The Rostow Model

time level of development The Traditional Society Pre-conditions for Take Off Take Off High Mass Consumption The Drive to Maturity

The Traditional Society A subsistence economy based on farming. Output is consumed by producers rather than traded, but is consumed by those who produce it; trade by barter where goods are exchanged they are 'swapped‘. Agriculture is the most important industry and production is labour intensive, using only limited quantities of capital.

The Traditional Society Surpluses for trading emerge supported by an emerging transport infrastructure. Savings and investment grow. Entrepreneurs emerge. A single industry begins to dominate – often textiles. Pre-conditions for Take Off

The Traditional Society Industrialisation increases, with workers switching form the land to manufacturing. Growth is concentrated in a few regions of the country and in one or two industries. New political and social institutions are evolve to support industrialisation. Airports, roads and railways are built. Take Off

The Traditional Society Growth is now diverse supported by technological innovation. Economic development spreads to all parts. Increase in number and types of industry. Early industries decline. Rapid urbanisation. The Drive to Maturity

The Traditional Society Rapid expansion of tertiary industry. Industry shifts to production of durable consumer goods. High Mass Consumption