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richard-harper
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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.