The main difference between dependency theory and modernization theory is that dependency theory mainly focuses on poor and underdeveloped countries, while modernization theory mainly focuses on rich and developed countries.
Dependency theory and modernization theory are two opposing theories in sociology. Dependency theory focuses on the economic underdevelopment of former colonies or non-industrialized countries, while modernization theory focuses on how traditional or underdeveloped societies transform to modern societies.
Key Areas Covered
1. What is Dependency Theory
– Definition, Characteristics
2. What is Modernization Theory
– Definition, Characteristics
3. Difference Between Dependency Theory and Modernization Theory
– Comparison of Key Differences
Key Terms
Dependency Theory, Modernization Theory
What is Dependency Theory
Dependency theory is an approach to understanding the economic development of a country in terms of the external influences like political, economic, and cultural effects on national development policies. This theory mainly explains the economic underdevelopment of former colonies non-industrialized countries. Dependency theory was first proposed by the Argentine economist Raúl Prebisch, and it gained popularity in the 1960s and 70s. Prebisch suggested that the increase in the wealth of the richer nations is at the expense of the poorer nations.
According to this theory, it is the peripheral position of the poor countries in the world economy that mainly cause underdevelopment. Resources flow from a periphery of poor and underdeveloped nations to a core of wealthy nations, enriching the richer nations at the expense of the poor nations. Generally, underdeveloped countries offer cheap raw materials and labour on the world market. The richer countries buy them and transform them into finished goods. The poor countries then end up buying the finished products at high prices. This drains the capital they can devote to upgrading their own productive capacity. In short, this is a vicious circle that continues the division of the world economy between ‘a poor periphery’ and ‘a rich core’.
What is Modernization Theory
Modernization theory is an approach to understanding how traditional or underdeveloped societies transform to modern societies. This theory is a major perspective in the sociology of national development and underdevelopment since the 1950s. Moreover, it mainly focuses on the ways in which past and present premodern societies become modern through economic growth and change in political, social, and cultural structures.
In general, modernization theorists focus on economic growth within societies and study the social, political, and cultural consequences of economic growth. They also study the conditions that are important for industrialization and economic growth to occur. Furthermore, industrialization, globalization and urbanization are concepts related to modernization.
Difference Between Dependency Theory and Modernization Theory
Definition
Dependency theory is an approach to understanding the economic development of a country in terms of the external influences like political, economic, and cultural effects on national development policies. In contrast, modernization theory is an approach to understanding how traditional or underdeveloped societies transform to modern societies.
Core Concept
According to dependency theory, some nations became rich at the expense of other nations, especially through colonization. However, according to modernization theory, increase in technology will make all nations wealthy, and poor nations can follow the path richer, modernized nations took.
Focus
Dependency theory mainly focuses on poor and underdeveloped countries, while modernization mainly focuses on rich and developed countries.
Rich Countries
In dependency theory, richer countries are the cause of global poverty while in modernization theory, richer countries are a solution to the problem of poverty.
Conclusion
According to dependency theory, some nations became rich at the expense of other nations, especially through colonization. However, according to modernization theory, increase in technology will all nations wealthy, and poor nations can follow the path richer, modernized nations took. Therefore, dependency theory mainly focuses on poor and underdeveloped countries, while modernization mainly focuses on rich and developed countries. Thus, this is the main difference between dependency theory and modernization theory.
Reference:
1.“Dependency Theory – Economic Development.” Economics Online, 27 Jan. 2020, Available here.
Image Courtesy:
1. “Developed and developing countries” By Sbw01f – self-made, data obtained from the CIA World Factbook (CC BY 3.0) via Commons Wikimedia
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