ROSTOW’S MODEL OF ECONOMIC DEVELOPMENT. TRADITIONAL SOCIETY *LIMITED TECH. *STATIC SOCIETY Burkina...

ROSTOW’S MODEL OF ECONOMIC DEVELOPMENT

TRADITIONAL SOCIETY

*LIMITED TECH.

*STATIC SOCIETY

Burkina Faso, Malawi

Transition is triggered by external markets and influences

PRE-CONDITIONS

FOR TAKEOFF

Exploitation of agriculture and extractive industries

Honduras, Malaysia

An elite group initiates innovative economic activities

TAKE-OFF

Development of a manufacturing sector

China, India, Mexico

Development of modern social, economic and political institutions

DRIVE TO MATURITY

Development of a wider commercial and industrial base

Investment in manufacturing exceeds 10%

Exploitation of advantages in international trade

Hungary, S. Korea

AGE OF MASS CONSUMPTION

USA, Japan, Germany

Economy shifts from heavy industry to consumer goods

Problems with Rostow’s model:

*overly simplistic

Myth of development that every country will reach stage five.

Early starters can’t be compared to late starters – (early starters achieve stage five by exploiting late starters.)

Built upon a European model.