Five stages of Economic Development
Walt Rostow developed a historic approach in order to identify the development of economic growth. There are five stages of economic development.
It is a part of every country’s economic plan that a major portion of the productive resources are usually used for agricultural purposes. In a traditional society, there is no evident use of the modern technology or not enough information available to use this technology. For instance, American had a traditional society in the beginning of 1942 which gave the Native American’s an advantage in the society over others as they had protection against issues like war.
The pre-conditions to Take-off:
It refers to the long term duration or a greater amount of time during the pre-conditions to take-off. These conditions include, political determination, the development of political and social backgrounds, the need to develop a centralized system of taxation and the versatility of the labor.
The ‘Take-off’ period:
The take off period is a short term stage which is usually composed of 20-30 years of time. During the take off period, the rate at which the investments are made increases and there is an up and down in the income flows as well. Take off period is directly associated with bringing primitive changes. For example, the condition of Britain during the industrial revolution.
Drive to Maturity:
This is a long period of self-growth and maturity. At this point the rate at which investments are made are at point where the economic development become impulsive. The condition of the United States of America after the World War II is the perfect example of this particular stage.
The age of high mass communication:
This is the stage where the per capita elevates drastically which means it becomes really easy for every single person to afford, food, water, shelter and clothing. For example, the western modern world where both the upper and the middle class society fits quite well in most well developed countries.