The economy of a country determines that how powerful the country’s structure is. Due to world-web-globalization, the developing and emerging countries have dragged to backwardness, hunger, poverty, and economic dependence. The developed countries have become more powerful and economically stable. All of the countries are focusing on becoming technologically more advanced. Almost all of the countries existing in the southern part, actually need transferring of technology, provision of resources, clean trading policy and also economic support from other capable countries.
In the world economy, weaker and less developed countries are economically dependent on stronger countries. It makes the stronger countries more powerful, and in turn, these countries start to make access to emerging countries. This approach affects the growth of developing countries and restricts them from improvisation and individual growth. Due to which dependent countries face under-development. The economic dependency is more for the southern countries than northern ones because northern countries are more capable in many perspectives. To go deeper in this study, let’s discuss indices that contribute to economic dependence.
Indices of Economic Dependence
Technology & Innovation
Science and technology are considered to be two very significant factors to cause economic dependence. The country that is more capable technologically is judged by the global challenges and issues it can withstand. Such technologies and fresh innovations are introduced mostly by the countries existing in the north part of the world.
Trade & Clientele
When a country grows economically, it means it’s accumulating a great amount of capital as well as profit out of trading. The north part of the world is very powerful regarding telecommunications’ services, automobiles, machinery and other consumer essentials. That’s why the south-region is dependent on the north to supply or avail these things.
Free Business Aesthetics
The ideology of free trading gives a boost to competition among national as well as international businesses. This competition supports developing countries in no way. It enables developed countries with more resources and emerging ones only weaken.
Foreign Direct Investment (FDI)
The emerging countries’ intention to attract foreign countries to invest in their domestic markets, is the base of foreign direct investment. FDI boosts up the flow of capital globally and also financially connect various countries via investments.
Economic Dependence Postulates
Let’s bring our attention to the factors that dependent and powerful countries avail, from economic dependence. It would be suitable to call these “Economic Dependence Postulates.”
- The countries that are not as powerful as others get to use differentiated services and products coming from developed countries. Due to which, emerging countries can get benefited with inexpensive labor, natural resources, and technological advancements.
- By one way or other, the capable countries assist other needy countries to come a step up towards development and better economic standards.