DEPEDENCY THEORY
Depedency
theory is a school of though that developed by Raul
Prebisch. Wallenstein in late
1960s. Depedency theory is focusing on the deviding classes of the economic
system in the world. Depedency theory is a theory that born from the thought of
Structuralism. On depedency theory, they believed that the countries in our
world is devided into 2 classes. The first one is Core and peripheral country
which both of them are dependent of each other.
Core
country is a country that doesn’t have a resources such as natural or human
sources but they have capital, and also technologies. Core country is the main
of the system. It works the system and also it pays for the system. For
example. United states put the modal in India for producting the spicies. Core
country is like that. They paid and put the modals to the peripheral country
and got the advantages from it. The countries that included on core are such as
United State and China.
Pheripheral
country is the resources country. The country which provided all the resources
that the core country needs. They don’t have the capital, modals and also
technologies. That’s why they need core country for them to sell it.
On our
class discussion, I asked our lecturer, Is a pheriperal country could move to
the country? And the answer is yes. There is a country that could become a
country country, for example China. Country
could move to the core, depend on how could they develop the country on the
economic sectors, how the increasing of the modals, and a lot how could they
invented the technologies.
By seeing
this, the conclusion is that depedency theory is focusing on the dependency of
all of the countries. The core and the peripheral could contribute to each
other so it makes the stabilization and also the balance of the economy.
Stabilization and depedency of countries is the key of the depedency theory.
Thanks,
Stanislaus Ivan Gunawan.
Stanislaus Ivan Gunawan.
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