The following text discusses political economy.
Dependency theory, developed largely by Latin American scholars, challenges modernization theory's assumption that underdeveloped countries will progress by following developed nations' path. Dependency theorists argue that global capitalism creates center-periphery relations that systematically disadvantage peripheral nations. Raw material extraction enriches the center while the periphery remains underdeveloped—not from internal failings but from structural position in the world economy. While criticized for determinism and for failing to predict East Asian industrialization, dependency theory influenced development policies and critiques of globalization.
How does dependency theory explain underdevelopment differently from modernization theory?
Underdevelopment results from internal cultural deficiencies
Underdevelopment stems from structural position in global capitalism, not internal factors
All nations develop at exactly the same rate
Underdevelopment does not actually exist
Correct Answer: B
Choice B is the correct answer. Dependency theory argues the periphery "remains underdeveloped—not from internal failings but from structural position in the world economy."
- Evidence: Structural position, not internal failings.
- Reasoning: Global system, not individual nations' characteristics, explains outcomes.
- Conclusion: Structure of world economy causes underdevelopment.
Choice A is incorrect because this is what dependency theory rejects. Choice C is incorrect because unequal development is the central observation. Choice D is incorrect because underdevelopment is explained, not denied.