According to Dependency Theory, how do rich nations contribute to

continued poverty in poor nations? (Draw on the three key factors of

dependency and incorporate concepts and examples from the course content).
Also include one reference to the Corporation as an example or from the
readings/ discussions as an example. What is one strength and one
weakness of this perspective in explaining global poverty? Explain why

- Dependency theory states that rich countries give rise to poverty in poor
countries through exploitation in the sector of economy and unequal
trade relations between them. They often apply various trade policies
that always favor their own interests rather than the poor nations,
leading to the exploitation of resources and cheap labor from them. It
looks same as a big kid playing in the playground and matching against
the small kids with not a single match.

Additionally, rich countries may support corrupt system in developing

countries to maintain their political control and access to resources and they
don’t even focus on the poorer ones so they left behind without coming into
notice. This dependence on external forces creates a hindrance in the ability
of poor countries to develop independently and trapping them in a cycle of
poverty and underdevelopment.

 One of the main factors explained by dependency theory is the concept of

economic dependence, in which poor countries rely heavily on rich
countries for trade, investment, resources and technology. Depending
heavily on them creates a situation in which the economic development
of the poorest countries is hindered by their dependent position in the
global economic hierarchy.

For example, unequal terms of trade imposed by developed countries often lead
to the exploitation of cheap labour and resources in poorer countries. In other
words, we can say they are just using them only for their greedy purpose and
benefits without a single thinking of their help or progress.

 Other factor we focus on the Financial Dominance by the rich countries

over the poorer ones. In simple wording, the rich nations give money to
the underdeveloped nations so that they can grow and can stable in the
economic world but its quite hard for them to achieve this goal because of
 their higher interest rates on the loans. As a result of it, they get trapped
in the lifetime financial cage in which they have to work hard even under
them in order to get rid of the debts. In most of the cases, these poor
nations failed to return the amount and rich always seeks for this situation
and they take benefits from them by forcing them to exporting their
resources and labours in cheap prices which led them to their financial
exploitation . Moreover this debts also reduce the focus of the poor
nations on their different sectors like Health, Education , etc..

 Last but not the least factor is Political Interference which means the
poor countries are exploited by the richer ones even in their political
system by controlling them and interfering in various internal state issue.

As a result of this, the leader of their nation is just acting in the politics but are
controlled by the upper nations. Also, they can use them for various purposes
like military, war etc. They can use them in the war as soldiers and protect their
own nation from their enemy for their own purposes. Moreover, they also take
control over their rights and make their own which is in their favour which
basically exploit the people of the poor nations directly.

The corporation documentary simply highlights the power and influence of

multinational corporations in shaping global economic policies and perpetuating
inequalities between rich and poor nations.

Strength and Weakness of Dependency Theory:

One of the strength of this theory is we can get the analysis which highlights the
inequalities and injustice between these nations. Also , it helps to know is there
any rise of colonialism in these nations which is one of the major historical
issue in this world. We can also get the framework of the exploitation and
development of these nations.

Weakness are poor nations are not treated well as the other nations due to
society thinking and also external forces are also make a lot of hindrance in this
process.