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.