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    Rostow Stages

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    Alina Zafer
    Rostow proposed a theory of economic growth in stages that a country passes through on the path from underdevelopment to development. The stages are: 1) traditional society focused on agriculture and customs, 2) preconditions for take-off including education and entrepreneurship, 3) take-off driven by industrialization, education, and increasing investment, 4) drive to maturity where industry and technology advance, and 5) high mass consumption driven by consumer goods and services. However, the theory is criticized for not providing clear criteria for moving between stages and assuming institutional and social changes will automatically follow economic changes.

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    Rostow Stages

    Uploaded by

    Alina Zafer
    42 views9 pages
    Rostow proposed a theory of economic growth in stages that a country passes through on the path from underdevelopment to development. The stages are: 1) traditional society focused on agriculture and customs, 2) preconditions for take-off including education and entrepreneurship, 3) take-off driven by industrialization, education, and increasing investment, 4) drive to maturity where industry and technology advance, and 5) high mass consumption driven by consumer goods and services. However, the theory is criticized for not providing clear criteria for moving between stages and assuming institutional and social changes will automatically follow economic changes.

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    12. Rostow Stages

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    Rostow proposed a theory of economic growth in stages that a country passes through on the path from underdevelopment to development. The stages are: 1) traditional society focused on agriculture and customs, 2) preconditions for take-off including education and entrepreneurship, 3) take-off driven by industrialization, education, and increasing investment, 4) drive to maturity where industry and technology advance, and 5) high mass consumption driven by consumer goods and services. However, the theory is criticized for not providing clear criteria for moving between stages and assuming institutional and social changes will automatically follow economic changes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    42 views9 pages

    Rostow Stages

    Uploaded by

    Alina Zafer
    Rostow proposed a theory of economic growth in stages that a country passes through on the path from underdevelopment to development. The stages are: 1) traditional society focused on agriculture and customs, 2) preconditions for take-off including education and entrepreneurship, 3) take-off driven by industrialization, education, and increasing investment, 4) drive to maturity where industry and technology advance, and 5) high mass consumption driven by consumer goods and services. However, the theory is criticized for not providing clear criteria for moving between stages and assuming institutional and social changes will automatically follow economic changes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Rostow Stages of Growth:

    Rostow provided some indicator based stages through


    which all the countries have passed while achieving
    development. Hence according to him transition
    from underdevelopment to development can be
    described in terms of series of steps or stages though
    which all countries must proceeded.
    Stage 1: Traditional society
    • Predominantly agricultural production function and
    dependency.
    • Country has limited needs and demands. Idle society
    where people believe that little is okay.
    • Very small variety of goods and serviced available
    • Traditions and customs are predominant, with non
    materialistic thinking in masses.
    • Political power is controlled by feudalism.

    • Example : Pre Islamic Arab Region


    Stage 2: Pre-Conditions to take
    off
    • People take interest in education, modernization and
    willing to accept change.
    • Centralized state based political system develops.
    • Increase in efficiency and productivity in agriculture.
    • People start to think about business ideas
    (entrepreneurship)
    • Urbanization takes place
    Stage 3: Take Off
    • Education spread
    • Entrepreneurship becomes trend
    • Technology develops
    • Industrialization occurs
    • Saving rate increases (15-20 %) together with
    investment.
    Stage 4: Drive to Maturity
    • Advances in technology through Research and
    Development
    • Changes in production system
    • Invention, innovation and specialization becomes trend
    • Country becomes more than self sufficient with vast
    production capacity (Exports).
    • Competition in product sales and increased variety of
    goods.
    • Sectors like services, tourism, amusement expands.
    • Industrial sector becomes dominant in output.
    • Mass education, almost 100% literacy rate.
    Stage 5:
    High Mass Consumption
    (Japan UK USA)
    • Consumer becomes king of market
    • Service sector expands
    • High quality production specialization
    • Too many variants of products (variety)
    • Consumer’s confused (which one to buy)
    Stage 6: Beyond High Mass
    Consumption (USA)

    • Lust for power goes beyond natural boundaries


    • Power to influence international decisions
    • Fully welfare state
    Critical View:
    • Climbing the stages is not necessarily automatic
    • No criteria provided of how to climb the stages
    • Some countries stuck, like Sri Lanka, therefore no estimated
    time to climb a stage
    • No necessary or sufficient conditions provided

    Ruston used saving and investment increase as major


    indicator and assumed institutions and labor motivations
    will come automatically but in developing countries this is
    major issue like working attitude, motivation to succeed
    etc.

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