Dependency Theory In Latin America

Dependency Theory is the notion that resources flow from a ‘periphery’ or poor and underdeveloped states or countries to a ‘core’ of wealthy states or countries, enriching the latter at the expense of the former. Popular up through the 1960’s, Dependency Theory became prevalent following the Great Depression as export-oriented, Latin America, fell victim to global pricing. The overall exploitation and expansion of market capitalism, utilizing cheap labor and resources in infantile economies to continue to build strength in developed countries in Europe and the West, Latin America is highlighted and studied as the model for dependency theories up through the 20th century.
Economic structures in Latin America saw overall growth and attention provided to the masses in specific industries. Producing an overwhelming abundance of raw materials, countries throughout Latin America saw the growth and development of monocultures, which provided immediate stability and sparked the attention of larger, more powerful, countries looking to invest in such a specialized industrialized market. Although countries throughout Latin America provided valuable resources to the more developed nations, …show more content…
Finding a niche in a specific market, Latin America economies has the opportunity invest and rebuild the infrastructures which is the back-bone of their country. This outlook provides a more stable, long-term economy, and entices competitive countries who may have varying outlooks on the current hegemon for which is considered the United States. Focusing on those countries who may have a weakening relationship with the United States, the wealth for which Latin American once brought in to such economies may find its way in other developing nations in addition to their