Rostow stages of economic growth

Rostow stages of economic growth

Rostow model of economic growth is one of the major historical models of economic growth.. it was published by American economist called Walt Whitman rostow in the 1960s.

This model postulates that economic growth occurs in 5 stages of varying length.

Rostow argued that economic take off must be intially be held by few individual economic sectors.

The five stages are as follows

1.The traditional society.

This entail s barter trade was still practiced to exchange goods and services…here people used primitive and rudiment technology and are heavily realiant on substist nice farming.

2.PRE-CONDTITIONS.FOR TAKE -OFF

Here urbanization starts people revolve from substistence farming to commercial farming and there is improvement in transport networks like roads and railways

3.THE TAKE OFF

Urbanization increases ‘industrialsation proceeds technological breakthrough occurs .

Secondary goods producing sectors expands and the ratio of secondary vs primary sector in the economy shift quickly towards secondary.

Textiles and apparel are usually the first take off industry as happened in great Britain’s classic industrial revolution..an example of a take off is the phase of agriculture in 1960’s

4.The drive to maturity

Diversification of th industrial bas e multiple industries expands and new ones take root quickly.

Manufacturing shifts from investment driv en capital goods towards consumer durables and domestic consumption

Rapid davelopment of transportation infrastructure exist s.

Large scale investment s in social infrastructure in social infrastructure school s and th university and the hospital

5.The age mass consumption

The industrial base dominate s the economy.the primary sectors.

Is one of greatly diminished weight in the economy and the society.

Widespread and normative consumption of high value. Consumer goods (automobiles)

Consumers typically (if not universal)have disposal income beyond all basic needs for additional goods .

Urban society (a movement away from country side to the cities 

6.BEYOND CONSUMPTION (THE SEARCH OF QUALITY)

Age of diminishing relative marginal utility as well as as an age for durable consumer goods.

CRITICISM OF ROSTOW MODEL.

Rostow is historical in the sense that the end results is known at outset and is derived from the historical geography of a bureaucratic society. Love gives a gig.

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Rostow is Mechanical in the sense that the underlying motor of change is not disclosed and therefore the stages become little more than a classificatory system based on the data from developed countries.

His model assumes inevitable adoption of neoliberal trade policies which allows the manufacturing of a given policy to be relocated to lower wage regions .

There appear to be two parrell .theories of take off one is that’s take off is sectoral and non linear notion and the other is that is highly aggravative.

Rostow model does not apply to the Asian and African countries as the events in these countries are not justified in any stages of this model.

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