Modernization Theory
The first classical economic development theory that emerged from the ruins of World War II was the modernization theory. This theory emerged in the throes of the Cold War and the politics of decolonization. The theory derived its inspiration from the assumption “that the western model provided the underdeveloped countries with the shortest route to economic progress.
Modernisation Theory emerged in the late 1950s when it appeared as a North American political scientists’ reaction to the incipient failure of many of the prescriptions of development economists. While Modernisation Theory stresses the importance of political development in the progress and climactic improvement of a nations’ economic standing, it also acknowledges social and cultural reforms. It should be added also that Modernisation Theory is completely different from development economics, which is the first or basic model of development theory. Modernisation is appropriate for political development, but also can be used for any liberal theories of modernisation that appeared after 1945 targeting the nation-states of the Third World. Consequently, the focal point of Modernisation Theory is on political development with levels of coverage that consider history, sociology, political sciences in general, and area studies.
It is a commonly held idea that the reason for the emergence of Modernisation Theory was the freedom of Third World countries from colonization and the strategies employed during the Cold War by Western countries in order to prevent these countries from being controlled by communists.
Haque refers to what Preston explicitly states about this issue, pointing out that the U.S. presents Modernisation as an attack on the former USSR’s widespread socialistic belief. Thus, Modernisation Theory is a by-product of a political reaction against the communist ideology.
Modernisation Theory has been defined as a theory that uses a systematic process to move underdeveloped countries to a more sophisticated level of development. It is a US and European-centric normative model of development. The focus of Modernisation Theory is cultural change directed at institutional structures in non-industrialized countries.
Modernisation Theory explains inequality within or between states by identifying different values, systems and ideas held by different nation states.
Modernization theory locates the persistent crisis of development within the domestic political patters of developing countries. Modernization perspective points to the facts that the developing countries cannot develop not because of external constraints per se, but because of high degree of corruption, indolence, gross economic mismanagement, lack of vision, poor implementation and monitoring of policies and governmental instabilities.
Modernisation Theory treats development as a phased process. Reyes (2001, p. 2) referred to Rostow’s (1962) five identified stages, which give shape to the Modernisation Theory of development:
• The traditional society
• Preconditions for take-off;
• Take-off;
• The road to maturity
• The age of mass consumption.
Traditional society was famous for a limited range of production. Such a society suffered from And a false understanding of environmental capabilities and from a shortage of technology and advanced tools that produced a limitation in production. It represented a biased social classification pattern with the political point of focus on a specific region (Rostow 1962, p. 311).
The first steps for advancement from traditional society in Europe stemmed from two important happenings that occurred after the Middle Ages: the development of modern science and ideologies and the subsequent land discoveries that led to the increase in trade, and the competitive struggles to avoid becoming European territories (Rostow 1962, p. 312).
These are considered to represent the preconditions for take-off.
The take-off stage starts from the rise of new industries with the application of new industrial techniques, for example, the growth of cotton textiles, timber cutting and the railroad industry (Rostow 1962, p. 317). The road to maturity stage involves the widespread application of technology in its full range. This phase is actually the time of expansion in which some new fields developed into rivals of older sectors (Rostow 1962, p. 318).
As a society recognises its need for greater security, welfare and leisure to its labouring forces, it moves into on age of mass consumption. This leads to the provision of extensive private consumption like durable goods, and an extension of power internationally for the nation (Rostow 1962, p. 323).
Guilhot (2005, p. 120) recognized that as a country moved to the age of mass consumption, it sought development aid and foreign support. Along with this support came expectations of democratization on the part of the developed countries providing aid. This relatively conservative understanding emanated from a hegemonic U.S. belief in the rights of human beings.
To overcome barriers to development, modernization theorist recommended that the Advanced Industrialized countries should provide various missing components of development such as investment capital through foreign aid or private foreign direct investment to the Less Developed Countries
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