Rostow’s Stages of Economic Growth
Introduction
Rostow proposed a model of economic development that describes a country’s progression which occurs in five stages transforming them from least developed to more developed regions.
Stages
- The traditional society – a country that has not yet begun the process of development. It contains a very high percentage of national wealth allocated to the military and region. (Rostow called those services “non-productive”)
- Preconditions to take off – An elite group of people initiates innovative economic activities including new technology and infrastructure.
- The Take-off – Rapid growth generated in a limited number of economic activities like textile and food production.
- The drive to maturity – Modern technology diffuses in many areas. Workers become more skilled and specialized.
- The age of mass consumption – The economy shifts from heavy industry to consumer goods.
Support Of The Model
According to the model, each country is in one of the five stages. It was based on two factors:
- The developed countries of Europe and Anglo-America had been joined by other countries in Southern and Eastern Europe and Japan.
- Many LCDs contain an abundant supply of raw materials sought by manufacturers and producers in MDCs.
Critiques Of The Model
One major problem with the model is that it assumes that all countries will follow the same process of development that the developed countries of Western Europe and North America followed. It also follows countries with a capitalist economy. Not all countries in the world have a strong, capitalistic economy like those in the West.