What is it?• Also known as Rostows Stages of Growth• Economic Growth
5 Stages of Economic Growth1. Traditional society2. Preconditions for take-off3. Take-off4. Drive to Maturity5. Age of High Mass Consumption
Traditional Society• Base by Pre Newtonian Society• Little Economic Change to Society• Usually goods are exchanged for others• Agriculture because it used limited quantities of the capital.
Preconditions for Take-off• Also known as the Transitional Stage• Bring changes in social attitudes, expectations, structure and values of society.• Economic Progress is possible
The Take-Off• Mainly technological• Switch from Agricultural Sector to the Manufacturing Sector.• 3 necessary conditions needed for takeoff• Rate of productive investment about 10%.• The development of substantial manufacturing sectors.
Drive to Maturity• Economy is diverse into new areas• Technology Innovation provides investment opportunities.
Age of High Mass Consumption• Service sector becomes increase singly dominant• Society’s being able to choose military issues or on developing great luxury for the upper class.
Strengths• Shows the economic development in countries• Shows what stages the countries are in.
Weaknesses• Many economists think the model works only for Western Countries.• Only shows the economic growth of a country.• Does not issue other developments in a wider context only economic.