Dependency theory (1960s–Present) is the idea that developed countries obtain their wealth at the expense of developing countries and, as a result, make developing countries unnaturally poor. Dependency theorists underline how export-based economies limit development. They explain that developing countries export raw goods to developed countries and then must purchase it back after manufacturing at a higher price, leading to dependence and impeded growth.
While it is applicable to many former colonies, Latin America is a common focus. Open Veins of Latin America by Eduardo Galeano is a renowned example of dependency theory literature. Galeano challenges the idea that a lack of resources or innovation is the reason behind Latin America’s limited development. Rather, the cause is a history of slavery, imperialism, and exploitation. For example, he argues that the 18th century silver trade, and the slavery it accompanied, led to contemporary working conditions and ecological devastation of Latin America. Critics question the continued relevance of dependency theory due to the successful modernization of former colonies, such as India.
FURTHER READING
Galeano, & Belfrage, C. (1997). Open Veins of Latin America: Five Centuries of the Pillage of a Continent (25th anniversary ed.). Monthly Review Press.
Bernecker, Walther L., and Thomas Fischer. “Rise and Decline of Latin American Dependency Theories.” Itinerario 22, no. 4 (1998): 25–43. doi:10.1017/S0165115300023494.
Glennie, Jonathan. “Dependency Theory – Is It All over Now?” The Guardian, March 2012. https://www.theguardian.com/global-development/poverty-matters/2012/mar/01/do-not-drop-dependency-theory.