Impact of Dependency Theory on Economy: UK-India Relationship

This research study evaluates the impact of dependency theory on the economy, with a focus on the relationship between the UK and India. The study identifies the challenges faced by underdeveloped countries due to dependency theory and recommends steps for improvement.

An in-depth analysis of the
dependency theory

ABSTRACT
The current research study is being commissioned to evaluate the impact of
dependency theory over the working of the economy. A study on relationship of UK
economy with India. For this purpose, the researcher has utilized a secondary analysis
wherein different concepts in the context of dependency theory along with its impact on the
working of the economy have been identified significantly. The research methodologies have
been selected by the researcher on the basis of the topic under study and thus, inductive and
interpretivism approaches have been adopted. The secondary data being accumulated was
analysed using thematic analysis technique. The findings and the discussion of the study
revealed that dependency theory shows that developed countries uses the resources by
availing it from underdeveloped countries. It is resulting into making rich nation more
wealthy and other country poor. There is involvement of recommendations as well which
comprises significant execution of policy for eliminating poverty, inequality, etc. challenges.

CONTENTS
CHAPTER – 1: INTRODUCTION...........................................................................................1
Background of the study.........................................................................................................1
Research aim..........................................................................................................................1
Research objectives................................................................................................................1
Research questions.................................................................................................................2
Significance of the study........................................................................................................2
Structure of the report.............................................................................................................2
CHAPTER – 2: LITERATURE REVIEW................................................................................4
Overview of the chapter.........................................................................................................4
Concept of dependency theory and its significance...............................................................4
Impact of dependency theory over working of economy.......................................................5
Challenges faced by underdeveloped countries due to dependency theory...........................6
CHAPTER – 3: RESEARCH METHODOLOGY....................................................................8
Overview of the chapter.........................................................................................................8
Research approach..................................................................................................................8
Research philosophy...............................................................................................................8
Data collection methods.........................................................................................................8
Data analysis method..............................................................................................................9
Ethical considerations.............................................................................................................9
Research limitation.................................................................................................................9
CHAPTER – 4: FINDINGS AND DISCUSSION...................................................................11
Overview of the chapter.......................................................................................................11
Presentation of the results from the secondary analysis.......................................................11
CHAPTER – 5: CONCLUSION & RECOMMENDATIONS................................................16
Conclusion............................................................................................................................16
Recommendations................................................................................................................17
REFERENCES.........................................................................................................................19

TOPIC – “Impact of dependency theory over the working of the economy. A study on
relationship of UK economy with India”.
CHAPTER – 1: INTRODUCTION
Background of the study
In the present scenario in which the developing nations are increasingly moving into
the manufacturing production and there has been amount of rebalancing of international
power relations, it is quite usual to entitle that the world has altered dramatically subsequent
to the year 1970s and there is a requirement of the novel theories for comprehending the
current development issues and problems. Based on this, the present research work intervenes
in this debate to validate the dependent theory can provide useful insights that remain
pertinent for comprehending the altering development landscape of different economies of
the world such as UK and India. The dependency theory was being developed in the year
1950s under the direction of the Director of the United Nations Economic Commission for
Latin America, Raul Prebisch. Prebisch and his classmates (Ghosh, 2019). They were quite
concerned in regards with the reality that economic growth in the developed and
industrialised nations does not essentially results in the growth in the poorer nations.
Certainly, there studies have recommended that the economic activity in the developed or
rich nations most of the time results into serious economic issues in the developing or poor
nations. In this context, the current research work will be going to evaluate the influence
being created by the dependency theory over the working of economy and the challenges
being faced by the underdeveloped nations while managing the dependency theory.
Research aim
The main aim of the current research report is to evaluate the impact of dependency
theory over the working of the economy. A study on relationship of UK economy with India
Research objectives
For the purpose of fulfilment of the above aim and objectives, there will be
requirement of certain small objectives and these are as follows:
 To develop understanding relating to the concept of dependency theory and its
significance.
 To analyse the impact which is being created by the dependency theory over working
of economy.
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 To examine the challenges which the underdeveloped country faces while managing
the dependency theory.
 To recommend steps for improving the relation between UK and India with respect to
application of dependency theory.
Research questions
Some of the important research questions that will be answered in the current study
are as follows:
 What is the concept of dependency theory?
 What is the impact being created by the dependency theory on developed and
developing countries?
 What are the different challenges which the underdeveloped countries face due to
dependency theory?
 What are some recommendations which country need to follow in order to overcome
the challenges?
Significance of the study
The present research work will provide an aid to the researchers and the practitioners
working or is planning to work in the field of study related to dependency theory and will
help in comprehending its influence on the working of the developed as well as developing
nations. Through seeking help from the dependency theory, the research work is making an
attempt to explain the present underdeveloped state of different countries in the globe through
investigating the patterns of communication between the countries and through quarrelling
that countries inequality is an inherent section of those communication (Annan, Camdessus
and Rubin, 2008).
Structure of the report
 Chapter – 1 Introduction: This is the first chapter of the research study which entails
about the background of the study, the main aim and objectives of the research and its
significance. It also throws light on the overall structure that has been adopted for
carrying out the research adequately.
 Chapter – 2 Literature review: Literature review is the second chapter of the study
and its plays a very crucial role in the whole research work. It includes all the
previously literatures and scholarly work related to the topic under study and helps in
understanding the concepts and past work about the subject undertaken.
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 Chapter – 3 Research methodology: This is the third chapter of the study which is
again crucial as it entails the methodologies being selected for data collection, data
analysis, approaches and plan and procedure by which the whole research work will
be conducted. Even research limitation and ethical consideration are included in this
section.
 Chapter – 4 Findings and discussion: This is the second last chapter of the study
which includes the findings from the analysis of the secondary data being adopted.
The results are being discussed significantly for many interpretations.
 Chapter – 5 Conclusion and recommendations: This is the final section of the report
which helps in concluding the main findings of the study. In simple words, it
represents the interpretation of the results and suggests recommendations for
improvements.
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CHAPTER – 2: LITERATURE REVIEW
Overview of the chapter
The literature review section is an overview of the main literatures and writings which
are relevant and adequate for the research topic. In addition to this, this is the chapter which
helps in offering a smooth movement of discussion of what studies have already been done in
regards with the selected topic, what is known, what is not known and what is contrast with
the chosen field of study.
Concept of dependency theory and its significance
The dependency theory was being developed in the year 1950s under the direction of
the Director of the United Nations Economic Commission for Latin America, Raul Prebisch.
Prebisch and his classmates. They made an attempt to comprehend the reason as to why some
countries in the globe continued to be under developed (Cammack, 2010). Furthermore, there
was a concern that the richer or developed nations were prospering on the other hand poverty
was increased in the countries which are under developing. Throughout that time, the studies
have depicted that the economic practices in the nations which are wealthy were instrumental
in the deterioration of the poor nations. According to Herath (2008), these outcomes were
compared with the neoclassical theory that had stated that the growth of the economy offers
advantages to all the nations. As per the authors of the dependency theory, the exports being
done by the nations which are not rich offers advantages to the developed nations as they are
making use of them as raw-materials for their industries.
Astonishingly, the nations who are quite wealthy, exports the end products to the poor
nations. Accordingly, the rich nations earn foreign exchange at the expense of the nations
who are not rich. Most of them encompasses the small internal markets in the under
developed nations, failure of the poor nations to make modifications and restriction of these
nations to export their merchandise (Todaro and Smith, 2003). For this reason, the
dependency theory has been developed. Subsequently, the scholars have developed the theory
of dependency in an effort to make justification of the concentration of poverty in the under-
development nations. Previously, the neoclassical theory pre-destined the poor nations,
ascribing their economic position or standing to their postponement in managing and taking
crucial economic decisions. Nevertheless, as per Ghosh (2019), the theory of dependency
opposed their views with entitlements that poverty in these nations was being obtained from
exploitations through the capitalists.
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According to Abuzeid (2009), the dependency scholars contended accept that the
worldwide colonialists are contributory in the propagation of reliance in the unfortunate
nations. One of these scholars is Andre Gunder Frank who affirms that further
underdevelopment of poor people nations is brought about by the entrepreneurs’ monetary
practices. In addition to this, as per Kapoor (2002), dependency theory depends on the
Marxist speculations that make sense of the purposes behind the global disparity. They attest
that monetary elites use optimism and authenticity philosophies to legitimize variations
among the rich and unfortunate nations around the world. Thusly, dependency theory puts
together its contentions with respect to the Marxist speculations. It further contends that the
nations which are developed utilize the idea of class to lay out specific systems that protects
and assist their necessities.
Impact of dependency theory over working of economy
According to Bourguignon (2016), dependency theory is an approach to
comprehending the financial underdevelopment that highlights the supposed restraints
executed through the worldwide political as well as economic order. As per the dependency
theory, the main reason behind the underdevelopment is nothing but the peripheral position of
the impacted nations in the global economy. Characteristically, those nations which are yet to
be developed provide cheap labour along with the raw-materials on the global market. These
resources are being sold to the developed economies of the world, which have the means to
alter these raw-materials into finished products. Furthermore, the nations which are
developing finally buy the finished products at higher prices which in turn depletes the capital
that they might have devoted towards upgradation of their own creative capacity. The
outcomes are a malicious cycle that continues the division of the economy of the globe amid
the rich core and the poor margin. On the other hand, according to Baffes and et.al, (2015),
moderate dependency theorists like Fernando Henrique Cardoso, a Brazilian sociologist takes
into account some development level to be possible within the system, more radical scholars
like Andre Gunder Frank, a German American economic historian makes an argument that
there is a single manner to be out from the dependency was the generation of a non-capitalist
and national economy.
According to Annan, Camdessus and Rubin (2008), there are a few variations of
dependency theory. One started in Latin America and can be viewed as that district's unique
commitment to political economy. One more is the American-Marxist custom created by
Baran, Sweezy, Gunder Frank and Wallerstein (Todaro and Smith, 2003). Yet, the thoughts
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are not new. The pioneer behind the Latin American school was Raúl Prebisch. It arose
during the 1950s as a response to deregulation theories. Latin American underdevelopment
was viewed similar to the outcome of over the top dependence on products of essential wares,
whose costs showed a descending pattern over the long haul; an instance of breaking down
terms of exchange. Thus, contribution in world exchange was viewed as an exercise in
futility. As an outcome most Latin American nations took on procedures of independence or
independence (Chris, 1985). They tried to speed up industrialization through import
replacement and broaden sends out. High duty dividers were raised. However, this model of
improvement ran into issues as it would in general compound equilibrium of payments
hardships (Annan, Camdessus and Rubin, 2008).
Challenges faced by underdeveloped countries due to dependency theory
According to Frank (1967), it has been argued that the developing countries such as
India were not successful in developing not only due to the internal barriers towards
development as argued by the modernization theorists, however it is main due to the fact that
the developed Western countries such as UK have methodically underdeveloped them,
keeping them in a situation of dependency, henceforth, dependency theory. He further makes
an argument that a world capitalists system emerged in the 16th century which increasingly
locked Latin America, Asia and Africa into similar as well as manipulative affiliation with
the stronger nations of Europe (Kabonga, 2015). This world capitalist system is being
organized as an interlacing cable that is at the one end there are rich metropolis or core
countries which is European countries and at other end there are nations which are not yet
developed or periphery countries such as India. The core countries are being in a position to
use the peripheral countries due to their superior financial as well as military power (Anievas
and Nişancıoğlu, 2015).
Moving further, from the dependency viewpoint of Frank (1967), the history of the
world from the period 1500 to 1960s can be best comprehended as a procedure whereby the
rich counties of Europe have gathered large amount of wealth by extracting natura resources
from the counties which are developing. The profits being earned from this are being paid for
social and financial development and industrialization (Matunhu, 2011). On the other hand,
the developing nations like India were made impoverished in the process. Furthermore,
scripting in the late 1960’s it has been further argued by Frank that the developed countries
such as UK had a conferred concentration in keeping the countries who are poor in a
condition of underdevelopment like India so that they can continue to avail advantages from
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the financial weaknesses of these countries (Romaniuk, 2017). Developing nations such as
India are well-prepared for selling the raw-materials at reasonable prices and the employees
will work for less as compared to the people in more financially strong nations. As per Frank
(1967), the countries which are developed usually have a fear of development and evolution
of the poorer nations due to the fact that their development will going to threaten the property
along with dominance of the western world.
Underpinning the discussion further, according to Aruko and Aruwolo (2010), another
challenge being posed by the dependency theory on the underdeveloped countries such as
India is related with poverty. In addition to this, community no longer considers poverty as a
natural phenomenon or the punishment by the god or karma of an individual. This is due to
the fact that the now people believe that poverty along with its implications are being
generated by mankind, these situations have become intolerable. The growth along with the
protest influence of the developed nations such as UK and the huge distance yet to be
voyaged by most of the other nations only strengthen consciousness, so that some of the
individuals resign themselves to being poor and accept it as their destiny (Ajayi, 2000).
In addition to this, as per Gukumure (2012) there is one more challenge that the
dependency theory poses on the underdeveloped nations like India and this is the demand for
equality which have been internationalized. Till the cutting-edge time, the distinctions of
capital inside social orders were far more prominent as compared to the distinctions of capital
among social orders. In the premodern period all over, a little well off world class was
overlaid on a ruined mass, a circumstance still pertinent in several spots. Nowadays, in any
case, the distinctions of capital inside the created nations are less significant as compared to
the distinctions of capital among nations; the singular living in destitution in Europe and
America is undeniably more affluent than the mind-boggling majority of humanity living in
the Third World or underdeveloped nations like India (Rajan, 2008). In the cutting-edge
world, whether one is moderately rich or poor has become progressively a component of the
specific ethnicity into which one is conceived. As an outcome, the class battle inside social
orders, as depicted by Marxists, has become to some extent dislodged, on the off chance that
not outdated, by the contention among social orders over the worldwide dissemination of
material riches (Nazneen, 1993).
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CHAPTER – 3: RESEARCH METHODOLOGY
Overview of the chapter
In the research study it is vital to explain the methods being utilized for conducting
the study and this chapter entails all the details in relation with the research methodologies
being adopted by the researcher for completing the study successfully. Data collection and
analysis methods, approaches and philosophies being used is included in this section. Even
the ethics being considered and limitation of the study is also presented in this chapter.
Research approach
Talking in relation with the research approach, it is nothing but the plan and
procedure which is a widen notion where steps conacring the methods of collecting
information and evaluation has been utilized for drawing a valid conclusion. There are mainly
two types of research approaches that is inductive and deductive which can be adopted by the
researcher. In accordance with the selected topic under study, the researcher has utilized
inductive research approach (Bairagi and Munot, 2019). This is being selected as inductive
research approach will support the researcher in integrating the theoretical aspect of the study
and offer a valid result. Further with this approach, the scholar can determine the influence of
dependency theory on the working of both developed and underdeveloped economy of the
world.
Research philosophy
Research philosophy is also about the idea by which the information concerning the
selected phenomenon is accumulated as well as evaluated. There are majorly two kinds of
research philosophies that is interpretivism and positivism. In relation with the current
research work, the research has utilized interpretivism research philosophy as it supports in
concluding the valid outcomes concerning the dependency theory (Mohajan, 2018). In
addition to this, the present research work is qualitative in nature and thus, interpretivism is
quite adequate for such kind of study.
Data collection methods
Data collection plays a very crucial role in almost every research work. Seeking
support, the data collection methods, researcher accumulates the relevant data which further
assist in conducting the study effectively reaching the final conclusion. There are mainly two
types of data which are being gathered by the researcher such as primary and secondary data.
Primary data is collected for the first time in the research. However, secondary data is already
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available data in the context of the selected topic. As far as the present research work is
concerned, the researcher has adopted secondary data collection method. In this, the data is
being gathered through exploration of varied journals, articles, scholarly papers, books and
online sources relevant to the current topic understudy (Snyder, 2019). This is being selected
for having more authentic outcomes.
Data analysis method
Talking in relation with the data analysis method, it is being referred as the process of
inspection, cleaning and modifying the information with the main objective to extract the
useful data that further offers supports in making crucial decision making. The evaluation of
the information supports in deriving the valid results and helps the researcher in reaching the
final conclusion. There are two important methods through which information gathered can
be evaluated that is qualitative and quantitative analysis (Pandey and Pandey, 2021).
Qualitative analysis involves less tangibility however quantitative analysis involves more
hard data. In the present research work, the researcher has adopted qualitative analysis
wherein thematic analysis is being utilized. It involves presentation of the information in the
form of common themes and patterns. With this method, the researcher is being able to
present the findings effectively and can fulfil the aim successfully.
Ethical considerations
As in the current research work, secondary data is being involved and thus, it also
involves ethical considerations right from the initial design of the study to the analysis of the
information. Some of the ethical considerations being followed in the present research work
are:
 Confidentiality of the information is being maintained and has been made sure that it
has not been shared anywhere other than the research purpose
 The data collected for the present research work is safe from unauthorised access,
accidental loss and destruction (Ngozwana, 2018)
 The information obtained is accurate, relevant and not excessive
 Furthermore, the information which is collected in the form of hard copies are being
kept safe in locker and the soft copies are being saved in the form of encrypted files in
computer
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Research limitation
There are three main research limitations in the present research work that is time,
money as well as unavailability of the resources. These limitations have somehow impacted
the overall outcomes of the study. Firstly, because of the lack of time, the researcher has only
used qualitative analysis method as it consumes less time as compared to the quantitative
analysis. Secondly, because of the lack of money, this study has been used in the study as
there is no high amount being involved in the qualitative study for deriving enhanced result.
Other than this, for removing the limitation of the unavailability of the sources, keywords of
the study have been utilized which helped in concluding the outcomes effectively.
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CHAPTER – 4: FINDINGS AND DISCUSSION
Overview of the chapter
Talking in relation with the finding and discussion chapter, it is by far the most vital
and essential section of the whole research work as it includes the main findings or outcomes
of the study and helps in fulfilling the main aim and objectives of the work. This is the
section where interpretation of the accumulated information is being done and the results are
being explained effectively. Furthermore, it is that section where the researcher delves into
the sense, significance and relevance of the results being obtained.
Presentation of the results from the secondary analysis
As far as the present research work is concerned, the researcher has adopted
secondary data collection method. In this, the data is being gathered through exploration of
varied journals, articles, scholarly papers, books and online sources relevant to the current
topic understudy. This is being selected for having more authentic outcomes. Additionally,
the researcher has adopted qualitative analysis wherein thematic analysis is being utilized. It
involves presentation of the information in the form of common themes and patterns. With
this method, the researcher is being able to present the findings effectively and can fulfil the
aim successfully. The common themes being determined through analysis are as follows:
Theme – 1: Dependency theory explains the economic development of states
Interpretation
This theme is related with the fact that the dependency theory explains the economic
development of the states. From exploring different articles and journals in this regard, it has
been originated that according to Easterly (2006), dependency theory is a very famous theory
within the social sciences which significantly elucidates the economic development of the
states. This theory was being industrialized throughout the late 1950s and over the subsequent
two decades mainly under the generous campaigner Raúl Prebisch who was the director of
the United Nations Economic Commission for Latin America (UNECLA) and development
economic expert Hans Singer. It explains the economic development of states is being
explained by Abuzeid (2009), who stated that the dependency theory is the outcome of a
widespread search for finding out a hypothetical outline to sufficiently evaluate and describe
both development as well as under development within the international system. It is being
done by enabling the researchers as well as practitioners to gaze towards the extremal matters
like economic, politics, culture and makes efforts to come to a comprehension of the ways
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these problems impact the policies related to development. Furthermore, it has also been
found out from the evaluation of different secondary sources that there are mainly three
features of dependency theory which are very outstanding. The very first is the international
system which is being considered as the sum of two sets of states that is the dominant and the
dependent. Secondly, the dependency theory embraces that the external forces are perilous in
relation to the financial activity of the dependent states. Finally, the association on the basis
of historical patterns as well as dynamics that is the internationalization of capitalism amid
the dependent and dominant states are a vivacious process wherein the exchange is been
taken place amid the states playing a substantial role in the strengthening of patterns of
inequality.
Theme – 2: Dependency theory is not a single strand of theory
Interpretation
Through exploration of different journals and articles and other secondary sources it
has been originated that the dependency theory is not a single strand of theory by these author
that is Aruko and Aruwolo (2010), who were considered as an ancestor of the dependency
theory. They further stated that it is rather a consolidation of the works of numerous theorists.
Consequently, it would be ambiguous to recommend that there is only one united theory of
dependency. This theory was being appeared to be occurred in the year 1950 as a direct
answer to the insufficiencies of the modernisation theory. Most of the philosophers were
unfulfilled and upset by the details that persistent development in rich as well as developed
nations failed in bringing attendant evolution in the underdeveloped or developing nations.
According to Frank (1967), it has been explained that the appearance of dependency as an
element of theorising through noting the conventional expansion philosophies epitomised by
modernism does not imprison the types of association that takes places amid the developed
countries and underdeveloped areas of the globe. Assuming this conspicuous inadequacy,
there is a requirement to delve deeper into the types of association that takes places between
the rich nations and poor nations. This is further supported by the secondary data where it has
been argued by Frankl (1967) that modernity theories are pomposity because they do not
reveal the main motive behind the giving of donor aid to underdeveloped nations. In addition
to this, it has also been found out that the dependency theory is being preceded on the detail
that resources move and flow from nations which are poor which are also been referred as
periphery to the rich nations which are defined as the core. This movement of resources and
raw-materials helps in enriching the core and impoverish the periphery.
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Theme – 3: Dependency theory has a great impact on working of economy
Interpretation
After conducting the secondary analysis, it has been found out that the dependency
theory has a greater amount of influence on the working of the economy. This is being
supported by the literature review being conducted wherein according to Bourguignon
(2016), dependency theory is a way to deal with monetary underdevelopment that features the
alleged restrictions executed through the overall political plus financial request. According to
the dependency theory, the principal purpose for the underdevelopment is only the fringe
position of the affected countries in the worldwide economy. Distinctively, those countries
which are yet to be created furnish modest work alongside the unrefined components on the
worldwide market. These assets are being offered to the created economies of the world,
which possess the ability to adjust these natural substances into completed items. Other than
this, according to Cammack (2010), the actions being taken by the government of the under-
developed nations which are following and considering the dependency theory failed in
producing higher level of independence along with prosperity for their economy rather have
produced misery and poverty and a higher level of dependency on the global help and charity.
Misery and poverty were being stemmed from severe decrement in the stocks and movement
of consumer as well as manufacture products, decrement in the manufacturing ability and
laying off of workers particularly in the production sector, important augmentation in both
black market and official prices and augmentation in the social tension along with violence
(Gilpin and Jean, 2001). Thus, from the above analysis, it can be very well stated that the
application of dependency theory was success for the core countries however it was a failure
for the periphery countries.
Theme – 4: Underdeveloped countries like India faces the issues related to poverty
Interpretation
From the evaluation of the varied sources related to the topic under study, it can be
attributed that the underdeveloped counties such as India faces the problems in relation with
the poverty due to the application of the dependency theory. As per Aruko and Aruwolo
(2010), local area no longer thinks about destitution as a characteristic peculiarity or the
discipline by the god or karma of a person. This is because of the way that currently
individuals trust that destitution alongside its suggestions is being created by humanity, these
circumstances have become deplorable. The development alongside the dissent impact of the
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created countries like UK and the tremendous distance yet to be journeyed by a large portion
of different countries just fortify cognizance, so a portion of the people surrender to being
poor and acknowledge it as their fate. In addition to this, according to Romaniuk (2017), it
has also been found out that the dependency theory is being preceded on the detail that
resources move and flow from nations which are poor which are also been referred as
periphery to the rich nations which are defined as the core. This movement of resources and
raw-materials helps in enriching the core and impoverish the periphery. This is being
supported by the literature review being conducted in the present research work wherein
according to Ravinhill (2014), the countries who are very affluent, sends out the finished
goods to the unfortunate countries. As needs be, the rich countries procure unfamiliar trade to
the detriment of the countries who are not rich. The vast majority of them envelops the little
interior business sectors in the immature countries, disappointment of the unfortunate
countries to make alterations and limitation of these countries to send out their product.
Theme – 5: Developed nations like UK avail advantages from the financial weaknesses
of India
Interpretation
Through exploration of different journals, articles and other secondary sources it has
been originated that the those who are developed countries such as United Kingdom, they
avail the benefits from the financial weaknesses of the under-developed or developing nations
such as India. According to Paul (1967), the dependency theory of the underdevelopment
upholds that the relation of nations which are less developed with more developed or
industrialized nations has functioned to the disadvantage of the countries which are less
developed like India. In this regard when it was researched then it was originated that
financial, management skills, technology along with the real coital which was originated in
the industrialised nations such as UK are assumed to have impacted or offended the countries
which are yet to be developed like India. This is due to the fact that the imported technologies
do not take along or consider the abundance of their relative factors. In addition to this, it has
also been found out and supported by Lohani (2004), that advanced technology is generally
related with high capital labour ratios and a higher amount of skill combination. Since, India
which is yet to be developed nations have comparatively poor skills and capital, technologies
from the industrialized nations like UK, are assumed to leave them disaffected in the
manufacturing process along with the deprived of a large share of the value added in
manufacturing. Other than this, as per Ahiakpor (2009) foreign or overseas technologies are
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also attributed to give competition unethically with and destroy the techniques of the local
manufacture, generating a pool of marginalized as well as unemployable people.
Theme – 6: Trading patterns of UK and India result in continuous growth of political
and economic power for the UK at the expense of India
Interpretation
After conducting the secondary analysis of different journals, articles and books, it
has been found out propositions that the third world countries popularly known as India and
other developing nations does not occurs to be in isolation. As per Jackson and Georg (2013),
there is a single manner of comprehending in the terms of the world political as well as
economic system. Further, political conditions and happenings in India are some or the other
way connected with the conditions or happenings in the first world nations such as UK which
are developed and industrialized. Nevertheless, association amid both these countries that
India and UK are asymmetrical. The movement of control along with the power is from the
United Kingdom to the India. Moreover, it has been also originated from the study and
evaluation being conducted that the financial along with the political happenings in the
United Kingdom have a greater influence on the financial conditions and political scenario of
India which is the third world. however, the economic events of India do not have a
significant influence on the politics and economic condition of UK. Besides, as per Gilpin
and Jean (2001), within the financial as well as political system, there is a m incredible
degree of communication between both the nations and their people. But there is a small
amount of communication between the India and other developing nations. As a result,
periphery nations such as India have an unequal association with the strong UK.
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CHAPTER – 5: CONCLUSION & RECOMMENDATIONS
Conclusion
From the above report it can be mentioned that the dependency theory provides the
crucial insights are regarding the underdeveloped countries and relates their position in the
international economic system. There is certain level of the impact of dependency theory over
the working of economy which is basically regarding the relationship of UK with India. The
current study has given emphasis on having the significant objectives, aim and research
questions so that precise understanding regarding the particular subject matter via following
the road map for carrying forward research. In addition to this, literature review has been
taken into the procedure for gaining the crucial insights such as concept of dependency theory
& significance which has helped in evaluating those richer countries are prospering whereas
underdeveloped countries are becoming poorer. It is indicating that higher level of the
earnings is earned by the rich countries. In addition to this, theme of impact of dependency
theory over working of economy has helped in evaluating that developed countries tend to
use the resources available for developed country. This helps in evaluating in few variations
of dependency theory which comprises having the speed up industrialization through import
replacement and broaden sends out. There are various challenges which are basically faced
by the underdeveloped countries due to the dependency theory such as demand of equality,
etc. which is involved in the theme three. There is significant information regarding the
dependency theory has been mentioned in the current study which has aided in gaining depth
information.
Research methodology has given focus on having the significant information
regarding the application of type which involve qualitative, inductive approach,
interpretivism philosophy, data collection by using the secondary method. In addition to this,
it has majorly focused on having the significant compliance with the ethical requirements of
organization in tun accomplishing goal of having completion of study in most precise
manner. There is focus on having focus on achieving the information regarding the
limitations which include lack of time, less time, etc. in turn accomplishing the goal of
effective completion by using qualitative type of the study. Findings have helped in gaining
the critical insights regarding the dependency theory which aids in gaining the insights
regarding development of states which has depicted that there is impact of the policies in the
growth of the organization. This has overall allowed to get the accurate information that in
sum of the two states as per the dependency theory there is application of one dominant and
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other dependent firm. It has given the insights that there are involvement financial activities
which get affected from external factors so that creates the pattern of inequality in adverse
manner. In addition to this, it has been identified that there is significant presence of various
theories which play role in understanding the highlighted subject matter which are
modernization theory, etc.
On the basis of the above findings, it can be mentioned that there are different ways
in which great impact of working h of economy is found. In addition to this, there are the
various ways in which the developed countries such as India faces the challenges of poverty
that has major level of adverse impact on the industry growth that is needed to be overcome
by taking the crucial action so that effective growth can be obtained. This is indicating that
developed nations like UK take the number of the benefits which comprises financial benefits
that tend to result in weakening development of India and strengthening growth of United
Kingdom. On the basis of this, it can be interpreted that there is different form of the aspects
as per the dependency theory which involve having significant development of rich countries
that tend to adversely affect the growth poor countries. There is trading patterns between the
selected nations which is permitting UK to get continuous growth of political & economic
power at the expense of India.
Recommendations
 It is recommended to the underdeveloped country to pay attention on having the
significant application of the policies that can allow the organizations to get the
precise ability to coordinate with the requirements of international competition
(Ghosh, 2019). It is important for the India to focus on having such commercial
practices that can allow businesses to resource optimization by reducing cost in turn
taking the action regarding setting corrective prices for trading in global market so
that ability to compliance with requirement of attracting higher customer as
compared to developed nations who set higher profit margins. The main reason
behind this is that there is application of supporting industries to avail resources,
reducing cost, etc which can permit in having ability to obtain standardized
processing in turn accomplishing goal of possessing equality can become possible.
 This is suggested to focus on executing the actions of offering higher level of
opportunities for employment which comprises boosting the business practices. The
main fact behind the application of boosting the financial capabilities of individual
to establish business in turn higher employment opportunities can solve the issue
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regarding poverty. The one of the major issues that is hampering the overall
financial weaknesses of country is that there are lower employment opportunities
which does not allow the people to accomplish their daily requirements. On the basis
of this it can be mentioned that offering employment opportunity helps in
eliminating the adverse impact of trading with dominant nations. It can boost the
overall financial position of under developed country by eliminating situation of
poverty in turn accomplishing good standardized performance in overall country.
 It is advised to the particular mentioned developed country to emphasize on creating
the awareness of dependency theory in nation so that higher focus on trading with
local companies is exerted. It can help in eliminating the trading with those country
that are just buying the cheap labor, etc resources for their own profitability and
adversely affecting the growth and development of own undeveloped nation. This is
recommended to India as here many cheap raw materials are being present as
compared to other developed countries. So, UK takes the benefit of this and as a
result of this the resources are taken from here are used in UK. This provides benefit
to the people or companies in UK as they get the resources at cheap level and sell the
final produced products at higher rate. Hence, this improves the working efficiency
of UK companies and also the profitability of the country will also increase. This is
also very important to create awareness relating to the dependency theory.
 In addition to this it is also advisable to the developing and under- developed
countries is to create a cartel for the peripheral countries. This is necessary for the
reason that when the peripheral countries will be referred then this will make the
countries stronger and will increase the working efficiency of the business as well.
When the peripheral country is being linked with the core nation then this improves
the working of the country and this results in development of the under- developed
country as well. Moreover, the concept of making the cartel will include the
involvement of the countries who are already underdeveloped and this will be
affecting the development of the working of country. Hence, this will help all the
countries being present in the cartel to grow and develop in better and effective
manner. Thus, this will be increasing the working efficiency of the countries and will
try to grow and develop in better and effective manner.
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