Dependency theory
Dependency theory is the theoretical description of economic neocolonialism. It proposes that the global economic system comprises wealthy countries at the centre, and poor countries at the periphery. Economic neocolonialism extracts the human and natural resources of a poor country to flow to the economies of the wealthy countries. It claims that the poverty of the peripheral countries is the result of how they are integrated in the global economic system. Dependency theory derives from the Marxist analysis of economic inequalities within the world's system of economies, thus, under-development of the periphery is a direct result of development in the centre. It includes the concept of the late 19th century semi-colony. It contrasts the Marxist perspective of the Theory of Colonial Dependency with capitalist economics. The latter proposes that poverty is a development stage in the poor country's progress towards full integration in the global economic system. Proponents of Dependency Theory, such as Venezuelan historian Federico Brito Figueroa, who investigated the socioeconomic bases of neocolonial dependency, influenced the thinking of the former President of Venezuela, Hugo Chávez.