What is modernization theory? Theories exist in every part of life, but they can be complicated. This article simplifies modernization theory: where it came from, what it is, how it works, how it relates to tourism and why it has been criticised.
What is modernization theory?
Modernization theory is a societal theory linked to how societies progress. It examines the internal factors of a country, assuming that with some assistance the more ‘traditional’ countries can develop in the same manner as ‘more developed countries’.
Modernization theory took the ideas of Max Weber, a German sociologist, who was examining the role of rationality and irrationality as societies transition from traditional to modern. Later, Harvard sociologist Talcott Parsons provided his own interpretation of modernization. The theory rose to prominence in the 1950s and 1960s.
The theory focuses on richer and more developed – or more modern – countries, suggesting that an increase in technology will make all nations wealthy, especially if poor nations are able to follow the path of these richer countries. One of the overarching ideas is that richer countries are the solution to poverty.
Traditional and undeveloped countries
In order to understand this, we must first look at what traditional and developed countries are, and how they differ. This is subjective, of course, but there is some manner of official classification involved. The UN itself states that The designations “developed” and “developing” are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process.
What is a traditional country?
Countries at the ‘traditional’ end of the scale are sometimes described as undeveloped or least developed countries (LDCs). According to the United Nations, LDCs show the lowest indicators of socioeconomic development, and most have low Human Development Index ratings. As of 2025, there were 44 countries on the UN’s list of least developed countries.
What is the Human Development Index?
The HDI was created by Pakistani economist Mahbub ul Haq, working with Indian economist Amartya Sen, and was launched in the UN Development Programme’s first Human Development Report in 1990. It is an index which measures life expectancy, education and gross national income (GNI) per capita. Countries score higher where life expectancy is longer, where education levels are higher and where GNI per capita is higher. In the 2025 Human Development Report, Iceland ranked first in the world.
So, traditional or undeveloped countries score lower on the HDI. To be officially classed as one of the least developed countries, a country must meet three criteria. These are low income (in the UN’s 2024 review, a three-year average gross national income per capita below $1,088), a weakness in human resources like health, education and literacy, and economic vulnerability due to a variety of reasons such as agricultural instability and high levels of natural disaster displacement.
Some examples of the least developed countries, according to the United Nations, are listed below (Bhutan, which was previously on the list, graduated from LDC status in 2023):
- Ethiopia
- Uganda
- Liberia
- Haiti
- Tuvalu
- Nepal
- Cambodia
What is a developed country?
Developed countries are on the opposite end of the scale. They generally have a high quality of life, a developed economy, and an advanced technological infrastructure. There are more criteria to tick in order for a country to be officially classed as developed. These are:
- Gross domestic product (GDP)
- Per capita income (high)
- Gross national product (GNP)
- Level of industrialisation (high)
- General standard of living (good/excellent)
- Amount of widespread infrastructure
However, these differ slightly depending on which index or classification you are examining at the time. They generally follow a similar pattern, and most lists include the same countries. Some of these include:
- Norway
- Ireland
- Switzerland
- Hong Kong
- Iceland
- Germany
- Sweden
- Australia
How does modernization theory work?
When we talk about modernization theory in relation to traditional and developing countries, it means two things. One is that theory attempts to identify which social variables contribute towards social progress. Secondly, it tries to explain the process of social evolution. It examines both the process of change as well as the responses to this change while looking at internal dynamics AND social/cultural structures alongside the adaptation of new technologies.
According to Walt Rostow, an American economist, in his 1960 book The Stages of Economic Growth: A Non-Communist Manifesto, the modernization of a country follows five linear stages. These are said to be:
- The traditional society
- Pre-condition to take off
- Take off
- Drive to maturity
- Age of mass consumption (e.g modernization)
This lays out a growth progression: countries start with simple or traditional values, beliefs and attitudes. Thanks to advances in technology, countries start to become more modern – in turn, they grow their economy and education improves. We can examine each of these stages in more detail, too…
The Traditional Society
This is where there is limited technology, or none at all. Society relies on what is known as ‘subsistence agriculture’ – Britannica describes this as a form of farming in which nearly all of the crops or livestock raised are used to maintain the farmer and the farmer’s family, leaving little, if any, surplus for sale or trade. Pre-industrial agricultural peoples throughout the world have traditionally practised subsistence farming. Some of these peoples moved from site to site as they exhausted the soil at each location.
There is limited ability for economic growth, and no centralised nation or real political system in place. As the start of this scale, this is where all societies or countries start off.
The Pre-conditions for Take-off
This is when the economy starts to change due to an external demand for raw materials; commercial agriculture falls into place and we start to see investment into infrastructure to help this such as irrigation systems or canals. With this comes the first wave of technological advancements, which become more widespread over time.
Because of this, the social structure or status quo starts to change. We begin to see individual social mobility e.g people climbing the social ladder and becoming of a higher class, perhaps. This coincides with a national identity – with shared economic interests – being developed.
The Take-off
Next comes the take-off itself. It’s a bit like a snowball picking up pace and growing as it does; everything becomes more widespread, like urbanisation and industrialisation. The nation starts to make technological breakthroughs around this point, too.
There becomes a quick shift towards producing ‘goods’ rather than just producing enough to sustain the community. It is said that textiles is usually the first industry to ‘take off’ (hence the name of this stage) when a country is developing.
Britain’s Industrial Revolution is the classic example. It began in the textile industry, where inventions in the late 1700s, such as the spinning jenny and the water frame, transformed the manufacture of cloth. Demand for clothing grew alongside Britain’s rapidly growing population, and the cotton used by English mills was largely imported from plantations in the American South, showing how industrial take-off in one country could have impacts worldwide.
The Drive to Maturity
At this point we start to see a much larger-scale investment in social infrastructure. This means building schools and universities, hospitals and housing and so on. The transportation infrastructure of the nation develops very quickly during this stage too. Industry is diversified – new industries find their feet as existing ones continue to expand. On top of this, the focus of a country’s manufacturing will shift from being driven by investments (e.g creating capital goods) towards focusing on domestic consumption and consumers.
The Age of Mass Consumption
This is the final stage of Rostow’s scale of modernization theory. At this point it is normal to see mass consumption of high-value consumer goods like cars, smartphones and so on. Consumers aka citizens generally have disposable income which allows them to spend beyond just covering their basic needs. Society in itself is more urban now; e.g there has been a move away from living in rural settings, such as on farms – people now live in cities or the in-between spaces known as suburbs.
In Rostow’s model, the economy at this stage is increasingly driven by the production and consumption of consumer goods and services, and governments may also devote more resources to social welfare and security.
Modernization theory, whichever way you look at it, suggests that all countries do and should follow this pattern.
Modernization theory and tourism
Modernization theory has had a significant influence on tourism development. From the 1960s onwards, international organisations such as the World Bank promoted tourism as a way for developing countries to earn foreign currency, create jobs and ‘take off’ economically. A well-known example is Cancún in Mexico, which was purpose-built as a tourist resort by the Mexican government from 1970 onwards.
Tourism can bring positive economic impacts, such as employment, infrastructure investment and tax revenue. However, critics argue that development based on this model can lead to economic leakage (where much of the money spent by tourists leaves the destination), dependency on foreign tour operators and hotel chains, and negative social and environmental impacts. These concerns contributed to the rise of alternative approaches, such as sustainable tourism and community-based tourism.
Criticism of modernization theory
No theory is without its criticism, and modernization is no exception to this. It has been widely criticised by many, as it applies a Western-centric structure and way of living globally. It is said to disregard indigenous culture and to treat traditional ways of life as obstacles to progress. Andre Gunder Frank (a key figure in dependency theory) and Immanuel Wallerstein (who developed world-systems theory) are two scholars who challenged the theory, arguing that poorer countries’ underdevelopment is linked to their unequal relationships with richer countries. It has been said that every society is modern because it still exists – so critics say that modernization theory treats non-Western nations as primitive and therefore inferior.
Because the term modernization has been used interchangeably with other academic and sociological terms such as ‘development’, ‘liberalisation’ and so on, it can be difficult to pinpoint exactly what people mean when they use it in writing or conversation, or even policy, if they are not explicit. The term has become imprecise and so, many argue, pointless or simply wrong.
Another criticism suggests that this way of thinking is too binary. It looks at traditional vs modern and while Rostow does present a scale, many have suggested it is unhelpful to categorise nations into these two boxes alone. This is because there are many factors which have an impact on the development of a country.
Modernization theory: FAQs
Below are answers to some of the most common questions about modernization theory.
What is modernization theory in simple terms?
Modernization theory is the idea that ‘traditional’ societies can develop economically and socially by following the same path as wealthier, industrialised countries, mainly through technology, industrialisation and economic growth.
Who developed modernization theory?
Modernization theory draws on the ideas of Max Weber and was developed in the 1950s and 1960s by scholars including Talcott Parsons and economist Walt Rostow, whose 1960 book set out five stages of economic growth.
What are Rostow’s five stages of economic growth?
Rostow’s five stages are the traditional society, the pre-conditions for take-off, the take-off, the drive to maturity and the age of high mass consumption.
What are the main criticisms of modernization theory?
Critics argue that the theory is Western-centric, ignores the value of indigenous cultures, is too binary in dividing countries into traditional and modern, and overlooks how unequal global relationships can keep poorer countries underdeveloped.
How does modernization theory relate to tourism?
Modernization theory encouraged governments and organisations such as the World Bank to promote tourism as a route to economic development, as seen in purpose-built resorts like Cancún, although critics highlight problems such as economic leakage and dependency.
Modernization theory- further reading
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