Dependency theory vs modernization theory

What are the causes for the under development of the 3rd world nations: This
concept can be explained by modernization and dependency theory.

Dependency theory is the notion that resources flow from a "periphery" of poor and
underdeveloped states to a "core" of wealthy states, enriching the latter at the expense
of the former.

There are many theories on how nations develop. This lesson will explore the origins, developments,
and claims of several versions of modernization theory.

What Is Modernization Theory

Modernization theory is a theory used to explain the process of modernization that a nation goes
through as it transitions from a traditional society to a modern one. The theory has not been
attributed to any one person; instead, its development has been linked to American social scientists
in the 1950s.
There are many different versions of modernization theory. This lesson will discuss the opposing
views of the Marxist and capitalist versions, a Western version, and a present-day version of
modernization theory.

Marxist Versus Capitalist

Early theories were greatly affected by the political climate between the United States and the Soviet
Union. During the Cold War era (1947-1991), two versions of modernization theory were prominent.

Marxist
The Marxist theory of modernization theorized that as nations developed, adopting a communist
approach to governing, such as eradicating private property, would end conflict, exploitation, and
inequality. Economic development and social change would lead developing nations to develop into
a society much like that of the Soviet Union.

Capitalist
The capitalist version of modernization theorized that as nations developed, economic
development and social change would lead to democracy. Many modernization theorists of the time,
such as W. W. Rostow, argued that when societies transitioned from traditional societies to modern
societies, they would follow a similar path. They further theorized that each developing country could
be placed into a category or stage of development. Rostow's stages of development are:

Traditional - an agricultural-based society

Pre-conditions for take-off - characterized by an abundance of entrepreneurial activity
Take-off - a period of rapid economic growth
Maturation - economic development slows to a more consistent rate
Mass production or mass consumption - a period in which real income increases
Other modernization theorists, such as Samuel Huntington, argued that social mobilization and
economic development were driving forces behind modernization. Increased social
mobilization meant that individuals and societal groups changed their aspirations.
Increased economic development meant the capabilities of the newly modern society would
change. Huntington argued that these societal changes would inevitably lead to democratization.
Although the Marxist and capitalist versions of modernization held opposing views, both views held
that in order for developing countries to modernize the countries needed assistance in economic
development and social change.
Communism was deteriorating by the 1970s and democratization had failed to occur in many nations
struggling to develop. Many critics declared that the Marxist and capitalist versions of modernization
were void.

Western Version
Another popular version of modernization formed during the height of the Cold War. It theorized that
underdeveloped nations were underdeveloped because they were a product of unsound
traditionalist,