What are strengths of dependency theory?

What are strengths of dependency theory?

To start with, dependency theory has the following strengths. Firstly, the theory analyses the inequality existing between the poor and the rich countries. Moreover, the theory breaks some political bonds and explains reasons why the wealthy nations are taking advantage of the poor countries (Doukhan, 2003).

What are the weaknesses of the dependency theory?

The main weakness of dependency theory lies in explaining the origin of underdevelopment. In other words, the relation between underdevelopment and dependency is explained in a circular manner.

What is the importance of dependency theory?

In short, dependency theory attempts to explain the present underdeveloped state of many nations in the world by examining the patterns of interactions among nations and by arguing that inequality among nations is an intrinsic part of those interactions.

What is dependency theory?

dependency theory, an approach to understanding economic underdevelopment that emphasizes the putative constraints imposed by the global political and economic order. According to dependency theory, underdevelopment is mainly caused by the peripheral position of affected countries in the world economy.

What is the dependency theory examples?

An Example of Dependency Theory Those loans compounded interest. Although Africa has effectively paid off the initial investments into its land, it still owes billions of dollars in interest. Africa, therefore, has little or no resources to invest in itself, in its own economy or human development.

What are the critiques of dependency theory?

A large argument opposing the Dependency Theory is the subjectivity in the theory and the terms that are often used. Words such as developed and underdeveloped that construct the argument of dependency theory are subjective and different people will view these different terms in different lights.

Why is dependency theory criticized?

Dependency theories have provided an alternative approach to looking at unilinear growth models. Another point of criticism is that the dependency school considers ties with multinational corporations as detrimental, while one view has been that they are important means of transfer of technology.

How dependency theory has affected the developing countries?

Dependency theorists argue that foreign aid and investment slows economic growth, perpetuates a dual economy for the elite and the poor, and increases income differences between the poor and the elite. The impact of foreign aid and other policies must be assessed in reference to specific countries.