Explain any two of these theories of Global Inequality: Modernization, State-Centered, Dependency, or World System Theory

Question

What will be an ideal response?

Answer 1

Modernization focuses on the conditions necessary for a low-income country to develop economically. He argued that a nation's poverty is largely due to the cultural failings of its people. They lack a "work ethic" that stresses thrift and hard work. They would rather consume today than in- vest in the future. Such failings are rein- forced by government policies that set wages, control prices, and generally interfere with the operation of the economy. They can develop economically only if they give up their "backward" way of life and adopt modern Western economic institutions, technologies, and cultural values that emphasize savings and productive investment.
State-Centered theories note that governments play a key role in bringing about economic development, for example, economies of East Asia, grew in conjunction with, and possibly because of, government intervention. The governments have acted to ensure economic stability by outlawing labor unions, jailing labor leaders, banning strikes, and repressing civil rights. They have been heavily involved in social programs such as low-cost housing and universal education.
Dependency theory focuses on the unequal relationship between wealthy countries and poor countries, arguing that poverty is the result of exploitation. Wealthy countries (and the multinational corporations based in them) try to acquire an ever-increasing share of the world's wealth by pursuing policies and practices that block the economic growth of the poor countries. Capitalist countries exploit worker countries, just as Karl Marx predicted, thereby ensuring that the rich get richer and the poor get poorer.
World System Theory focuses on the global economy as an international network dominated by capitalism. The theory posits that Europeans began the economic and political domination of the rest of the world. Because capitalism depends on generating the maximum profits for the minimum of expenditures, the world system continues to benefit rich countries (which acquire the profits) and harm the rest of the world (by minimizing local expenditures and therefore perpetuating poverty).