Modernization theory and Dependency theory

Skidmore and Smith present two theories, Modernization theory and Dependency theory. Modernization theory is that positive material growth yields positive social equality. Dependency theory states that a dependent economy yields or brings social inequality, which in turn can lead to political authoritarianism. <Tab/>Skidmore and Smith state that dependency theory distorts modernizations predicted outcomes. Mercantilism is a form of dependency. <Tab/>The social, economic and political outcomes …

…materials for the mother country. The mother country would supply the colonies with finished products in return. This arrangement was geared toward the economic enrichment of the mother country at the expense of the colonies. The ECLA thesis developed by Presbish, it states that overtime the prices of finished products rise faster than the prices of primary products, raw materials. The ECLA thesis explains the nature of dependency during the post-independent, 1880 period to the present.