Case Studies Supporting Frank Gunder’s Dependency Theory

This part of the essay will seek to examine the merits of Frank Gunder’s theory through certain
case studies of countries in Latin America and Africa.These continents have historically
suffered the most economic exploitation and have been used by imperial powers as nothing
more than a ground to source for raw materials and products. Cuba, Venezuela, Nigeria, and
the Democratic Republic of Congo (DRC) are all countries which suffer from a similar fate,rich in
raw materials and an abundance of natural resources,they have been pillaged and exploited by
colonial and imperial powers.These countries are also largely underdeveloped with Nigeria for
example being the world’s poverty capital.

Cuba’s dependency and the struggle for economic and political freedom

Cuba's economic and political history exemplifies the dependency framework. Before it’s
independence in 1898, Cuba was nothing but a sugar-producing outpost for the Spanish
colonial empire. The island’s economy was structured around the extraction and export of raw
sugar,which only benefited the Spanish elites.After gaining formal independence in 1902, Cuba
became heavily reliant on the United States, continuing its role as a supplier of sugar and
importer of manufactured goods.

Frank’s concept of the "metropolis-satellite" relationship where the wealthier country exploits
the developing country is evident in this dynamic. American corporations controlled significant
portions of Cuba's agricultural land and infrastructure, creating an economic structure that
prioritized exports over domestic development. This dependency thus stagnated Cuba’s
economic development as its economy remained vulnerable to fluctuations in global sugar
prices and the United States policy decisions. ‌(Frank, 1969)

The five-year Cuban revolution war which overthrew Fulgencio Batista’s government ended
with Fidel Castro taking over the reins of power.Fidel Castro’s government sought to break free
from dependency by nationalizing industries and pursuing socialist economic policies. While
Cuba made significant gains in its health sector and education, its economic reliance on the
Soviet Union during the Cold War shifted its dependency from one metropolis (the United
States) to another (the USSR). The collapse of the Soviet Union in 1991 further exposed the
vulnerabilities of Cuba’s dependent economic structure, leading to severe economic
hardship.Moreover,economic sanctions by the United States of America and other World
powers further hampered their development process.(Hennessy, 1964)

Venezuela: Oil Dependency and Economic Vulnerability

Venezuela’s economic and political history also reflects the core elements of the dependency
theory, particularly through its reliance on crude oil exports. At the start of the 20th
century,Venezuela emerged as a major oil producer, with foreign companies and conglomerates
particularly from the United States, dominating the industry. This arrangement paints a picture of
Frank’s idea of surplus value extraction, as profits from Venezuela’s oil production flowed to
multinational corporations rather than contributing to national development.

While oil revenues brought wealth to the political and economic elites in Venezuela with masses
still living in abject poverty and lack.Venezuela also failed to diversify its economy with the
growth of other important sectors like Agriculture,tourism and health stagnating.Dependency on
oil exports made Venezuela’s economy highly susceptible to global price fluctuations. During
periods such as 1970s when crude oil was at an all time high, the government pursued
ambitious social programs, but these were unsustainable during sharp drops in global oil
prices , as seen in the 1980s and 2010s. ‌
(Tugwell & Allen, 1979)

Frank’s conception of structural inequality is quite evident in Venezuela’s dependency on

foreign capital and its limited control over its economic trajectory. Although former President
Hugo Chávez and his successor Nicolás Maduro attempted to challenge dependency through
socialist policies and resource nationalism, these efforts were undermined by mismanagement,
corruption, and continued reliance on oil exports. The result has been economic instability,
hyperinflation, and deteriorating living standards, reinforcing the cycle of underdevelopment.

Moreover,The political situation in Venezuela has further hampered their development

prospects.The recently concluded elections in the country was met with widespread skepticism
and negativity by the foreign media.Accusations of Rigging and voter suppression were raised
against the incumbent president (Nicolas Maduro) .The political interference by the United
States of America is also an issue of contention with critics accusing the United States of using
the political crisis as an avenue to pursue its economic interests and ensure more access to
Venezuela’s oil.(Breda, 2024)

Nigeria: Oil Wealth and Persistent Underdevelopment

Nigeria’s economic situation further provides another illustrative case of dependency through
resource extraction. Like Venezuela, Nigeria is heavily dependent on oil exports with it
accounting for majority of its government revenue and foreign exchange earnings.

Prior to it’s independence,The British Colonial authorities established extractive industries that
prioritized the export of raw materials like timber,rubber and coal over the development of local
industries. Moreover ,the improvement of Human Resources through education was also
neglected.Post-independence, Nigeria inherited this economic structure, which continues to
prioritize resource extraction for global markets.

Frank Gulak’s central idea of the “Development of the underdeveloped” is evident in Nigeria’s
experience. Despite being Africa’s largest oil producer, Nigeria has struggled with widespread
poverty, unemployment, and infrastructure deficits. Multinational oil corporations such as Shell
and Chevron dominate the industry, extracting surplus value while leaving environmental
degradation and social unrest in their wake, particularly in the Niger Delta region.The ogoni
community of the Niger Delta region have lost access to their farmlands and water resources
like rivers for fishing and other economic activities due to crude oil spillage.(Saro‐Wiwa, 1995)

Nigeria’s reliance on imported refined petroleum products, despite its status as a major crude
oil exporter further buttresses this theory.The country’s refineries have been largely ineffective
and even nonexistent due to maladministration and corruption.This situation further perpetuates
Nigeria’s dependency on foreign markets and technology. Efforts to break this cycle, such as
the establishment of local refineries,diversifying the economy and supporting local industries
have been hindered by corruption, mismanagement, and political instability.(Otaha,2012)

Democratic Republic of Congo (DRC): A Classic Example of Resource Dependency

The DRC is one of the most resource-rich countries in the world, possessing vast reserves of
precious minerals such as cobalt and diamonds. However, it remains one of the poorest and
most underdeveloped nations, exemplifying Frank’s dependency framework. During the colonial
era, Belgium under Leopold II exploited Congo’s economic and human resources to benefit
European markets, establishing an economic structure that prioritized extraction over
development.(Rich,2009)

This metropolis-satellite dynamic has also persisted into the post-independence era.
Multinational corporations continue to dominate the country’s mining sector, extracting
resources that fuel global industries while leaving minimal benefits for local populations. The
flow of wealth from the DRC’s mineral-rich regions to foreign markets perpetuates the cycle of
dependency, as the country remains reliant on primary commodity exports.(Dimcevska et al.,
2007)

The DRC also illustrates Frank’s concept of structural inequality. Global demand for minerals
such as cobalt, essential for modern technologies like smartphones and electric vehicles, has
not translated into meaningful development for the country. Instead, the Democratic Republic of
Congo has been plagued by conflict, corruption, and exploitation, with profits from mining often
fueling armed groups rather than going towards national development.
Cuba, Venezuela, Nigeria, and the Democratic Republic of Congo provide ample evidence
supporting Frank Gunder’s dependency theory. These countries are proof of how historical and
ongoing exploitation by the world’s powerful economies and developed countries has
perpetuated underdevelopment in peripheral nations. These countries remain locked in cycles
of dependency that hinder their ability to achieve sustainable development. While each case
has its unique context, they collectively show the systemic nature of underdevelopment as
postulated by Frank Gunder in his theory.