Modernization theory suggests that the vast gap between rich and poor nations is the result of cultural differences. Dependency theory explains global inequality by focusing on colonialism and...

Modernization theory suggests that the vast gap between rich and poor nations is the result of cultural differences. Dependency theory explains global inequality by focusing on colonialism and neocolonialism. World systems analysis highlights the interdependence among countries, showing how domination of poorer countries by wealthy ones continues today. Some critics argue that this domination is achieved, in part, through global financial institutions.