Modernisation Theory

Overview of modernisation theory

The two key aspects of modernisation theory are in relation to:

• Explaining why economically 'backwards' countries are poor

• Providing a way out of underdevelopment.

However, while it focuses on cultural barriers, some modernisation theorists, such as Jeffery Sachs (2005), consider economic barriers to development.

The central argument of modernisation theory is that developing countries need to follow the same path as the West in order to develop. They must adapt to Western cultures and values and industrialise their economies. However, these countries would require support from the West - through their governments and companies - to do so.

Relevance of modernisation theory to developing countries

By the end of WWII, many countries in Asia, Africa, and South America failed to develop and remained economically weak, despite developing capitalist structures.

Leaders of developed nations and regions like the US and Europe were concerned about communism spreading in these developing countries, as that could potentially harm Western business interests. In this context, modernisation theory was created.

It provided a non-communist means to break out of poverty in developing countries, specifically spreading an industrialised, capitalist system of development based on Western ideologies.

The need for a capitalist-industrial model for development

Modernisation theory favours an industrial model of development, where large-scale production is encouraged to take place in factories instead of small workshops or in-house. For example, car plants or conveyor belts should be utilised.

In this scenario, private money is invested in producing goods for sale to generate profit, not for personal consumption.

Fig. 1 - Modernisation theorists believe that financial investment is necessary to generate profit or growth.

The modernisation theory of development

Modernisation theorists suggest that the obstacles to development lie deep within developing countries' cultural values and social systems. These value systems prevent them from growing internally.

According to Talcott Parsons, underdeveloped countries are too attached to traditional practices, customs, and rituals. Parsons claimed that these traditional values were the ‘enemy of progress’. He was mainly critical of the kinship ties and tribal practices in traditional societies, which, according to him, hindered a country’s development.

Cultural barriers to development

Parsons addressed the following traditional values of developing countries in Asia, Africa, and America that, in his view, act as barriers to development:

Particularism as a barrier to development

Individuals are assigned titles or roles out of their personal or familial ties with those already in powerful positions.

Collectivism as a barrier to development

People are expected to put the interests of the group ahead of themselves. This can lead to scenarios where children are expected to quit school at a young age to take care of parents or grandparents rather than continue pursuing education.

Patriarchy as a barrier to development

Patriarchal structures are ingrained in many developing countries, which means that women remain restricted to traditional household roles and rarely gain any powerful political or economic positions.

Ascribed status and fatalism as a barrier to development

An individual’s social standing is often determined at birth - based on caste, gender, or ethnic group. For instance, caste consciousness in India, slave systems, etc.

Fatalism, a feeling that nothing can be done to change the situation, is a possible outcome of this.

Values and cultures of the West

In comparison, Parsons argued in favour of Western values and cultures, which he believed promoted growth and competition. These include:

Individualism

As opposed to collectivism, people put their self-interests ahead of their family, clan, or ethnic group. This enables individuals to focus on self-improvement and grow in life using their skills and talents.

Universalism

In contrast to particularism, universalism judges everyone according to the same standards, with no bias. People are not judged based on their relations to anyone but on their talent.

Achieved status and meritocracy

Individuals achieve success based on their own efforts and merit. Theoretically, in a meritocratic society, those who work hardest and are the most talented will be rewarded with success, power, and status. It is technically possible for anyone to occupy the most powerful positions in society, such as the head of a large corporation or a country leader.

Stages of modernisation theory

Though there are numerous debates on the most productive way to aid developing countries, there is agreement on one point - if these nations are helped with money and Western expertise, traditional or ‘backwards’ cultural barriers can be knocked down and lead to economic growth.

One of the most prominent modernisation theorists was Walt Whitman Rostow (1960). He proposed five stages through which countries must pass to become developed.

The first stage of modernisation: traditional societies

Initially, the local economy in 'traditional societies' remains dominated by subsistence agricultural production. Such societies don’t have sufficient wealth to invest in or access modern industry and advanced technology.

Rostow suggests that cultural barriers persist during this phase and lays out the following processes to combat them.

The second stage of modernisation: the preconditions for take-off

In this stage, Western practices are brought in to set up investment conditions, bring more companies into developing countries, etc. These include:

• Science and technology – to improve agricultural practices

• Infrastructure – to improve the condition of roads and city communications

• Industry – setting up factories for large-scale production

The third stage of modernisation: the take-off stage

During this next phase, advanced modern techniques become norms of society, driving economic development. With the reinvestment of profits, an urbanised, entrepreneurial class emerges, leading the country towards progress. Society has become willing to take more risks and invest beyond subsistence production.

When the country can consume new products by importing and exporting goods, it generates more wealth that eventually gets distributed to the entire population.

The fourth stage of modernisation: the drive to maturity

With increased economic growth and investment in other areas — media, education, population control, etc. — society becomes aware of potential opportunities and strives toward making the most out of them.

This stage occurs for an extended period of time, as industrialisation is fully implemented, living standards rise with investment in education and health, the use of technology increases, and the national economy grows and diversifies.

The fifth stage of modernisation: the age of high mass consumption

This is the final and - Rostow believed - the ultimate stage: development. A country's economy flourishes in a capitalist market, marked by mass production and consumerism. Western countries such as the U.S.A. are currently occupying this stage.

Fig. 2 - New York City in the USA is an example of an economy based on mass consumerism.

Examples of modernisation theory

This brief section takes a look at some examples of the implementation of modernisation theory in the real world.

• Indonesia partially followed modernisation theory by encouraging Western organisations to invest and accepting financial aid in the form of loans from the World Bank in the 1960s.

• The Green Revolution: when India and Mexico received help through Western biotechnology.

• The eradication of smallpox with the help of vaccine donations from Russia and the USA.

Criticisms of modernisation theory in sociology

• There is no example showcasing a country's experience of undergoing all the stages of development specified above. Modernisation theory is structured in a way that justifies the dominance of Western capitalist countries during the colonial period.

• The theory assumes that the West is superior to the non-West. It implies that Western culture and practices have greater value than traditional values and practices in other regions.

• Developed countries are not perfect - they have a range of inequalities that give rise to poverty, inequality, mental and physical health issues, increased crime rates, drug abuse, etc.

• Dependency theorists argue that Western development theories are actually concerned with changing societies to make dominance and exploitation easier. They believe capitalist development aims to generate more wealth and extract cheap raw materials and labour from developing countries to benefit developed nations.

• Neoliberals criticise modernisation theory and stress how corrupt elites or even government officials can obstruct financial aid from actually helping the economic growth of developing countries. This also creates more inequality and helps the elite to exercise power and control dependent countries. Neoliberalism also believes that obstacles to development are internal to the country and that the focus should be on economic policies and institutions rather than cultural values and practices.

• Post-development thinkers believe that the primary weakness of modernisation theory is assuming that outside forces are needed to help a country develop. For them, this negatively affects local practices, initiatives, and beliefs; and is a demeaning approach toward local populations.

• Eduardo Galeano (1992) explains that, in the process of colonisation, the mind also becomes colonised with the belief that it is dependent on outside forces. Colonising powers condition developing nations and their citizens to be incapable and then offer ‘aid’. He argues for alternative means of development, citing, for example, Communist Cuba.

• Some argue that industrialisation causes more harm than good. Projects like the development of dams have led to the displacement of local populations, who are removed forcibly from their homes with insufficient or no compensation.

Neo-modernisation theory

Despite its drawbacks, modernisation theory remains an influential theory in terms of its impact on international affairs. The essence of the theory gave rise to organisations such as the United Nations, World Bank, etc. that continue to aid and support less developed countries. It must be noted, though, that there is a debate on whether this is the best practice to ensure development.

Jeffrey Sachs, a ‘neo-modernisation theorist’, suggests that development is a ladder and that there are people who cannot climb it. This is because they lack the type of capital needed for it e.g. good health, education, knowledge, savings, etc. which the West takes for granted. Sachs argues that these people are deprived and need specific aid from the West to develop.

According to Sachs (2005) there are a billion people who are practically trapped in cycles of deprivation - 'development traps' - and need aid injections from the developed countries in the West to develop. In 2000, Sachs calculated the amount of money required to fight and eradicate poverty, finding that it would need 0.7% of the GNP of about 30 of the most developed nations for the upcoming decades.¹