Dependency Theory The political and economic relationships between countries and regions of the...

Dependency TheoryThe political and economic relationships between countries and regions of the world control and limit the economic development possibilities of poorer areas.

-- Economic structures make poorer countries dependent on wealthier countries.

-- Little hope for economic prosperity in poorer countries.

Dependency Ratio by Country, 2005

A measure of the number of people under the age of 15 and over the age of 65 that depends on each working-age adult.

A Changing World• Until 1980s there were 3

Blocs– First World-The Capitalist

West-the most advanced states-democratic & capitalist

– Second World-The Communist East of the Soviet Union & its Eastern European Satellites, Red China, N. Korea & Vietnam

– Third World-non aligned states with mixed economies and state control-now an obsolete term

Three Tier StructureCore Processes that incorporate higher levels of

education, higher salaries, and more technology

* Generate more wealth in the world economy

Semi-periphery Places where core and periphery processes are both

occurring. Places that are exploited by the core but then exploit the periphery.

* Serves as a buffer between core and periphery

Periphery Processes that incorporate lower levels of

education, lower salaries, and less technology

* Generate less wealth in the world economy

• Wealth disparity in Malaysia-a women collects her laundry at a simple wooden house in the Kampung Chendana District of Kuala Lumpur-in the background the luxurious Petronas Towers are less than a mile away.