Webwork 20 Essay

Webwork 20 Essay - What accounts for the difference in...

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What accounts for the difference in wealth between rich and poor countries? This question can be answered in two different ways. One way is to blame the rich, developed country for sucking up the poor, undeveloped countries raw materials, making manufactured products, and selling them at a higher price. However, it is also easy to blame the undeveloped country for not adopting the characteristics of the developed societies. Both of these theories can easily be used to explain the differences in wealth, but which one explains it better. The first theory is called the Dependency theory. It explains that the industrialized, developed countries, Europe and the United State, were buying the raw materials of the pre-industrial, undeveloped countries, Africa, India, China, and Latin America. While this sound good, the industrialized countries were manufacturing goods out of the raw materials and then selling them back to undeveloped countries at a higher price. This led to the dependency on the larger countries, and the experts say that is why the poorer countries are still poor. Smaller countries will spend and spend on the manufactured products, but the profits for their exports totaled less then what they spent on imports. Unfortunately for the undeveloped nations, this stripped them of their resources and took most of their money. Also, it was impossible to pull out of because the Europeans occupied the nation and they needed the manufactured products. This theory is a very probable explanation for the difference between the wealthy and poor
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This note was uploaded on 04/12/2011 for the course HIST 123 taught by Professor Mr.shmit during the Spring '11 term at St. Vincent.

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Webwork 20 Essay - What accounts for the difference in...

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