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.