Glossary D

Dependency theory

Dependency theory is the this theory maintains that developing countries are kept in a position of dependency and underdevelopment due to existing economic and institutional power structures sustained by leading Western nations. Dependency theorists argue that the policies and activities of multinational corporations, national bilateral and multinational aid agencies such as the World Bank and the International Monetary Fund (IMF) tend to widen the gap between rich and poor countries and perpetuate the dependency of developing nations.