I want you to first identify and explain three core assumptions from World Systems

I want you to first identify and explain three core assumptions from World Systems Theory, or Dependency Theory. Please explain in detail.

Expert Answer

The dependency theory postulates that there is a flow of resources and wealth from poor nations which are at periphery toward the core nations, which are already wealthy. This flow of resources makes the rich nations further richer.

Fundamental assumptions of dependency theory are that:-

  • There are present two set of nations, the dominant ones and the peripheral states. The dominant states are the rich states such as members of OECD and the poorer countries constitute the periphery. These are dependent on exports of certain commodities for precious foreign exchange.
  • The advanced countries extend their influence over the dependent nations through foreign aid , multinational corporations and international commodity markets and these external forces play a dominant role in the economy of the peripheral states.
  • The peripheral states are dependent on the dominant states and this dependency has a very deep rooted historical legacy and can be traced back to the way capitalism has evolved in various countries. These dependencies however are dynamic between nations and subject to change.
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