Modernization theory has suffered from holistic measurement and description of ‘modernization’, which has led to difficulties in identifying what factors of modernization are responsible for the changes seen through the process. This paper introduces an explanation for why modernization positively correlates with so many indicators such as human rights, gender equality, civil liberties, and democracy. ‘Method of sustenance’ – what work is being done and by what means – is identified as a factor that changes ingroups and norms and thus is responsible for the positive correlation observed in studies on modernization theory. Social Identity Theory is used to help support and describe this process. The argument is congruent with lessons from anthropology and economic sociology. The argument is applied specifically to democracy and statistical analysis is conducted on corruption, civil liberties, state fragility, and democracy ranking to support the argument. Statistical results are strong but suffer from validity issues. It is concluded that applying ‘method of sustenance’ and Social Identity Theory to modernization theory can help to strengthen modernization theory by explaining convincingly why and specifically how the process of modernization creates social changes.
