History
Explainer
Why Independence Didn't End Dependence
Ghana became independent in 1957, so why did its economy still look colonial?
Quick check · tap an answer to continue
Lesson notes
Key points
- Dependency theory argues that poorer 'periphery' economies stay locked into serving richer 'core' economies after formal colonial rule ends.
- The mechanism is unequal exchange: the periphery exports cheap raw materials and imports expensive manufactured goods.
- Ghana's reliance on cocoa and gold left it exposed when world prices fell, as cocoa prices did in the mid-1960s.
- Nkrumah called this neo-colonialism, and responses included import-substitution industrialisation to build local factories.
Definitions
- Dependency theory
- Idea that periphery economies stay structurally tied to and shaped by core economies after colonialism
Takeaway: Political independence does not automatically bring economic independence.
Quick check: In dependency theory, what does the periphery mainly export to the core?
- Raw materials
- Manufactured goods
- Financial services
Periphery economies export cheap primary goods and import costly manufactures.
Dependency theoryUnequal exchangePrice shocksNeo-colonialism
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