Theories of Global Stratification

As society has socioeconomic classes, so

is the world classified economically.
Theories :
1. Modernization Theory (MT)
- It frames the world’s division as a
function of technological & cultural
differences between nations.

- It holds on the idea that being rich could

be reached. But this theory also argues
that the tension between tradition and
technological change is the biggest
barrier to growth
MT states that a society that is high in
family systems and traditions may be less
willing to adopt new technologies &
social systems.

When individualism replaced

communalism in Europe, it became a
perfect breeding ground of
modernization.
 Walt Rostow’s Four Stages of
Modernization

a. Traditional Stage
- refers to societies that are structured small,
local communities with production typically
done in family settings that have limited
resources and technology
b. Take-off Stage
- here people began to use their talents to
produce things beyond necessities;
innovations created new markets for trade
 c. Technological Maturity Stage
Nations began to push for social & economic
change, such as having basic schooling for
everyone & developing more democratic political
systems
d. High Mass Consumption
It is when the country is big enough that
production becomes more about wants & needs.
The social support systems in place ensure that
all of their citizens have access to basic
necessities
2. Dependency Theory and Latin American
Experience
This phenomenon started when European & USA
began colonizing; dependency theory focuses on
how poor people have been wronged by richer
countries.
Dependency theorists saw that:
• the development of peripheral nations is
stagnant because of the exploitative nature of
the core nations;

• Less developed periphery countries serve the

interests of the wealthier countries & end up
having little to no resources to put forward
their own development
 Immanuel Wallerstein Model of Capitalist
World Economy
- Terms emerged:

1. Core nations: industrialized

2. Semi-periphery: middle-income countries, has

closer ties to the core nations

3. Peripheral nations: less developed

Reflection:
• Given with the knowledge about economic
globalization, we are able to know about the
issues about it.

• Think critically about solutions to the various

problems brought by globalization
For Class Discussions Task (next meeting)

Economic Challenges: Cite three.

Solutions/Actions: Propose 1 solution/action for

each challenges that you have observed.