Dependency Theory

The dependency theory is a theory of how developing and developed nations interact. Also, an opposition theory to the popular free market theory of interaction. It was first formulated in the 1950s, drawing on a Marxian analysis of the global economy, and as a direct challenge to the free market economic policies of the post-War era. Another point on this site was, "The Dependency theory also posits that the degree of dependency increases as time goes on. Wealthy countries are able to use their wealth to further influence developing nations into adopting policies that increase the wealth of the wealthy nations, even at their own expense."