Dependency Theory

Dependency theory is an economic theory that came about in response to more mainstream neoclassical models of economic development. It claims that less developed countries, at what it calls "the periphery" are used for cheap labor and natural resources by more developed nations in the "core", who then take those same resources and sell them back as finished products at higher prices to less developed countries. Thus, first world "core" nations are able to keep third world "peripheral" nations in a cycle of continual poverty, where they are unable to develop and can continue to be be exploited. Sugestions for how the periphery should best address there exploitation have ranged from  and subisdizing local businesses to    Wallersteins core-periphery model.png

Friends

 * [[File:Protect.png]] - One proposed solution.
 * [[File:Globnat.png]] - They realize how free trade is harming the periphery.
 * [[File:Mao3word.png]] - Justice for the third world!
 * [[File:Neomarx.png]] - One of my best friends.