Modernization Theory, Walter Rostow, and Stages of Growth

(3) The Take-Off stage is characterized by:

(What Rostow says you must pass to become wealthy) -increasing industrialization, increasing agriculture tech., increasing. crops, increasing efficiency, DECREASE in amount of people employed. in agriculture (increasing agriculture tech. leads to less jobs in agriculture) -Agriculture technology: synthetic or man-made fertilizers/pesticides, mechanical tractors/combines -Extractive economic activities take root: mining, forestry --> harvesting natural resources to FUEL take-off, industrialization, and economic growth

(4) The Drive to Maturity Stage is characterized by:

-growth becomes self-sustaining (continues over years) -industry more diversified -MANUFACTURING plays a key role in economic growth (electronics, cars, clothes, etc.) -increases in levels of technology used in economy as well as by individuals -As the economy matures, technology plays an increasing role in developing high value added products

(5) The High Mass Consumption stage is characterized by:

-highest income -high output levels -mass consumption of consumer durables -high proportion of employment is in SERVICE SECTOR (tertiary)= banking, entertainment, retail, healthcare, insurance, etc. -Service industry dominates the economy

(1)A Traditional society is characterized by

-lowest income -subsistence economy/agriculture= output not traded or recorded (individuals feed themselves first, and may trade/barter with neighboring families if they have excess) -majority of employment is through labor intensive agriculture (manually oriented)

(2) The Pre-conditions stage is characterized by

-majority still do agriculture, but use of small technology is introduced (horses, horse-pulled plows, etc.) to make it "slightly less" labor intensive -increase in capital use in agriculture -development of mining and other extractive industries -necessity of external funding -some growth. in savings and investment

The 5 stages of Growth:

1. Traditional Society 2. Pre-conditions (for take off) 3. Take-off 4. Drive to Maturity 5. High Mass Consumption

Walt W. Rostow

An American who introduced that a country can go from poor to rich by following the linear path of high income nations -Introduced during Cold War/space race -Says a country can't go backwards through path, it can just stay still

Examples of countries in the Drive to Maturity stage:

Brazil, China, India, South Africa, Russia

Examples of countries in the take-off stage:

Kenya, Uganda, Tanzania, Uruguay, Paraguay, Argentina

Example of a country in a traditional society:

Lesotho [86% residence in subsistence agriculture], North Korea, Haiti

Example of a country in the pre-conditions stage:

Somolia

Example of countries in the High mass consumption stage, or highest income countries:

USA Europe