Modernization and Dependency Theory- Comparing and Contrasting

Running head: MODERNIZATION AND DEPENDENCY THEORY-COMPARING AND CONTRASTING
MODERNIZATION AND DEPENDENCY THEORY-COMPARING AND CONTRASTING
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Introduction
Theories help define a situation in a much better perspective than vague contemplations and
assumptions. The essay aims to provide elaborate discussion on the two theories that explain the
economic environment of the contemporary world. The essay will first provide brief description of the
two theories, then compare and contrast those. The theories chosen for the purpose include the
Modernization Theory and Dependency Theory. Further, the essay will discuss the pros and cons of
the two theories in explaining the modern global situation. Based on the analysis, the essay will then
explain the reasons behind the selection of one theory as best for describing the contemporary
situation. While Modernization theory is used to explain the modernization process, taking place in
societies, Dependency theory explains the exploitation of the poor by the rich (Sevilla Guzmán and
Woodgate 2013). In the contemporary world, businesses are rapidly integrating and the globalization
phenomenon has contributed to it. Countries across the globe are indulged in international business
and other exchanges thus blurring the boundaries that were present earlier. On one hand, globalization
has allowed poor economies to come forth and establish their worth, on the other; it has also increased
the power of the richer economies (Cvetkovich 2018). In fact, many scholars and experts believe that
it has increased the gap between the developed and the developing nations. However, proponents of
globalization argue that the phenomenon has empowered the developing nations to grow faster that
were not possible in the past. Comparing and contrasting the two chosen theories would help in
understanding this in a better perspective.
Discussion
The theory has its origins in the work of max Weber, the German sociologist and dates back to
the 19th century. Talcott Parsons, a Harvard sociologist further developed this theory during the later

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part of the 19th century that laid the foundation for other future theorists of Modernization (Wittrock
2017). The theory was at its peak during the 1950s and 60s but lost its effectiveness after that and then
reemerged in the 1990s but its controversial status remained (Vanderstraeten 2013). According to the
theory, development of traditional societies is possible only if they adopt modern practices on a larger
scale. The theory emphasizes the need for traditional or developing societies to follow the pattern of
development of developed nations. In the views of (Saat 2013), Modernization theory provides the
developing nations a set framework of development following which they could increase the rate of
development in their countries. The authors further point out that the theory presents a systematic
approach for other theorists and researchers in this field to understand the process of modernization in
traditional societies. (Midgley 2016) on the other hand, argue that the theory is biased as it gives
importance to the rich and asks traditional societies to destroy their long-held culture and tradition to
become modern. They further reject the theory stating that it views the West as the sole example of the
modern society. Others criticized this theory on grounds of feasibility as they argued that social and
economic development pattern in one country does not necessarily work in other countries.
The Dependency Theory was proposed as a protest of the Modernization theory. It stated that
rich resources “flow from the periphery of poor and underdeveloped states to a core of wealthy states
enriching the latter at the expense of the former” (Emeh 2013). Dependency theory sees globalization
as nothing but the expansion of market capitalism that exploited the resources and cheap labor of the
poorer economies in return for the outdated Western technologies. The theory originated from the
works of Hans Singer and Raul Prebisch in 1949 in their seminal work published in the same year
(Aharoni 2014). The Prebisch-Singer Thesis was developed which established that the terms of trade
between the developed and underdeveloped countries was extremely unequal. They found that the
developed countries had to buy finished goods from the developed countries in rates that were higher

3MODERNIZATION AND DEPENDENCY THEORY-COMPARING AND
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than the raw materials exported to make those products. The Dependency theorists advocated for an
“inward looking” approach towards development where they emphasized on the increased role of the
state. According to them, the states must impose barriers to trade making it difficult for the
development nations invest inwardly. This would ensure that industries in developing societies are
nationalized thus prohibiting developed nations to exploit the resources. However, this theory also is
not devoid of criticisms as many scholars have rejected it stating that such an approach would end
competition, which is harmful for a country’s growth.
Modernization and Dependency theory both have certain similarities, which shall be discussed
in this section. The first similarity is that both the theories pay attention to the existing gap between
developed and developing nations. (Miralles 2015) while pointing out the similarities between the two
theories state that both the theories have made the Western dominance over the Orient and African as
the ground from which modernization and development can be observed. It needs mentioning that both
the theories see the West as the world leader when it comes to development and that other nations
should either follow them or prohibit them.
According to Andrews and Bawa (2014), “modernization and dependency both give valid and
just explanations for development and underdevelopment”. Modernization theory based itself on four
main assumptions. The first assumption is that the Western societies are the most advanced and
developed when it comes to technology, society, economy and politics. The second assumption states
the Western countries follow a systematic path to become advanced; third assumption is that
developing nations especially of the East follow natural path of development, which is filled with
obstructions. The fourth and last assumption is that the underdeveloped nations can develop without
even disturbing the developed nations, which is not the same with developed worlds. The Dependency
theory although does not make such assumptions, stresses on the dominance of the Western world.