Dependency is a process associated with the economies of many Third
World countries that is formatted in terms of external factors. Dependency
exists when a country relies on a single (or a limited few) exports that
are sold to more industrialized countries, manufactured and then resold to
the country of origin for a higher price. This means that a country's
income from exports is continually insufficient to meet the cost of
The nature of dependency theory categorizes countries into one of two
types: dominant and dependent. Many formally colonized countries (such as
India) were organized along this type of economic structure. The primary
state was automatically the imperialist overseer and the dependent state
was the colony. Single export economies were also common within the
colonial network (consider coffee from Brazil or sugar from the Caribbean).
Dependent states tend toward a low per capita GNP as direct result of
their dependency. "The dependent states supply cheap minerals,
agricultural commodities, and cheap labor, and also serve as the
repositories of surplus capital, obsolescent technologies, and manufactured
goods. These functions orient the economies of the dependent states toward
the outside: money, goods, and services do flow into dependent states, but
the allocation of these resources are determined by the economic interests
of the dominant states, and not by the economic interests of the dependent
Economic dependency is a result of direct intervention and
manipulation of the economic structure in poorer countries.
Industrialization is limited as a result of outside control and domination.
These are countries that are exploited for the purpose of providing
specific export products and, or, cheap labor to the detriment of the
native population and the benefit of the dominant state. Politically,
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