Modernization theory is important in development because it provides a framework for understanding the process of societal change and progress. It focuses on economic growth, industrialization, and social changes as key drivers of development. By studying modernization theory, policymakers and scholars can gain insights into the challenges and opportunities that countries face in their development efforts.

The participatory theory criticizes the modernization paradigm on the grounds that it promoted a top-down, ethnocentric and paternalistic view of development.

Modernization theory argues that economic growth and development are essential for societal progress, suggesting that industrialization and technological advancement lead to societal modernization and improved quality of life. It also emphasizes the importance of cultural changes and the adoption of Western values and institutions in achieving modernity. Additionally, modernization theory asserts that developing nations can catch up to developed countries by following a linear path of development.

Talcott Parsons is often associated with modernization theory, which posits that societies progress from traditional to modern forms through industrialization and economic development.

The modernization theory puts the most emphasis on economic development social and cultural change, and political stability. The theory believes that certain steps can bring success to every country and that the policies and ways of western countries is best. An important difference with the dependency theory is that western countries force their rules and policies on developing countries. The dependency theory was developed to criticize the modernization theory.