ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Dependency theory focused on individual nations, their role as suppliers of raw materials, cheap labor, and markets for expensive manufactured goods from industrialized countries. The unequal exchange relationship between developed and developing countries was viewed as contributing to poor economic growth.

Detailed explanation-2: -According to dependency theory, underdevelopment is mainly caused by the peripheral position of affected countries in the world economy. Typically, underdeveloped countries offer cheap labour and raw materials on the world market.

Detailed explanation-3: -The Marxist theory of dependency analyzed dependency as part of a monopolist, dynamic, and competitive world capitalist economy that transcended national states, creating relations of complementarity, subordination, commitment, and/or conflict among its various hegemonic internal bourgeoisies.

Detailed explanation-4: -Theotonio Dos Santos, one of the founders of dependency theory, describes dependence as “a situation in which the economy of certain countries is conditioned by the development and expansion of another economy to which the former is subjected” (Dos Santos 1970, p. 231).