Modernisation Theory 

Reyes (2001) defines modernisation theory as a theory that uses a systemic method to bring underdeveloped countries to a higher level of growth. The emphasis of Modernisation Theory is cultural change aimed at non-industrialized countries' institutional structures. Although Modernisation Theory emphasizes the role of democratic change in the advancement and climactic improvement of a country's economic status, it also recognizes the importance of social and cultural reforms. It's also worth noting that Modernisation Theory is not the same as development economics, which is the first or fundamental model of development theory.  Modernisation is suitable for political advancement, but it can also be applied to any liberal modernisation ideas that emerged after 1945 and targeted Third World nation-states (Berger 2004). As a result, Modernisation Theory focuses on political change at various levels, including history, sociology, political science in general, and area studies Traditional culture was known for having a narrow selection of products. Such a society was hampered by a misunderstanding of environmental capabilities, as well as a scarcity of technology and specialized equipment, which limited development. It reflected a skewed social classification system with a political emphasis on a single region.  A society enters the era of mass consumption as it recognizes the need for greater protection, welfare, and leisure for its labor force. This results in the provision of extensive private consumption, such as durable goods, as well as a strengthening of the nation's foreign influence.

Dependency Theory 

Dependency Theory (Reyes, 2001) has been proposed as a growth theory that complements Modernisation Theory. It adopts a "revolution of underdeveloped nations paradigm" and incorporates concepts from neo-Marxist theory. The totality of society and social structure periphery are the subject of this theory, which emphasizes the disparities between imperialistic countries in the first world and underdeveloped countries. There are many schools of thought about the relationship between developed and developing countries within Dependency Theory. Between classical Marxist theory and radical Dependency Theory, there are a few main distinctionsThe lack of equity in the “exchange” relationship between the Third World and capitalist countries, for example, is the cause of First World surplus, according to radical Dependency Theory.  This is in direct opposition to what traditional Marxism holds. The root of surplus is thought to be in the capital-labor relation that occurs in "output" itself, according to classical Marxist theory. The major source of assessment is also a point of contention between the two theories. The capitalist mode of production is the only mode of production that Dependency Theory considers. Although the structure of development and underdevelopment in Marxist theory is complex and active, the structure of development and underdevelopment in Dependency Theory is passive and monotonous. While Marxist theory emphasizes capitalist intervention's progressive position in Third World countries, Dependency Theory sees it as the primary cause of their underdevelopment. Dependency Theory differs from Marxist theory in terms of many of these opposing characteristics. Dependency Theory is a school of thought that arose in response to Latin America's dissatisfaction that the commercial benefits promised by neoclassical theory had not materialized. According to this theory, the capitalistic world's economy induces labor unrest, which harms the domestic economies of developing countries. It lowers the rate of economic growth and leads to greater income inequality. It also has a negative impact on the majority of people's well-being. Furthermore, since there is no fundamental equality in the processed products and traded raw materials, the implementation of trade dependence has increasingly divided major and minor countries. This has also resulted in a relatively long-term drop in the price of primary products in comparison to refined goods.