Modernization theory is a development theory which created by European Theorists in order to develop the economic growth of country to become wealthy country. Consequently, Western countries focused on two main purposes. The first is aiming at shifting traditional agriculture to modern industrial to increase value of productivity which leads the increasing national revenue. However, in order to move from traditional society to modern society, it has to pass Rostow’s five stage model and Lewis’s model (As cited in Shareia, 2015, p. 78). The second is promoting free trade to increase economic opportunities in all countries (As cited in Binns, 2014, p. 101).
Because of Modernization Theory, developed countries valued modern industry and technology …show more content…
101). As a result, the emergence of Modernization Theory stemmed from the desire of the Western countries in helping economics of the Third World in terms of shifting from traditional economy to become modern industrial economy which linked to the two broad phases of aid-giving. At first phase concerned with the reconstruction of countries in Europe after the Second World War and in this time the Marshall Plan was created and launched by the USA president. The purpose of Marshall Plan was providing financial support to the devastated economics and infrastructures of Western Europe. Practically, the USA injected US$ 17 billion mainly into United Kingdom, France, West Germany and Italy between 1948 and 1952, it was spread much confidence in the role of overseas economic aid. Moreover, the USA president requested richer countries to play the significant role in helping development of poorer countries and it related to the second phase of aid-giving which had many theorists from the First World concerned with the Third World and this was the starting point of Modernization Theory. However, the provision of aid-giving for Third World emerged the competition between the USA and USSR which led the conflicts of two sides, capitalism …show more content…
Consequently, the concentration of the USA was extended to the Third World. Because of the aid-donor completion between super-powers, the USSR theorists criticized the weaknesses of Modernization Theory (As cited in Binns, 2014, p. 103). Firstly, Modernization Theory encouraged equality but in the realistic situation this theory did not recognize inequality in its promotion. Basically, capitalism was successful in Western countries but it has been so hugely unsuccessful in other regions (As cited in McKay, 2016, p. 55). Moreover, the system of capitalism caused a labor disruption which damaged the domestic economies in underdeveloped countries. It reduced the economic growth rate and increased inequality of incomes and it also possessed a negative effect on the welfare of the majority of people. Furthermore, since there was inequality in the goods which involved with process and exchange of raw materials, all of the main and minor countries were separated by using trade dependency and this caused a relatively long-term reduction of the price of primary goods which compared with the price of processed (As cited in Shaeria, 2015, p. 81). Secondly, Modernization Theory valued modern approach but overlook values of
Because of Modernization Theory, developed countries valued modern industry and technology …show more content…
101). As a result, the emergence of Modernization Theory stemmed from the desire of the Western countries in helping economics of the Third World in terms of shifting from traditional economy to become modern industrial economy which linked to the two broad phases of aid-giving. At first phase concerned with the reconstruction of countries in Europe after the Second World War and in this time the Marshall Plan was created and launched by the USA president. The purpose of Marshall Plan was providing financial support to the devastated economics and infrastructures of Western Europe. Practically, the USA injected US$ 17 billion mainly into United Kingdom, France, West Germany and Italy between 1948 and 1952, it was spread much confidence in the role of overseas economic aid. Moreover, the USA president requested richer countries to play the significant role in helping development of poorer countries and it related to the second phase of aid-giving which had many theorists from the First World concerned with the Third World and this was the starting point of Modernization Theory. However, the provision of aid-giving for Third World emerged the competition between the USA and USSR which led the conflicts of two sides, capitalism …show more content…
Consequently, the concentration of the USA was extended to the Third World. Because of the aid-donor completion between super-powers, the USSR theorists criticized the weaknesses of Modernization Theory (As cited in Binns, 2014, p. 103). Firstly, Modernization Theory encouraged equality but in the realistic situation this theory did not recognize inequality in its promotion. Basically, capitalism was successful in Western countries but it has been so hugely unsuccessful in other regions (As cited in McKay, 2016, p. 55). Moreover, the system of capitalism caused a labor disruption which damaged the domestic economies in underdeveloped countries. It reduced the economic growth rate and increased inequality of incomes and it also possessed a negative effect on the welfare of the majority of people. Furthermore, since there was inequality in the goods which involved with process and exchange of raw materials, all of the main and minor countries were separated by using trade dependency and this caused a relatively long-term reduction of the price of primary goods which compared with the price of processed (As cited in Shaeria, 2015, p. 81). Secondly, Modernization Theory valued modern approach but overlook values of