Modernisation is a process of social, economic and cultural transformation in which a country "evolves" from pre-industrial to a modern society. Countries follow a series of 5 stages of development that all countries have to follow. The traditional society, Pre-conditions for take off, Take off, The drive to maturity and High mass consumption. A country is considered modern if people have political, economical and social freedom and if they have high literacy rates.

Dependency is a result of the failure of the modernization theory to address the underdevelopment of the third world countries. They are focused on the origins and subsequent development of underdevelopment.