Dependency Theory:

Core Countries

Wealthy nations that exploit raw materials and cheap labor from developing countries.

Periphery Nations

Developing nations that are often exploited by core countries.

Dependency Theory

The idea that developed countries exploit the resources and labor of developing countries, resulting in wealth accumulation in developed nations and poverty in developing ones.

Exploitation

The process by which core nations trade with periphery nations, using their raw materials and labor to create products sold back at higher prices.

Structural Adjustment Programmes

Programs that require periphery nations to alter their economies to favor free trade in exchange for loans from core nations.

Criticism of Dependency Theory

Critics argue the theory is outdated and overly simplistic, failing to consider variations within developing nations and emerging economies like China and India.

Example of Economic Disparity

In 1962, Argentina exported goods worth $106 million while importing $399 million from the US.

Table