MODERNIZATION MODERNIZATION THEORYTHEORY

The social differentiation The social differentiation model – N. Smelser model – N. Smelser (1959)(1959) The economic model The economic model

– – W. Rostow (1960)W. Rostow (1960)

What is modernization?What is modernization?

TransformationTransformation

traditional traditional

societysociety

Modern society (increase in technology, and stable economy)

Emulation of Western Emulation of Western world world

(Westernization of (Westernization of developing countries)developing countries)

Utilization of more Utilization of more capitalscapitals

Development Theory by Development Theory by W. Rostow (1960)W. Rostow (1960)

(This model is based on the economy of United (This model is based on the economy of United Kingdom)Kingdom)

21

3

4 5

Time

EconomicGrowth

1.1.Traditional Traditional Society Society (Masyarakat (Masyarakat Tradisional)Tradisional)Limited output in Limited output in

productionproductionLow level of science Low level of science and technology and technology

FatalisticFatalisticPolitical power is Political power is non-centralizednon-centralized

2. The Preconditions 2. The Preconditions for Take-Off for Take-Off (Persediaan untuk (Persediaan untuk PelancaranPelancaran))New initiatives for New initiatives for economic development, economic development, education, commerce education, commerce and trade.and trade.

Increases in investment in Increases in investment in commercialization of raw commercialization of raw materials/commodities.materials/commodities.

Presence of ‘dualistic Presence of ‘dualistic society’ – the gap between society’ – the gap between the rich and the poor, and the rich and the poor, and between regions is high.between regions is high.

3. The Take–Off 3. The Take–Off StageStage (Peringkat (Peringkat Pelancaran)Pelancaran)

Agriculture is Agriculture is commercializedcommercialized

Growth in productivity – Growth in productivity – agriculture and agriculture and industries in urban industries in urban areasareas

4. The Drive to 4. The Drive to Maturity Maturity (Peringkat Ke Arah (Peringkat Ke Arah Kematangan)Kematangan)

About 20% of GDP is About 20% of GDP is invested in economy invested in economy

Towards involvement Towards involvement in international in international economyeconomy

High use of science and High use of science and technologytechnology

Production is not the Production is not the outcome of social necessity, outcome of social necessity, but for maximizing profits but for maximizing profits for international capitalist for international capitalist economyeconomy

5. Mass 5. Mass ConsumptionConsumption ( Peringkat ( Peringkat Pengeluaran Pengeluaran Barang Berkualiti)Barang Berkualiti)

Developed country Developed country statusstatus

Stable economyStable economy

Production of durable Production of durable goodsgoods

All basic needs are All basic needs are satisfied, and moves to satisfied, and moves to social welfare state.social welfare state.

To pursue military powerTo pursue military power

Question:Question:

How do you apply this How do you apply this theory to Malaysian theory to Malaysian development?development?