In as much as independency is coupled with decision making and Freedom from control or

influence of another or others, dependency fosters the opposite. This essay will start by defining
the key concept dependency, briefly explain what the dependency theory is, mention the key
features of dependency and the causes of underdevelopment according to dependency.
Furthermore, reasons why it is relevant in explaining Africa’s economic situation in present day
will be discussed and finally a conclusion shall be drawn

Dependency theory represents a critique of modernization theory’s assumptions that poor

countries are poor because of their luck of economic, social and cultural development.
Dependency theory is the notion that resources flow from a "periphery" of poor and
underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the
former. The rich European countries are referred to as the metropolis or Core while the poor
countries are the satellites or periphery. Dependency argues that the poverty experienced by low
income countries is the immediate consequence of their exploitation by wealthy countries.
“Dependency theorists such as frank and Cardoso and Faletto argue that the massive and
persistent poverty in third world countries is caused by is caused by exposure to the economic
and political influences of industrialised countries. They argue that, the luck of industrial
development in the third world is due to its economic resources being drained northwards to the
metropolitan centers”. (Sapru, 1994; 20)

This theory comprise of various versions however, there are some key features of the
dependency theory such as the following: underdevelopment is not an original condition
meaning that it is not causeless but comes about due to some external or internal factors

.
The theory of dependency is very much relevant today in that, African countries are exploited in
terms of unfair international trade with the European countries. They are made to sale their
commodity products at lower prices and in turn buy unsubsidized products. According to Rodney
(1972), from the last years of the nineteenth century, up to the 1960s, Africa was the major
supplier of underpriced raw materials to Europe and buyer of overpriced manufactured goods
from the West. This leads to limitations on self-sustained growth in the periphery as well as
unbalanced economic structure within the peripheral societies. Dependency theorists hold that
short-term spurts of growth notwithstanding, long-term growth in the periphery will be
imbalanced and unequal, and will tend towards high negative current account balances (Tausch,
2003). Various African countries are experiencing this unfairness consequently development is
limited for example in Zambia. Under trade, the country’s economy and therefore its
development have been at the mercy of fluctuating world market prices dominated by the
industrialized countries. Falling world prices have put Zambia's balance of trade into the red
(Bostock & Harvey, 1972).

Capitalism is a social system which is based on the private ownership of means of production
and the free market to allocate resources. The metropolis sets up the capitalist system in a very
unfair way, since the satellites export raw materials, the metropolis make more profit because
their goods are finished products, demand for raw materials increases by 3% while the demand
for finished products increases by 15% hence, Africans perpetually operate at a loss causing low
economic growth and inflation. Western capitalism penetrates and simultaneously under
develops the third world satellites which became dependent countries economically poor and
politically weak. (Sapru, 1994)

The satellite is exploited further due to the metropolis’s tendency of viewing Africa as a
destination for obsolete goods. Mediocre products are flooded on African markets instead of the
high quality products that can improve and develop these countries. African countries continue to
lag behind in terms of high class machinery to modernize their primary commodities or improve
the agriculture sector. Goods that are brought on African markets are either out of demand in the
metropolis or poor qualities that are not long lasting. “The dependency theory has made Africa a
dump for waste and excess labour and a market where the terms of trade work to the advantage
of the developed world. For instance, Africa is positioned to specialize in marketing raw material
while the developed world market finished products. There is no convincing explanation to why
Africa is not manufacturing airplanes considering that the continent has aluminum and copper
which can be alloyed for aircraft construction”. (Matunhu, 2011;69)

International financial capital inflows also explains more on Africa’s dependency, aid from the
metropolis such as International Monetary Fund and The World bank further contribute to
development in the satellites which is not sustainable, (Bauer,2000) argues that “development aid
promotes dependence on others as it creates the impression that emergence from poverty
depends on external donations rather than on people’s own efforts, It appears as though most
African countries are so dependent on aid that without it almost half of their yearly budgetary
commitments cannot be fulfilled”. For example in 1992, aid is said to have accounted for 12.4%
of gross national product (GNP), over 70% of gross domestic savings and investments in Sub-
Saharan Africa and over50% of all imports. In as much as the west continues to provide more
aid, the African continent still remains the same. (Moyo, 2012; 19) agues that, “the notion that
aid can alleviate systemic poverty is a myth. Millions in Africa are poorer today because of aid;
misery and poverty have not ended but increased.

In addition, the metropolis have played an active role in the underdevelopment of Africa today
due to brain drain, African countries have been deprived of educated people to develop the
continent because they are been pulled away to the centers of exploitation more reason why
Africa is behind when it comes to technological advancement. According to Ndulu (2004), since
1994, about 1.6 million South African people in skilled, professional and managerial occupations
have emigrated and the country lost 25% of its graduates to the USA alone and accounts for
9.7% of all international medical graduates practicing in Canada. The relationship is one in
which a metropolis or center exerts pressure upon its satellite or periphery. According to
Galtung, (1980), the South (Africa) has become an external sector of the North (Europe) - a
source of materials, cheap labour and educated people (through brain drain). The pillage of
resources from Africa continues to exacerbate poverty on the continent and rural communities
suffer the most. Notably, Africa deprived (by Europe) of politic and economic decision power,
and lacking sustained investment funds, trod the reverse path, sinking deeper and deeper into
non- development and poverty (Rodney, 1972).
Furthermore, Globalization and technological breakthrough have made migration easier and
safer as well as creating a dependency syndrome on the receiving countries. Globalization is the
process of international integration arising from the interchange of world views, products, ideas
and other aspects of culture. Most African countries have been brain washed into changing their
culture and beliefs to western ways, the satellites endeavor to have their life style as such, there
are largely dependent on their products such as cars, computers, phones and much more. In
addition, migration has caused African countries to increase in population consequently,
numbers compete for few resources. This has led to inequality because Europeans easily travel to
Africa while a lot of sanctions and restrictions are imposed on Africans travelling to the west.
The irony is that while Europeans talk in belligerent terms of 'combating' illegal immigration
from Africa as if Africans are a plague or a threat to security, Europeans can move to and settle
in Africa with relative ease and do not even question this situation of inequality. (Haas, 2012)

Lastly, dependency is to a very high degree relevant in explain how the multinational
corporations have limited economic development in Africa by not only outcompeting local firms
but engaging in fraud rent activities such as transfer pricing in order to avoid paying task in host
countries. The metropolis trade high quality products on African market which are no much for
the satellites for example companies like pick n pay and Shoprite in Zambia trade in almost all
the food products including fruits and vegetables hence, local businesses selling fruits and
vegetables run at a loss as a result, poverty continues to increase as the income per capita falls.

In conclusion, the theory of dependency theory is to a large extent relevant in explaining the
economic situation in Africa, underdevelopment of Africa is indeed as a result of cultural
collision between two different development spheres – the West and Africa, the metropolis
exploits the satellites indirectly through globalization, capitalism, international trade and
 Reference

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Tausch, A. and Peter Herrmann, (2002) Globalization and European Integration. Huntington
New York: Nova Science.

Bauer, p (2000) Foreign Aid and Population Growth: Evidence from Africa. Forum Paper, African
Development and Poverty Reduction,South Africa: The Macro-Micro Linkage

Matanhu, J (2011) African Journal of History and Culture Vol. 3(5), pp. 65-72, retrieved on 24th march,
2015. Available online at http://www.academicjournals.org/AJHC

Ndulu, B.J (2004). Human Capital Flight: Stratification, Globalization, and the Challenges to Tertiary
Education in Africa:JHEA/RESA, 2(1): 57– 91.

Rodney, W (1972). How Europe Underdeveloped Africa. Dar es Salaam: Tanzanian Publishing House.

Sapru, R.K. (1994), development administration, New Delhi; sterling publishers.

Moyo, Dambisa, (2010) Dead Aid. United States of America: Penguin group.

Haas, H (2012) Europeans looking for greener pastures. Retrieved on 26th march, 2015. Available online
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THEORIES OF DEVELOPMENT …http://infochangeindia.org/defining-development/theories-of-

development-modernisation-vs-dependency.htm

multinational corporations thereby enriching themselves and under developing Africa.