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What are the predictions of dependency theory?
The predictions of dependency theory:
• DCs exploit LDCs (Less Developed Countries) by extracting their surplus value. Surplus value turns into the difference among the values of what an LDC produces and what that is paid to produce which by a DC.
• To prevent exploitation, underdeveloped countries should gain political, social and economic independence through the developed countries through cutting of economic ties in between trade and investment along with the developed world and becoming self sufficient as like adopt an import-substitution strategy (ISS)
• Dominant Developed Countries are so powerful which they can make sure the rules of the game - when set out by WTO, World Bank and IMF which work into their own self-interest.
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