Final answer:
Modernization theory suggests that poverty in low-income countries is due to low productivity from simple technologies and traditional cultures, which can be remedied through industrialization and modernization. Dependency theory counters this by highlighting exploitation by wealthier nations as the cause of global inequality, leading to a cycle of dependence. Both theories provide perspectives on the causes and solutions to poverty and development.
Step-by-step explanation:
Modernization theory is a sociological concept that serves as a lens to understand global inequality and development. It suggests that low-income countries suffer from a lack of industrialization and that their global economic standings could improve through modernization, which includes industrialization and the adoption of improved technology. According to this theory, the main cause of poverty is low productivity resulting from simple technologies and traditional cultures. In comparison, dependency theory criticizes modernization theory, arguing that global inequality is mainly caused by the exploitation of low-income countries by high-income nations, creating a cycle of dependence that prevents sustainable economic growth in poorer nations.
Modernization theory posits that countries go through evolutionary stages toward economic growth. It assumes that as labor shifts from agriculture to manufacturing, this change spurs income growth, which is epitomized in wealthy countries and is slowly taking place in low-income nations. The theory also presumes that a similar path to that of the developed countries can lead to economic development for all, ignoring the fact that this might perpetuate a Eurocentric and pro-capitalist viewpoint which may not consider the cultural differences and challenges unique to the developing world.
On the other hand, dependency theory, formed as a response to modernization theory, suggests that the relationship between wealthier core nations and less developed peripheral nations is exploitative. It points out that loans and economic policies imposed by high-income nations and institutions like the World Bank are often designed to benefit the core nations at the expense of the peripheral and semi-peripheral nations, thus solidifying economic dependency and hindering independent economic growth.
A critical flaw of modernization theory is the unwillingness to recognize its ethnocentric bias, which leads to the overlooking of the potential for non-Western forms of development and disregard for the value of preserving traditional cultures. In addressing poverty and underdevelopment, a balance needs to be sought that respects cultural identities while also fostering sustainable economic growth.