Question

Dependency theory differs from modernization theory by saying that

a. poor nations are responsible for their own poverty
b. capitalism is the best way to produce economic development
c. economic development is not a good idea for poor countries
d. global stratification results from the exploitation of poor countries by rich countries

Answer 1

Dependency theory asserts that rich countries exploit poor countries, leading to global stratification and a dependence that hinders economic growth in peripheral nations.

Step-by-step explanation:

Dependency theory stands in stark contrast to modernization theory, asserting that global stratification arises from the exploitation of impoverished nations by wealthier ones. According to this perspective, the exploitation establishes a recurring cycle of dependence, with peripheral and semi-peripheral countries trapped in economic instability and dependence on core nations for economic advancement and global market access.

Dependency theory further contends that institutions such as the World Bank contribute to perpetuating this inequality. The World Bank's decisions on loan allocations and the promotion of labor markets favoring core nations are seen as reinforcing the economic disparities between nations. In essence, dependency theory highlights the structural inequalities embedded in the global economic system, emphasizing the ongoing repercussions of historical exploitation on the development and stability of nations in the modern era.