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Modernisation Theory Essay

667 words - 3 pages

MODERNISATION THEORY

The world is unequal and there may be various reasons as to why some countries face severe poverty while others are well off. We can think of a number of reasons why there is poverty in some countries; it could be lack of resources, war or even natural disasters. This theory basically tries to explain this poverty; and that it is caused by the lack of modernising, or the lack of necessary infrastructure and technology to push the country to the modern era. Rostow defines 5 stages of the modernisation theory;

• Traditional stage
The society’s economy is largely dependent on agricultural produces. Their income is usually dissipated in non productive activities. ...view middle of the document...

This stage is also driven largely by technology. Since the countries are no more in the traditional stage, their way of life becomes more technological. This clearly shows growth.
There is investment in education. The growth of education begins here; this is to ensure the growth of the economy does not come to an end at a particular generation. Savings are up to 10 %, which brings about further investment. This stage takes about two to three decades (10-20 years).

• Drive to maturity
In the fourth stage of modernisation there is great technological innovation. The Technology sector dominates this stage. There is further investment, but heavy investment goes to technology which takes about 10-20 % of the national income. There is more income generating activities. More wealth brings about more investment. Modern technology is extended over any other sector of the economy.
Importing of goods reduces drastically, since the goods that were being imported are now produced locally. This also...

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