How does modernization theory explain the differences in wealth among nations?

Modernization theory explains that countries develop in stages, and those at the early stages tend to be poorer. According to this theory, wealth differences arise because some nations have embraced technology, education, and industrialization more than others. For example, a country that invests in education and builds factories can produce more goods and services, leading to greater wealth. In contrast, nations that rely on agriculture and lack infrastructure may struggle to grow economically. Thus, modernization theory suggests that by following the path of developed nations, poorer countries can improve their economies and reduce the wealth gap.