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Sociologists have developed several theories to explain global inequality, focusing on the historical, economic, and social factors that contribute to the disparity between wealthy and poorer nations. These theories offer different perspectives on the basis of inequality and the ways in which it is perpetuated.
Modernization Theory
Modernization theory suggests that global inequality results from differences in technological advancement, industrialization, and internal development among nations. According to this perspective, all societies follow similar stages of progress, transitioning from traditional agrarian economies to modern, industrialized ones. Wealthier nations are seen as models for underdeveloped countries to imitate by adopting modern technologies, political systems, and economic practices such as free markets and democracy. Modernization theorists often attribute poverty in less-developed nations to internal barriers, such as corruption, limited education, or outdated cultural practices, which prevent progress. However, critics argue that this theory oversimplifies development by ignoring historical exploitation and external factors like colonization and global power imbalances.
Dependency Theory
Dependency theory suggests that poorer countries have been held back because wealthier countries have historically exploited them, especially during colonial times and the rise of global capitalism. During colonial times, powerful countries took resources, labor, and wealth from their colonies, leaving those nations underdeveloped and dependent. Even today, many poorer countries remain stuck in a cycle of dependence. For example, a country in sub-Saharan Africa might rely on exporting raw materials like coffee or oil at low prices while importing expensive finished products like machinery or electronics from wealthier nations. This keeps poorer nations economically reliant on richer ones. However, some critics argue that dependency theory doesn’t pay enough attention to internal issues, such as how a country is governed or its social systems, which also affect development.
World-Systems Theory
Building on dependency theory, world-systems theory, developed by sociologist Immanuel Wallerstein, provides a framework for understanding global inequality through the perspective of a stratified global economic system. According to this theory, nations are interconnected and divided into three categories:
- Core nations, such as the United States, Germany, and Japan, dominate global trade and finance, benefiting the most from the global system by exploiting the labor and resources of poorer nations.
- Peripheral nations, like Haiti or Ethiopia, are less developed and primarily rely on exporting raw materials and cheap labor, making them highly dependent on core nations.
- Semi-peripheral nations, such as Brazil, India, or South Africa, occupy a middle ground position. These countries experience some economic growth and development but remain partially reliant on core nations while also engaging in some exploitation of peripheral nations.
World-systems theory highlights how the global economy perpetuates inequality by concentrating wealth and resources in core nations. Critics of this theory argue that it can be overly deterministic, implying that nations are permanently locked into their roles within the global hierarchy.
