Question

Compare and contrast modernization theory and dependency theory. Which do you think is more useful for explaining global inequality? Explain, using examples.

Answer 1

The basic difference between modernization theory and dependency theory is that, modernization theory explains the inequality on the basis of conscious, collective and voluntary actions of the developed countries that led these to be advanced economically, socially and technologically. The socio-economic and political institutions of these countries worked collaboratively for the advancements of these,thus, these countries were able to achieve development and progress. Whereas, those countries that lacked such collaborating, conscious and voluntary efforts by the institutions of their society remained backward and underdeveloped.

The dependency theory explains inequality on the basis of exploitation. That is the developed countries use the resources of the underdeveloped countries for their development and advancements. These developed countries excercise power to influence the trade and economic policies at international level. Thus, they make sure that the flow of resources is towards their countries.

From the two theories, one emphasizes the importance of the technological advancements and collaborative efforts of the institutions of the society, while, the other explains exploitation as the reason for development and inequality. It is important that there should be a collective effort for the advancement of a countries, and those countries that have achieved the development usually exploit the " peripheral countries" from which they obtain the resources. For example, the policies for international trade regulations are influenced by the G8 nations, the most developed nations of the world. Similarly, most of the multinational companies,that mainly belongs to these nations use the resources of the developing nations to the utmost, with least contribution to their development. Thus, dependency theory is more useful in explaining global inequality.