Dependency theory: The word “Dependency” means the state of relying on or being controlled

by someone or something. Therefore, Dependency Theory refers to a critical theory that focuses
on the relationship between developed and developing countries, arguing that the economic
development of the latter is hindered by the economic and political dominance of the former. It
suggests that developing countries are dependent on developed countries for investment, trade,
and technology, which perpetuates unequal power dynamics and hinders their ability to achieve
independent economic growth. Dependency theory also highlights the role of multinational
corporations and international financial institutions in perpetuating this dependency, leading to
underdevelopment and poverty in developing countries.

Dependency theory is a sociological and economic theory that was developed in the 1950s and
1960s by a group of scholars from various Latin American countries. It argues that developing
countries are inherently unequal and dependent on developed countries for economic growth and
development. So for this issue dependency theory has strength and also weaknesses (criticism).
By starting with the strength are reasoned below:-

Provides a critical analysis of economic relations details: Dependency theory offers a

global critical perspective on the unequal power dynamics and exploitation between developing
and developed countries in the global economy. For example, it highlights how developed
countries extract resources from developing nations at low costs, leading to economic
exploitation. Therefore through this leads to the strength of dependency theory.

Emphasizes historical context: The theory takes into account the historical legacy of
colonialism and imperialism in shaping the economic relationships between countries. For
instance, it explains how the legacy of colonialism has left many developing countries with a
lack of infrastructure and resources. Therefore, through this strengthens dependency theory.

Highlights the role of multinational corporations: Dependency theory sheds light on

how multinational corporations exploit resources and labor in developing countries for their own
profits. For example, multinational corporations in the agricultural sector may displace local
farmers and exploit labor in developing countries such as farming food products, minerals and
seaports and harbors. Therefore, through this led to the strength of dependency theory.
 Encourages solidarity among developing nations: The theory promotes the idea of
solidarity among developing countries to challenge the dominance of developed nations. For
example, it encourages collective bargaining in international trade negotiations to secure better
terms for developing countries such as African Union (AU) and East Africa Corporation (EAC).

Offers a framework for understanding underdevelopment: The theory provides a

framework for understanding the persistent underdevelopment and poverty in many developing
countries. For example, it explains how the reliance on developed countries for investment and
technology hinders independent economic growth including harbors and facilities of technology.
Therefore, through this results to the strength of dependency theory.

Raises awareness of unequal trade relationships: The theory brings attention to the
unequal terms of trade that disadvantage developing countries in their economic interactions with
developed nations. For example, developing countries such as Tanzania, often receive lower
prices for their exports compared to the prices they pay for imports such as minerals and
manufactured resources. Through this, strengthened dependency theory.

Addresses the impact of international financial institutions: Dependency theory

acknowledges the influence of organizations like the World Bank and IMF in perpetuating
dependency through loans and structural adjustment programs. For example, these institutions
may impose policies that prioritize debt repayment over social development in developing
countries.Through this strengthened dependency theory.

Advocates for economic sovereignty: Dependency theory advocates for developing

countries to assert their economic sovereignty and pursue independent development strategies.
For example, it supports policies that promote domestic industries and reduce reliance on foreign
investment. Therefore , through this strengthened dependency theory.

Weaknesses;

Ignoring other factors: Dependency theory focuses primarily on the relationship

between developed and developing countries, while ignoring other factors that contribute to
underdevelopment, such as internal governance issues, corruption, and social inequalities within
developing countries themselves.
 Oversimplification of history: Dependency theory often oversimplifies historical
processes by solely attributing underdevelopment to the influence of developed countries on
developing ones, disregarding the complex dynamics of economic, political, and social factors at
play.

Lack of empirical evidence: Some critics argue that dependency theory lacks empirical
evidence to support its claims. The theory is based on general assumptions, rather than concrete
data or specific case studies.

Limited scope: Dependency theory tends to focus exclusively on economic aspects,

neglecting other important dimensions of development, such as culture, education, and
technology.

Lack of practical solutions: Critics argue that dependency theory does not provide
concrete solutions for overcoming underdevelopment. It mostly serves as a critique of the
existing world order, without offering viable alternatives.

Overemphasis on external factors: Dependency theory places excessive emphasis on

the role of external factors, such as multinational corporations or foreign governments, in
perpetuating underdevelopment, which may underestimate the agency and potential of
developing countries to address their own development challenges.

Neglecting positive aspects of globalization: Dependency theory tends to view

globalization solely as a negative force that reinforces asymmetrical power relations, without
acknowledging the potential positive impacts of globalization, such as increased access to
markets, technology transfer, and knowledge exchange.

Lack of inclusivity: Dependency theory often overlooks the diversity and varying
circumstances within developing countries. It does not adequately consider differences in
resource endowments, government policies, or regional dynamics, which can significantly
impact a country's development trajectory.

Inadequate explanation for successful development cases: Dependency theory

struggles to explain cases of successful development, such as the rapid economic growth of
countries like South Korea and Singapore, which were initially considered to be dependent on
foreign aid and investments.

Ignoring internal structures and policies: Dependency theory mainly focuses on

external factors and does not adequately address the internal structures and policies that may
contribute to underdevelopment in developing countries. It downplays the importance of
domestic reforms, good governance, and inclusive institutions in driving development.

Overall, though dependency theory has weaknesses but it offers the significant
contributions to the study of global development, it is important to approach it critically and
complement its insights with other perspective to gain a more comprehensive understanding of
global economic relations and development processes

REFERENCE
Cardoso, F. H., & Faletto, E. (1979). Dependency and development in Latin America. University
of California Press.

Emmanuel, A. (1972). Unequal exchange: A study of the imperialism of trade. Monthly Review
Press.

Dos Santos, T. (1978). The structure of dependence. The American Economic Review, 68(2),
231-236.