6 C. Dependency Theory — "development and underdevelopment are twins"

• Claim: the world economy is one system: centre (industrial) and periphery (primary- exporting) — Prebisch's terms-of-trade argument (primary goods' prices fall relative to manufactures over time), Frank's "development of underdevelopment" (the periphery is not behind but drained), Wallerstein's world-system layers. • Prescription: import substitution, South–South trade, delinking. • Critique: East Asia's export-led success contradicts it; autarky failed where engagement succeeded; but its core insight survives — the terms on which you integrate matter (Nepal's open border, India-locked trade routes, and remittance dependence give the theory a permanent seminar room in Kathmandu). The three approaches in one line each: Linear — climb faster; Structural — transform, don't just grow; Dependency — check who sets the ladder's angle.