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Dependency theory comes from a body of social science theories. It uses the notion that resources flow from the developing countries to the industrialized countries. Also, under this theory it adds that this dependency enriches the developed nations leaving the developing countries poorer and poorer. This theory dates back to around 1970 as a reaction to modernization theory and from earlier development theories, which held that, all societies advance through similar stages of development. This means that once in theory stages all developed countries were once poor. Thus, the modernization theory advocated that underdeveloped countries will become rich. The dependency theory does not agree with arguing that developing countries are not just primitive but have a unique feature and stricture on their own (Frank 399-400).
Dependency theory holds that poor nations provide natural resources cheap labor, are places for disposing obsolete technology, and are sources of the market to developed nations. In addition, wealthy nations influence the economy, controls the media, political situation of the word, banking and finance sector and the entire education of the world. Developing nations are subject to sanction of their resist policies of industrialized nations.
Examples of developed countries are majorly based in Europe and America; they include: Germany, France, the United Kingdom, the United States of America, and Canada. Developing countries are majorly located in Africa, Asia and Latin America.
Developing countries have no option quitting their correlation with the industrialized countries. This is because, in most developing countries, they engage in agricultural activities that need market for their products. If they stop working together with these nations they will not be able to get market. Without markets, developing countries will continue suffering. Developed nations account for major percentage of source of market for developed countries, for example, importing tea, coffee, and cotton. This export helps boost the economy of developing countries. From this, we see that developing countries have to cooperate with developed nations. Thus, they have no option of isolating themselves from the rest of developed countries in the world (Cardoso and Enzo 28).
Developing countries would not isolate themselves, because they depend on industrialized countries in funding their economic policies. In most cases, developing countries seek donations and aid from developed countries. This sometimes may be in terms of a loan which may be short term or long term. This forces developing countries to act together with developed countries (David 21).
In addition, developing countries have problems with innovations and technology. The technology which comes to these developing countries is from developed countries. Thus, developed countries highly depend on developed countries technologically.. This includes innovation in the mobile phone sector, internet sources, machines to be used in manufacturing companies, and motor vehicle.
Industrialized countries benefit more than developing countries in accordance to the dependency theory through the dependency, developed countries have become richer and richer. This is because of many benefits, which accrue to developing countries. Other reason may be due to developed countries that have influence over the world economy and control all economic activities which take place in the world (Frank 400-402).
For instance, in the Latin America, exploitation of these countries by developed countries happened. The exploitation is dated back in the 18th century; the reason behind this exploitation was to get natural resources from these countries which include silver and gold from Mexico. Also, developed countries exploited Brazil agricultural products, which include sugar and coffee.
Developed countries also benefit from the use of labor from developing countries. In the past use laborers in developed countries were from undeveloped countries. These developed countries benefited more due to using them as a source of cheap labor thus saving in the production cost if they were to hire their own. For examples, immigrants from Mexico to the United States contributed to increase the level of the U.S. productivity. The benefit was due to a high number of immigrants lowering the salaries due to their high number (Frank 425-430).
Another reason why developed countries benefit more than developing countries is that they get ready market in developing countries, which provide a ready market to the developed nations. Industrialized countries find markets for their products in the markets of developing countries. Most of imports in developing countries come from developed nations. For example, all motor vehicles, which are sold in Africa all are imports thus, Africa offers a ready market for the motor industries in developed nations.
There are more advantages to developed countries, because developing countries have less manufacturing industries of electronics. For instance, currently in the world China biggest market for their electronic products is Africa. Thus, this leads to developing countries benefiting more and more than the developing nations (Wallerstein 86).
In addition, developing countries gets more of their capital from developing countries. When they need resources they come and exploit what developing countries have and take them away leaving the later to suffer. This is due to inadequate facilities to exploit these resources by developing countries. An excellent example is that most of the mining industries in developing countries are owned by developed nations. They take on the advantage that developing countries have no means of exploiting these resources.
Developing countries have no waste out of the products, because they view developing countries as a place to dump what they no longer use. For example, with changing technology developed nations dispose to developing countries those products that are not in use or no longer fit them. This is mostly in association with a cost thus helping developed countries not to go a loss or waste their resources.
Developed countries have a superior advantage to the developing nations because they are the ones who are controlling everything. Being a developed country means that one has the power to exercise most of the things. Developed countries control most of the world economics thus authorizing policies to developing countries which they must adhere to, without any consequences.
Underdeveloped countries are not by facts they are underdeveloped and will remain like that forever. Developing countries cannot become developed because of interference by developed countries. In real a situation, developed countries will remain so the developing countries remain underdeveloped. This interference is because the developed countries keep depending on the developing countries thus, making it a routine thus, no progress made in the developing country (David 101).
Though, after looking at this there are also some relations, which shows that dependency is vital between countries as it benefits both countries in the world. Developed and developing countries assist each other in mutual way without exploiting each other. Under the comparative advantage theory, it states that each country or nation produces what the other country cannot be able to produce. Not all countries have all products therefore they need to seek assistance from each other. For instance, an Africa country like Kenya is best for tea production and a country like Japan for assembly motor vehicles. Thus, two countries need each other for continuous development.
Some people may view from the perspective mutual benefit of dependency among countries. This will be in terms of with dependency a country gets what it needs so that it can be able to survive and meet the needs of its citizens. Some do not view industrialized countries as selfish for their own interest, but they view them as equal partners according to the dependency theory. At some point in the economy, the developed nations were undeveloped and this is a reason why they believe in stages. This is that a country must undergo stages from being underdeveloped to a developed country. For instance, a country like China went through this process from underdeveloped to a developed nation now.
It is evident that developed countries do not care whether there is a mutual benefit between them and developing countries. All that matters to them are that they get what they need from these nations. Developing countries are competing with other for supremacy in the economy thus they all want to gain but not necessary assisting the developing nations.
Also, we can see that dependency among developed and developing countries is not fair. Developed countries are ganging more and becoming richer and richer while developing countries have become poorer and poorer. Developing countries cannot be isolated from the dependency relationship, because they are not able to stand on their own; this left without any option.