In the early 1950s many developing countries lacked indigenous research and technology capability. In their desperate attempts to modernize traditional agriculture they selectively borrowed technology and strategies of development from the West. Green revolution technology produced some impressive results in food production but also increased poverty and caused deterioration of the environment. It is easier to be critical than to find universal solutions to solve complex problems of development in diverse agro-climatic and socio-political systems. This paper examines the external megaforces, namely international agricultural centers, trade, bilateral aid, and international organizations affecting modernization of agriculture in developing countries, and provides a balanced critique on positive and negative impacts of modernization in these countries. General trends of social and environmental impacts are briefly summarized. New approaches undertaken by international centers and by some developing countries to overcome social and environmental impacts of modern agriculture are reviewed. Mechanisms to generate appropriate agricultural technology development and management of delivery services are suggested to achieve integrated socio-economic welfare of the people and sustainable environment.