Theoretical Understanding/Literature Review Dependency Theory

Abstract

Critical development theories have increasingly been ignored in the international political economy over the last three decades. The purpose of this chapter is to explore the historical beginning of dependency theory, the world system theory and their core arguments that challenge neoliberal economic structure and core assumption of modernisation theories of development. By reviewing dependency theory and its variant ‘world system theory’, this chapter attempts to find out whether dependency theory can be regarded as an alternative in explaining the growing economic relationship between China and Africa. Dependency theory discusses both internal and external determinant of development and sheds a unique light on the realities of the South–South trade cooperation and in this context China–Africa relations. I discuss the inherence of dependency and argue that the theory provides a useful framework for research in the current context of China–Africa economic engagement. I argue that China in Africa is a potential replacement to the continent’s traditional trading partners and this may turn to be a shift for Africa from old dependency to a new one.