Modernization Theory and Classical Dependency Theory

Modernization theory is the process of transforming from a traditional or underdeveloped society to a modern Western societies way of life. Basically, Modernization theory became the foundation stone of this evolutionary prescription for development. The theory is not homogeneous—numerous proponents disagreed on several key features. But in broad outline, the theory focused on deficiencies in the poorer countries and speculated about ways to overcome these deficiencies. It viewed traditional society as a series of negatives: stagnant and unchanging, not innovative, not profit-making, not progressing, not growing.
Modernization is the economic growth within societies and the third world did not undergo these economic or political transformations; it was ‘left behind’. So the task of the Third World is to transform itself from tradition to modernity. That is, to follow the footsteps of the Western world. In fact, because the path is now charted, these countries can avoid the mistakes made by the West.
On the other hand, Dependency is also not a homogeneous, unified theory—serious analytical differences persist within the school. Economic growth in advanced countries created Third World poverty in its wake: not simply that the Third World is poor in comparison with the industrialised world; rather that it is poor because development of the industrial system in Western Europe and North America changed and impoverished many societies of Asia, Africa and Latin America, through colonialism, imperialism and extractive terms of trade. When capitalism began to spread, the ceaseless search for profit began: through the production of agricultural goods in colonies or other lands, and Western Europe’s ability to drive unequal bargains. This fundamentally changed the social structures of the Third World.
The term dependency comes from this link: Some say the exploitation of various regions for their raw materials and labour impoverished them and made them depend on the