Both theories provide potentially successful solutions to poverty and underdevelopment as seen in Indonesia, and can both be applied to increase development in many developing
Dependency theory’s focus on self-sufficiency and local empowerment seeks to improve quality of life of the local populace while allowing them to stay in control in order to look after themselves and their environment. However these come at a cost to the local population in the forms of exploitation and potentially violations of rights as well as often progressing forward with consideration for the local environment as seen within Indonesia’s palm oil industry. One of the biggest industries within Indonesia is the agricultural industry which has one of the largest productions of Palm oil in the world, approximately 85% and with the world’s demand of Palm oil increasing each year, there is a lot of room for development in the …show more content… Modernisation theory’s focus on external help and investment can lead to rapid growths within the local economy and industry leading to higher levels of development. It is currently the 4th largest country in terms of population in the world and with nearly 30 million people living below the population line, there is a lot of room to improve development. By investigating each theory further and analysing …show more content… Indonesia is a large and fast growing economy with an estimated population of 261, 300, 000 people (Worldometers Indonesia Pop.,2016). Dependency theory has the main focus as the local population and environment, seeking to bring self-sufficiency and control to the locals in order to provide methods of growth while making sure the populace are the main priority. Modernisation theory has several concepts that see the solution as a top down approach utilising international markets and investment to bring in wealth and development to the area. Modernisation and Dependency are two theories that have their own terms for analysing/interpreting the causes of poverty and underdevelopment, and both provide different solutions in order to fix the problems. Show More Comparison and contrast between Modernisation Theory and Dependency Theory.
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