ABSTRACT
A state’s economic status is, conventionally, the key determinant of whether that state is counted as developed, developing, less developed or one of the least developed. Its economic organisation is therefore a definitive characteristic of the developing state. The structure of the economy is an inherently political process because there are, in its distribution of income, clear winners and losers. Developing countries have commonly been equated with agriculture- and minerals-based economies. A prime example of such export reliance is oil and/or liquefied natural gas, although copper, gold or other minerals such as diamonds can also dominate a small economy. The dependency model was initially developed in an attempt to understand why Latin American states – failing to develop local industry and thus remaining vulnerable exporters of coveted commodities – had declined relative to the United States.
