ABSTRACT
The dependent economy will be inter-linked with the foreign capitalist sector. In simple underdeveloped structure, the mass of the wages generated in the exporting sector becomes a dynamic element. F. H. Cardoso puts forward a new type of arguments which looks at the dependency theory as something congenial to and not opposed to economic development of the peripheral countries. Gunnar Myrdal observes that in an underdeveloped economy, a process of circular causation is sure to start. This process will have some effects which will be cumulative in the fashion that is similar to vicious circle idea. According to Giddens, different types of societies exist alongside each other and there is no inevitable progression from one to the other. In Giddens’s analysis, modernity is understood as industrialism. In his view, industrialism refers social relations implied in the widespread use of material power and machinery in the process of production.
