Page 52 - The World About Us

Palm oil factory
1.1.1
2.2.3

How does Rostow’s model explain development?

How do economies develop over Fig.143 Walt Whitman Rostow’s
me? What processes and features Stages of Economic Growth. 5. The ul mate goal 5. High mass
allow socie es to change from of development consump on
'primi ve' hunter-gather socie es to
4. Drive to maturity with
advanced industrial na ons? These
ques ons have been the source of developing industry
much debate and argument since the 3. Manufacturing exceeds 10% of and commerce
emergence of modern capitalist na onal income and the 4. Exploita on of advantages
socie es from the 18th century development of social, 3. Take off with in interna onal trade
onwards. economic and poli cal development of
manufacturing
A popular model of economic ins tu ons
development was published in 1960 2. Precondi ons
by an American economist and for take off using 2. Exploita on of agriculture and
government official called Walt primary industry the extrac ve industries as well as
Whitman Rostow. 1. Tradi onal the development of infrastructure
society with
Rostow's Stages of Economic limited technology such as roads and railways.
Growth suggested that socie es
passed through five stages. The model
Stage 2: Precondi ons for take off created, which in turn encourages
suggested that all countries were more investment; a posi ve circle of
somewhere along this linear journey, In this stage, agricultural surplus growth.
just as a baby becomes a child, then a grows as farming prac ces improve.
teenager and then an adult. For This allows for trade and the Stage 4: Drive to maturity
Rostow, development moved in one development of communica ons This stage takes place over a longer
direc on with the ul mate goal of infrastructure such as roads. This helps period of me. Standards of living rise
facilitate more trade.
economies similar to the USA. as the na onal economy grows and
Agriculture becomes more begins to diversify. The use of
To see how countries like Indonesia
may fit into Rostow's model, we need commercial. Profits from trade can be technology increases along with the
to understand the stages the he invested into the development of infrastructure to make this possible.
decided were way markers on the road secondary industries, such as tex le Farming is now almost en rely
to full economic development. manufacturing. The economy develops commercial and industrialised and
a na onal character and begins to have
Stage 1: Tradi onal socie es employs rela vely few people. Cheap
a rela onship of trade and cultural food may be imported from other
This stage is characterised by exchange with other countries.
countries. Ter ary service jobs begin to
subsistence agriculture and hun ng
Stage 3: Take off dominate in sales, teaching, nursing,
and gathering from nature. This is and providing the whole range of
labour-intensive work but leaves the In Rostow's model this is a short services seen in a modern, urban
society at the mercy of the weather, period of intense and sustained society.
pests and diseases and wars. These growth. Industrialisa on occurs and
vulnerable socie es are dominated by secondary industries of manufacturing Stage 5: Age of mass consump on
supers on and place human success dominates the economy. The move This was Rostow's ul mate
in the hands of the gods, spirits or from primary to secondary development goal; an economy similar
employment leads to large scale rural-
ancestors. to the USA where mass produc on
to-urban migra on, which in turn and mass consump on of goods and
fig.144 W. W. Rostow with US President speeds the process of urbanisa on.
Lyndon Baines Johnson, 1968. services occur within the framework of
Governments are able to invest in capitalism. Increased disposable
social schemes to improve health and income means families can spend
educa on, as well as the general money on high value goods such as
infrastructure. Roads, railways, cars, electronics, designer goods and
airports, schools and colleges and leisure ac vi es such as holidays.
energy distribu on networks develop.
Services now dominate the
Interna onal and domes c investment economy with manufacturing taking
con nues to boost the economy place in more high tech facili es.
crea ng a 'mul plier effect' where Rostow saw this as the final stage in
investment leads to more wealth being development.

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Many factors contribute to a country’s economic development. Many factors contribute to a country’s economic development.