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Modernization theory aims to explain why
poorer countries have failed to develop
and to provide a non-communist solution
to poverty.
Intro…read more

Slide 3

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Agriculture economy
· Trade involves
bartering (goods for
goods)
· Labour intensive
production
· Resource allocation is
determined by
traditional production
methods…read more

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Specialization
occurring
· Surplus goods
for trading
· Infrastructure
emerging
· Entrepreneurs
emerging
· External trade
of mainly
primary
products…read more

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Industrialization occurring -
workers moving from
agriculture to
manufacturing
· Growth is self sustained
(investment, more income,
more savings, investment
etc.)
· New political and social
institutions support
industrialization…read more

Slide 6

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Economy
diversifying
· Technology
advancing
· No longer relying
on imports
· Producing wide
range of goods and
services…read more

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