Answer to Question 1
The dependency theory states that global poverty can at least partially be
attributed to the fact that the low-income countries have been exploited by
the high-income countries. Dependency theorists see the greed of the
rich countries as a source of increasing impoverishment of the poorer
nations and their people. Dependency theory disputes the notion of the
development approach, and modernization theory specifically, that
economic growth is the key to meeting important human needs in
societies. In contrast, the poorer nations are trapped in a cycle of
structural dependency on the richer nations due to their need for infusions
of foreign capital and external markers for their raw materials, making it
impossible for the poorer nations to pursue their own economic and
human development agendas. Dependency theory has been most often
applied to the newly industrializing countries (NICs) of Latin America.
Dependency theory makes a positive contribution to our understanding of
global poverty by noting that underdevelopment is not necessarily the
cause of inequality. Rather, it points out that exploitation not only of one
country by another, but of countries by transnational corporations, may
limit or retard economic growth and human developments in some
nations.
Answer to Question 2
d
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