On Dependency Theory: Still Relevant?

Dependency theory fell out of fashion in the 1980s–90s as neoliberal globalization became the dominant paradigm. But several developments have renewed interest:

1. Neo-extractivism: Even left-leaning governments in Latin America (Bolivia, Ecuador, Venezuela) relied heavily on commodity exports, reproducing the center-periphery dynamic that dependency theorists identified.

2. China’s role: China has become the primary trading partner for many Latin American countries, but the trade structure (raw materials for manufactured goods) mirrors the old dependency pattern.

3. Climate crisis: The environmental costs of extractivism are now impossible to ignore, adding an ecological dimension that the original dependency theorists didn’t fully account for.

Questions to explore

• How does the digital economy change the center-periphery model? Is data the new raw material?
• What would Prebisch make of the “pink tide” governments and their relationship with commodity exports?
• Is there a meaningful distinction between “old” extractivism (colonial) and “new” extractivism (national-developmental)?