Since the early 19th centuries until now, there are many improvements in economic happened in Latin America. In the study of Latin America, the dependency theory and the modernization theory are one of the most significant theories that helps us analyze and understanding the traditional stages of Latin America. However, this paper will be focusing on the principal differences between the modernization theory and the dependency theory. Plus, it will also show how each of these theories affected the economic development of Latin America. There are many processes for each country to go through to step from the traditional society to a modernized state. As I mentioned earlier that there are two theories that plays an important role in the Latin
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Moreover, Rostow’s outline the five stages of growth for a country to become a modernized state; the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption (Rostow 1). In contrast, Franko and Klaren have a different point of view, by stated that “underdeveloped countries were not developed countries in the making; rather, industrial countries caused underdevelopment in other nation in the process of economic expansion” (Franko 4). Based on the reading, there are a couple of differences between the modernization theory and the dependency theory. Before taking into account, to compare how each country are growing, we will have to look at how they do in international market. Referring to the modernization theory, Latin America is considered as a third world because of its lack of the technology advancement and the limited production function (Rostow 4). And in order for the Third world (Latin America) to catch up with the industrialized country (First World), Rostow offered 5 stages for Latin America to …show more content…
The first stage is the traditional society. Rostow mentioned that the problem of the third world country is not only the limited production functions, but also the lack of understanding of their own physical environment (Rostow 4). The second stage is the preconditions for take-off. This stage is involved in the Western Europe aid (Rostow 4). Then, the take-off stage. At this stage, the modern industrial techniques applied (Rostow 7), while the old one gets abandoned. The fourth, the drive to maturity stage. At this stage, the country will be interacting in the international market (Rostow 8). And last, the age of high mass consumption is taking place when a third world country completely abandoned their old-fashioned stage. In short, a third world (Latin America) should follow the 5 stages that Rostow outlined to catch up with the first world.
However, the dependency theory has a different perspective and offered a different outcome from the modernization theory. The dependency theory believed that the richer country has a benefit on the access to the resources (inputs). In the reading, Frank mentioned that there was an unequal economic relations between the rich and poor, by saying that “Rich countries became rich by making other countries poor” (Franko 4). That is to say, the wealthy country will be wealthier, while the stagnation country remains the same
Moreover, Rostow’s outline the five stages of growth for a country to become a modernized state; the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption (Rostow 1). In contrast, Franko and Klaren have a different point of view, by stated that “underdeveloped countries were not developed countries in the making; rather, industrial countries caused underdevelopment in other nation in the process of economic expansion” (Franko 4). Based on the reading, there are a couple of differences between the modernization theory and the dependency theory. Before taking into account, to compare how each country are growing, we will have to look at how they do in international market. Referring to the modernization theory, Latin America is considered as a third world because of its lack of the technology advancement and the limited production function (Rostow 4). And in order for the Third world (Latin America) to catch up with the industrialized country (First World), Rostow offered 5 stages for Latin America to …show more content…
The first stage is the traditional society. Rostow mentioned that the problem of the third world country is not only the limited production functions, but also the lack of understanding of their own physical environment (Rostow 4). The second stage is the preconditions for take-off. This stage is involved in the Western Europe aid (Rostow 4). Then, the take-off stage. At this stage, the modern industrial techniques applied (Rostow 7), while the old one gets abandoned. The fourth, the drive to maturity stage. At this stage, the country will be interacting in the international market (Rostow 8). And last, the age of high mass consumption is taking place when a third world country completely abandoned their old-fashioned stage. In short, a third world (Latin America) should follow the 5 stages that Rostow outlined to catch up with the first world.
However, the dependency theory has a different perspective and offered a different outcome from the modernization theory. The dependency theory believed that the richer country has a benefit on the access to the resources (inputs). In the reading, Frank mentioned that there was an unequal economic relations between the rich and poor, by saying that “Rich countries became rich by making other countries poor” (Franko 4). That is to say, the wealthy country will be wealthier, while the stagnation country remains the same