Explain the arguments posed by Dependency theorists?

Dependency theorists argue that the global economic system is inherently unequal and exploitative, with developed countries benefiting at the expense of underdeveloped countries. They believe that this inequality is not a result of internal factors within underdeveloped countries, but rather a consequence of the historical and ongoing relationship between developed and underdeveloped nations.

1. Historical Exploitation: Dependency theorists argue that underdeveloped countries have been historically exploited by colonial powers, which extracted resources and wealth from these nations for their own benefit. This exploitation has left underdeveloped countries in a state of dependency, unable to develop their own industries and economies.

2. Unequal Exchange: Dependency theorists argue that the global economic system perpetuates unequal exchange between developed and underdeveloped countries. Underdeveloped countries are forced to export raw materials and agricultural products at low prices, while importing manufactured goods from developed countries at high prices. This unequal exchange further exacerbates the economic disparity between nations.

3. Capital Flight: Dependency theorists argue that multinational corporations and wealthy individuals from developed countries often exploit underdeveloped countries by investing in their economies, but then repatriating profits back to their home countries. This capital flight deprives underdeveloped countries of the resources needed for their own development.

4. Limited Industrialization: Dependency theorists argue that underdeveloped countries are prevented from industrializing and developing their own industries due to the dominance of multinational corporations from developed countries. These corporations control key industries and technologies, making it difficult for underdeveloped countries to compete and develop their own industries.

5. Political and Economic Control: Dependency theorists argue that developed countries exert political and economic control over underdeveloped countries through institutions like the International Monetary Fund (IMF) and World Bank. These institutions impose policies and conditions on underdeveloped countries, such as structural adjustment programs, which often prioritize the interests of developed countries over the needs of underdeveloped nations.

Overall, dependency theorists argue that the global economic system perpetuates and reinforces the dependency of underdeveloped countries on developed nations, leading to economic inequality and hindering their ability to achieve sustainable development.