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‘Modernisation theory provides the best explanation of global inequality.’ Evaluate this view

CAMBRIDGE

A level and AS level

2022

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Introduction

This essay will evaluate the claim that modernisation theory provides the best explanation of global inequality. It will explore the key tenets of modernisation theory and its strengths and weaknesses in explaining global disparities in wealth and income.

Arguments in Favor of Modernisation Theory

Cultural Factors and Economic Development

Modernisation theory asserts that cultural values, such as entrepreneurship, meritocracy, and individual freedom, are crucial for economic success. It argues that countries adopting these values and emulating Western development models can overcome poverty.

Critique of Marxist Theories

Modernisation theorists criticize dependency theory and world systems theory for their economic reductionism. They argue that these theories overlook the significance of cultural factors in perpetuating inequality.

Explaining Different Development Trajectories

Modernisation theory offers a framework for understanding why some developing countries have achieved higher levels of economic growth than others. Marxist theories struggle to explain such variations.

Historical Evidence and Cultural Influence

Historical studies suggest a strong influence of cultural factors in the economic rise of Western societies during the Industrial Revolution. This implies a potential role for cultural factors in developing countries today.

Examples of Successful Development

Some developing countries, like Singapore, South Korea, and the UAE, have successfully adopted certain cultural changes advocated by modernisation theory, demonstrating its potential effectiveness.

Arguments Against Modernisation Theory

Dependency Theory and Structural Inequality

Dependency theory rejects the focus on cultural factors, arguing that the unequal structural relationship between rich and poor countries is the primary driver of global inequality. It emphasizes exploitation and dependency rather than cultural deficiencies.

Colonialism and Neocolonialism

Modernisation theory ignores the detrimental impact of colonialism and neocolonialism on developing economies. Western powers have historically exploited these countries, hindering their economic progress.

Limited Effectiveness of Development Aid

The lack of significant progress in poverty reduction despite efforts from richer countries suggests a deliberate strategy of maintaining inequality. This raises questions about the sincerity of Western efforts to help developing countries.

Exploitative Role of Transnational Corporations (TNCs)

Modernisation theory fails to acknowledge the exploitative practices of TNCs operating in developing countries. TNCs benefit from cheap labor, resources, and markets, perpetuating inequality and poverty.

World Systems Theory and Global Capitalism

Immanuel Wallerstein's world systems theory argues that global capitalism reinforces inequality by relegating poorer countries to low-skill, labor-intensive production, while richer countries focus on high-skill, capital-intensive activities.

Conclusion

Modernisation theory provides a partial explanation for global inequality, but it overlooks the profound influence of historical and structural factors. While cultural values may play a role, they cannot solely account for the persistent disparities between rich and poor countries. Dependency theory, with its emphasis on exploitation and unequal power dynamics, offers a more comprehensive understanding of global inequality.

Modernisation Theory and Global Inequality

The stark disparity in wealth and income between rich and poor countries, termed global inequality, demands explanation. Modernisation theory offers one such explanation, attributing this disparity primarily to cultural factors. It posits that for impoverished nations to prosper, they must embrace the values and institutions characteristic of successful capitalist, liberal democracies, primarily in the West. This essay will critically evaluate the strengths and weaknesses of modernisation theory in explaining global inequality.

Arguments in Favour of Modernisation Theory

Cultural Values as Drivers of Development: Modernisation theorists champion values such as democracy, entrepreneurship, individual freedom, and meritocracy as crucial for economic success. They argue that by adopting these values and emulating the developmental trajectory of Western societies, poorer countries can break free from poverty. For instance, the economic success stories of South Korea and Singapore, both of which transitioned from poverty to affluence, are often cited as examples of successful modernisation.

Limitations of Marxist Perspectives: Modernisation theory challenges Marxist perspectives like dependency theory and world systems theory, accusing them of economic reductionism. It argues that these theories overemphasize economic factors and neglect the significant role of culture in perpetuating global inequality. While Marxist theories struggle to explain why some developing countries outperform others, modernisation theory provides a framework for understanding these disparities by highlighting cultural differences.

Historical Evidence: The historical experience of Western societies during the industrial revolution lends credence to modernisation theory. Cultural factors, including the Protestant work ethic and the rise of individualism, played a pivotal role in propelling economic growth in these societies. Modernisation theorists argue that similar cultural shifts can contribute to economic development in the developing world today.

Arguments Against Modernisation Theory

Structural Inequality and Exploitation: Dependency theory offers a compelling counter-argument, emphasizing the deeply ingrained structural inequalities between rich and poor countries. It argues that the historical legacy of colonialism and the ongoing practices of neocolonialism have created a system where the economies of developing countries are systematically disadvantaged. The relentless pursuit of profit by Western nations and transnational corporations (TNCs) perpetuates this exploitative relationship, hindering the economic progress of developing countries.

The Role of TNCs: Modernisation theory's benign view of TNCs operating in developing countries is heavily criticized. Critics posit that these corporations exploit the cheap labor, readily available resources, and lax regulations in these countries for their own gain, exacerbating global inequalities. The profits often flow back to the TNCs' home countries, leaving the developing nations trapped in a cycle of low-wage production and dependency.

Wallerstein's World Systems Theory: Immanuel Wallerstein's world systems theory further challenges modernisation theory. It argues that the capitalist system inherently creates a global division of labor, with rich countries specializing in high-skill, capital-intensive production and poorer countries relegated to low-skill, labor-intensive production and raw material extraction. This division perpetuates the dominance of rich countries and traps workers in developing nations in insecure, low-wage jobs.

Conclusion

While modernisation theory offers valuable insights into the role of culture in economic development, its limitations are undeniable. Its oversimplification of complex historical and structural factors, its failure to adequately address the exploitative nature of global economic relations, and its overly optimistic view of TNCs undermine its explanatory power. A comprehensive understanding of global inequality necessitates a nuanced approach that acknowledges the interplay of cultural, economic, and political forces. While cultural change may play a part in development, it cannot occur in isolation from addressing the deeply entrenched structural inequalities that continue to disadvantage developing countries.

‘Modernisation theory provides the best explanation of global inequality.’ Evaluate this view

Free Mark Scheme Extracts

Modernisation theory provides the best explanation of global inequality.’ Evaluate this view.

The question invites candidates to consider the reasons for the disparity between income and wealth between rich countries and poorer countries today, otherwise known as global inequality. There are a number of theories that seek to explain global inequality, one of which is modernisation theory.

Modernisation theory identifies cultural factors as the main reason why some countries remain poor. The solution to global inequality, in this view, requires poor countries to adopt the institutional arrangements and values associated with capitalist, liberal democratic societies in the West.

In addition to demonstrating knowledge of modernisation theory, good answers will also evaluate that theory by considering, for example, alternative explanations for global inequality. Contrasts are likely to be drawn between modernisation theory and dependency theory/world systems theory. Examples of development in particular societies might be used to help illustrate key strengths and limitations of modernisation theory.

Indicative content

For:

- Modernisation theorists argue that certain cultural values are essential for successful economic development in poorer countries, including the values of democracy, entrepreneurship, individual freedom, and meritocracy. Countries that adopt these values and follow the model of development that proved successful in Western societies can escape poverty through their own efforts.

- Modernisation theorists argue that Marxist theories of development (Dependency Theory and Wallerstein’s World Systems Theory) are guilty of economic reductionism in arguing that poorer countries are trapped in a position of exploitation and inequality by the logic of capitalism. Cultural factors are attributed little value in explaining the causes of global inequality in these Marxist theories and modernisation theorists see this as an oversight.

- Cultural explanations of global inequality provide a framework for understanding why some developing countries have achieved higher levels of economic growth than others. Marxist theories, by contrast, struggle to explain these differences.

- Historical studies suggest that cultural factors played an important part in the process through which Western societies became wealthy at the time of the industrial revolution. It seems likely therefore that cultural factors could also contribute to economic growth in developing countries today.

- There is some evidence that the most successful countries economically in the developing world have made a concerted effort to adopt some or all of the cultural changes advocated by modernisation theorists. Examples include Singapore, South Korea, and the UAE.

Against:

- Dependency theory rejects the emphasis on cultural factors in the explanation of global inequality advanced in modernisation theory. Dependency theorists argue that inequalities in the structural relationship between rich countries and poorer countries explain why many poorer countries have found it so difficult to develop their economies successfully.

- Modernisation theory overlooks the damage caused to the economies of developing societies by Western nation-states seeking to control those countries through policies associated with colonialism and neocolonialism.

- The interest that richer countries have in keeping poorer countries less developed provides a context for understanding why efforts by Western powers to help poorer countries escape poverty have seemed so limited and ineffective.

- Modernisation theory has too benign a view of the role of TNCs in developing countries. Critics argue that the advantages that TNCs gain from access to markets, resources, and labor supply of poorer countries are clear to see and revolve around the ability to make profits relatively easily through the relative ease with which these markets and workers can be exploited.

- Immanuel Wallerstein in his world systems theory argues that the capitalist economic system is becoming increasingly global in its search for profit. In turn, this is leading to rich countries increasingly focusing on higher skill, capital-intensive production, and the rest of the world focusing on low-skill, labor-intensive production and extraction of raw materials. This constantly reinforces the dominance of rich countries and condemns workers in poorer countries to a life of exploitative, insecure low-wage employment.

(Source: Cambridge International AS & A Level – Mark Scheme, February/March 2022)

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