The paper examines some of the fundamental issues of dependency and underdevelopment in our contemporary international economic and political relations. The paper also analyses the paradox of foreign debt, which is supposed to be debt for development and financing development projects, but used as an instrument to perpetuate third world domination through financial imperialism. By adopting the secondary methodology, the paper discovers that, both advanced societies of the world and leaders of the third world are developing underdevelopment in the third world. The paper concludes that, third world indebtedness only exacerbates third world dependency on the economies of the advanced industrialized societies in this twenty first century. The paper recommends humanitarian aid to the third world against strategic aid, among other things.