Dependency theories, rooted in Marxist thought, emerged in Latin America and France. Date: 18/07/2025 | Views: 353

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Dependency theory, rooted in Marxist thought, is drawing increasing attention in academic and political circles, particularly across the Global South. Originally emerging in Latin America and France, the theory gained momentum in the 1970s, especially among intellectuals and thinkers in developing nations seeking to understand the unequal economic relationships between the Global North and South.

The theory examines the persistent political, institutional, and economic stagnation experienced by developing countries, arguing that they remain subject to hegemonic relations with major capitalist powers, placing them in a state of "structural dependency."

Brazilian scholar Theotonio dos Santos is considered one of the most prominent theorists of this school. He defined dependency as "a situation in which the economy of certain countries is conditioned by the development and expansion of another," allowing dominant nations to grow autonomously while dependent nations can only develop to the extent that it serves the interests of the dominant economies.

Dos Santos categorized dependency into three main forms:

Colonial Dependency: Where foreign capital dominates key sectors of colonial economies through trade monopolies.

Financial/Industrial Dependency: Characterized by foreign control over the production of primary and agricultural goods in dependent countries.

Technological/Industrial Dependency: Arising from multinational corporations establishing industries aimed at meeting local market demands within developing countries, often under the import-substitution strategy.

Notable contributors to this school of thought include André Gunder Frank, Paul Baran, Samir Amin, Immanuel Wallerstein, and Raúl Prebisch. Prebisch, in particular, introduced the "center-periphery" model in a 1950 article published by the UN Economic Commission for Latin America and the Caribbean. His analysis highlighted the structural imbalance in international development, where the relationship between industrialized nations (the center) and developing countries (the periphery) tends to benefit the former.

Dependency theory attributes the persistent developmental gap between the North and South to several key factors: reliance on foreign capital, exportation of economic surplus to core nations, dependence on imported technology, deteriorating terms of trade, and enduring colonial-era social and cultural legacies that hinder economic independence and self-reliance.

Despite facing various critiques over the decades, dependency theory remains a vital analytical framework for understanding the global economic system and the power dynamics that continue to shape it.

Dr. Thamer Ramadan – College of Law, Al-Mustaqbal University
Al-Mustaqbal University: The Top University Among Public and Private Institutions in Iraq