The best explanation for the development of banana republics is:
- External economic influence and internal political corruption combine to exploit the resources of poor countries.
This concept refers to a situation where outside economic interests, often backed by powerful countries or corporations, influence and exploit the resources of less developed nations. This influence can lead to the establishment of corrupt governments that prioritize the interests of external entities over the well-being of their own citizens. The term "banana republic" originated from countries in Central America that heavily relied on banana exports and were subject to such exploitative practices by foreign companies. This economic dependency and political corruption characterize the development of banana republics.
