Learning Activity 6 : Study unit 3 part 6

Contrasting views between the modernization and dependency theory.

The modernization theory is defined as a theory that utilizes systematic processes in order to shift underdeveloped countries to upper levels of development. On the other hand, the dependency theory is presented as a theory that improves the modernization theory and also incorporate elements involved within the neo-Marxist theory. According to Shareia(2015:79) the main focus of the modernization theory includes cultural change; political; implosion of western values and policies. Contrast to the dependency theory which focuses more on totality of society and social system periphery. The dependency theory explains the difference between imperialistic countries by concentrating on specific regions and structural conditions within different states, whilst, the modernization theory highlights the difference and inequality within states by identifying different values, systems and ideas practiced by different states. Moreover, this was implemented through the direction of institutional structures in non-industrialized countries according to a phased process. In addition, the positive and negative aspects of the modernization theory is that it involves modern technology, but yet disregards the concerns of developing countries, respectively. The dependency theory, in contrast to, the modernization theory accounts for the difference between developed and developing countries, as a positive feature of this theory. However, the failure lies in the fact that Western capitalist systems are viewed adversely, as inappropriate to publicly owned enterprises.

Comparison between the modernization and dependency theory.

Similarly, both theories focus on the development of Third World (LDC) conditions. The modernization and dependency theory correlate in respect of the use of methodology which affirms the development process and execute nation-state as a scope-unit of analysis. They both apply perspectives that follow a bilateral structured theoretical system, which involves the modern traditional system and also includes the minor-major dependency, respective to either theory. Furthermore, the role of accounting systems in developing countries is reliant on the guidelines proposed by the UN and World Bank.