidence
shows that foreign investment by rich nations encourages economic
growth, as modernization theory claims, and not economic decline,
as dependency theory holds (Vogel, 1991; Firebaugh, 1992).
Third, critics call dependency theory simplistic for pointing
the finger at a single factor—the capitalist market system—as the
cause of global inequality (Worsley, 1990). Dependency theory views
poor societies as passive victims and ignores factors inside these
countries that contribute to their economic problems. Sociologists
have long recognized the vital role of culture in shaping people’s
willingness to embrace or resist change. Under the rule of the ul-
tratraditional Muslim Taliban, for example, Afghanistan became
economically isolated, and its living standards sank to among the
lowest in the world. Is it reasonable to blame capitalist nations for
that country’s stagnation?
Nor can rich societies be held responsible for the reckless
behavior of foreign leaders whose corruption and militarism impov-
erish their countries. Examples include the regimes of Ferdinand
Marcos in the Philippines, François Duvalier in Haiti, Manuel Noriega
in Panama, Mobutu Sese Seko in Zaire (today’s Democratic Repub-
lic of the Congo), Robert Mugabe in Zimbabwe, Saddam Hussein
in Iraq, Hosni Mubarak in Egypt, and Muammar el-Qaddafi in Libya.
Some leaders even use food supplies as weapons in internal political
struggles, leaving the masses starving, as in the African nations of
Ethiopia, Sudan, and Somalia. Likewise, many countries throughout
the world have done little to improve the status of women or control
population growth.
Fourth, critics say that dependency theory is wrong to claim
that global trade always makes rich nations richer and poor nations
poorer. For example, in 2014, the United States had a trade deficit of
$737 billion, meaning that this nation imports nearly three-quarters
of a trillion dollars’ more goods than it sells abroad. The single great-
est debt ($343 billion) was owed to China, whose profitable trade
has now pushed that country into the ranks of the world’s middle-
income nations (U.S. Census Bureau, 2015).
Fifth, critics fault dependency theory for offering only vague
solutions to global poverty. Most dependency theorists urge poor
nations to end all contact with rich countries, and some call for
nationalizing foreign-owned industries. In other words, dependency
theory is really an argument for some type of world socialism. In
light of the difficulties that socialist societies (even better-off socialist
countries such as Russia) have had in meeting the needs of their
own people, critics ask, should we really expect such a system to
rescue the entire world from poverty?
Check Your Learning State the main ideas of dependency
theory. What are several of its strengths and weaknesses?
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