Rostow’s Five Stages of Economic Growth and Development Model defined in 1960 which as under.
The Traditional Society
Rostow’s defined the stages of economic growth model traditional society as one whose structure is developed within limited and technology and as pre-Newtonian attitudes towards the physical world.
This does not mean that there was little economic change in society. The social structure of such a society was hierarchical in which family and clean connection played a dominants role.
Political power was concentrated in the regions in the hands of the landed aristocracy supported by a large retinue of soldiers and civil services.
More than 75 percent of the working population are engaged with agriculture. Naturally, agriculture is the main source of income of the state and the nobles.
Which was dissipated on the construction of temples and monuments on expensive funerals and weddings and on the prosecution of wars.
Pre-Conditions for Take-Off
The second stage is the transitional era in which sustained growth is created. The pre-condition for take-off initiated by four forces.
The New Learning, the New Monarchy, the New World, and the New Religions. These forces lead to the reasoning and receptions in place of four faith and authority.
In any case, the pre-condition for take-off follows along these lines.
The idea spread among that economic progress is possible and a necessary condition for another purpose.
For the capital mobilize the banks are approved. The scope of commerce external and internal widens.
Rostow’s said that precondition for take-off three steps are taken in industrialization in non-industrial sectors.
First, social overhead capital especially in transport, second is agricultural sector technology improvement. Last in the import of the economy is increased with capital imports.
The take-off is a great watershed in society’s life.
The value and interest of the traditional society make a decisive breakthrough, and compared interest gets built-into the society’s structure.
Rostow defines the take-off as an industrial revolution, tied directly to radical changes in the methods of production in a short period of time.
It is supposed to be short, lasting for about two decades. Rostow’s has given the following tentative take-off dates for those countries which are considered to be air-born.
Great Britain 1783-1802
Condition for take-off
Rostow’s Five Stages of Economic Growth and Development Model
The requirements of take-off are the following three related but necessary conditions.
- A rise in the rate of productive investment
- The development of one or more substantial manufacturing sectors with a high rate of growth.
- The existence or quick emergence of a political, social, and institutional framework.
The Drive to Maturity
Rostow’s defined it as the period when the society has effectively applied the range of modern technology to the bulk of its resources.
It is a period of long sustained economic growth extending well over four decades. New production techniques take the place of the old ones.
New leading sectors are created. The rate of net investment is well high over 10 percent of national income and the economy is able to withstand unexpected shocks.
Rostow’s gives the symbolical dates for technological maturity of the following countries.
Great Britain 1850
When a country is in the stage of technological maturity, three significant changes take place.
- The character of the working force changes
- The character of entrepreneurship changes
- Society feels bored of the miracles of industrialization and wants something new leading to further changes.
The Age of High Mass-Consumption
The age of high mass-consumption has been characterized by the migration to suburbia, the extensive use of the automobile, durable consumer goods, and household gadgets.
In this stage, the balance of attention of the society is shifted from supply to demand, from problems of production to problems of consumption and of welfare in the widest sense.
However, three forces are described that tend to increase welfare in this post-maturity stage.
- The pursuit of national policy to enhance power and influence beyond national frontiers.
- To have a welfare state by a more equitable distribution of national income through progressive taxation.
- Decisions to create new commercial centers and leading sectors like cheap automobiles, houses.