To what extent are theories of modernisation and dependency relevant in understanding the globalised economy?

Question

Rest of question- gloablised economy today?

This is an essay question. Bit stuck on whats important and should definitely be mentionned. Any ideas or help would be much appreciated

Thanks

Answer 1

Dependecy theory and modernization are held as important theories when discussing the globalized economy.  In fact, the two are polar opposites explaining how (why) states develop (or should develop) in particularly different ways.

Dependency theory states that there is a core and a periphery that the global economy revolves around.  The wealthier, industrialized nations are at the core.  They basically control the global economy and dictate changes or status quo through diplomacy, manipulation of IOs, and in part by MNCs.  These states would include the United States, Britain, France, Germany, possibly India, most of the First World nations.  The periphery are the outer-laying states that are bound to the international economy by the core states.  These states only focus their economies on the production of raw materials and resources.  We typically then see these resources shipped to Core states where they are manufactured.  States like these include most of the lesser developed states, African states, Indo-China, etc.  As it pertains to globalization, they feed off of one another.  The economic connectivity that is bred by globalization causes this situation between the core and the periphery.  If we did not have a globalized economy, the state would not have this type of system available, it simply could not work.  Dependency theory requires free-trade that is highly mobile and easily accessable by most nations.  

The polar opposite of this is Modernization theory.  This theory believes that individual states should concentrate on only themselves and to not even consider the global economy.  Basically, each individual nation needs to learn how to grow up economically independent.  We cannot expect states, today, to simply rush through their own industrial revolutions and information revolutions overnight, this is something that took most modern nations decades.  To Modernists, the expanding globalized economy is a deterrent to economic vitality in the developing world.  How can these poor states compete with powerhouses like the U.S., China,  India, and so forth?  Especially when we consider that most of these states have subsidies for their agricultural and raw materials sectors which make it increasingly difficult for nations who cant afford to do so, to compete.  This theory believes that the current global economy works against the developing world and that the only cure is for developing states to abandon it and try to concentrate solely on themselves.

Answer 2

Modernization had resulted to the cohesion of nations particularly those tied with similar culture.  Thus, globalization demands that they must join as a group for purposes of economic and security cooperation.

Answer 3

Well the industrial revolution and modernzation is very inportant and influential on todays economy.  History will show us how and why certion regions are poor and certain are rich.  Certain countries are more dependent on others usually these countries are the rich ones such as germany and japan.  Service industry countries rely on others for raw materials and food.