Difference Between Individualism And Industrialization

In this essay I will compare and contrast modernization theory, import substitution, and neoliberal economic theory and their approach for helping developing states grow economically. Modernization theory, created in the 1950’s, argues that countries simply need to follow the path that the already wealthy states followed, and they too will become rich. In other words, less developed countries should embrace Western ideas that individualism is important to a functioning society and economy. Therefore, if individuals follow their own desire, the country as a whole will prosper, and individuals succeeding in an economy will receive profits. The other aspect of modernization theory argues that countries should industrialize as much as possible and move away from agriculture production (IR, 2014). Today, modernization theory focuses on the social elements that help progress the development of societies and aim to explain the process of social evolution. “This theory looks at the internal functions of a society while referring to social and …show more content…
This theory contrasts with the ISI policies that rely heavily on government involvement to help an economy. Moreover, neoliberal theory supports extensive economic liberalization policies such as privatization, fiscal austerity, deregulation, free trade, and reductions in government spending in order to enhance the role of the private sector in the economy (CorpWatch, 2015). An issue with this theory is that when developing countries needed loans to keep here economy from collapsing policymakers in rich countries and international organizations would dictate what economic policies the developing countries would follow. This problem is similar to modernization theory where developing countries struggle to gain economic success when having to compete with rich