In response to this theory, Andre Gunder Frank in 1966 propounded his “dependency theory which saw the world's nations as divided into a core of wealthy nations which dominate the poor nations whose main function in the system is to provide cheap labour and raw materials to the core.
Likewise, people ask, what does the dependency theory explain?
Dependency theory is the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.
Additionally, who gave dependency theory?
Dependency Theory developed in the late 1950s under the guidance of the Director of the United Nations Economic Commission for Latin America, Raul Prebisch.
What does Gunder Frank mean by the development of underdevelopment?
In the work of Andre Gunder Frank, the term development of underdevelopment implies that the present or modern status of underdevelopment is as a result of past social and economic history.
What is the dependency theory examples?
An Example of Dependency Theory Those loans compounded interest. Although Africa has effectively paid off the initial investments into its land, it still owes billions of dollars in interest. Africa, therefore, has little or no resources to invest in itself, in its own economy or human development.