Question

Which of the following statements is the basis of modernization theory?

a. The main cause of poverty in the world is low productivity due to simple technology and traditional culture.
b. Poor nations can never become rich if they remain part of multinational corporations.
c. The main cause of poverty in the world is the operation of multinational corporations
d. Most poor nations were richer in the past than they are today.

Answer 1

Modernization theory posits that poverty in low-income countries is due to their lack of industrialization and traditional cultures leading to low productivity, and that economic advancement can be achieved through industrialization and technological improvements.

Step-by-step explanation:

The basis of modernization theory is the belief that the primary cause of poverty in low-income countries is their lack of industrialization and adherence to traditional cultures and simple technologies, which leads to low productivity. This theory suggests that these countries can advance economically through industrialization and improved technology, which are considered key to growth and development. In contrast, dependency theory argues that global inequality is largely due to the exploitation of peripheral and semi-peripheral nations by core nations, creating a cycle of dependence that hinders the economic growth of the exploited nations.

Therefore, the statement that best aligns with the basis of modernization theory is: 'The main cause of poverty in the world is low productivity due to simple technology and traditional culture.' This reflects modernization theory's focus on evolution through stages of economic growth, emphasizing industrialization and technological improvements as the solution to poverty.