1. Economic development is a total
process that includes economic growth
and increase in the given amount of
goods and services produced by the
country’s economy.
PHASES OF ECONOMIC DEVELOPMENT
2. PHASES OF ECONOMIC DEVELOPMENT
Wealth acquisition is among the
concerns of economic development;
however its greater concern is the
improvement of people’s lives.
3. Economic development phases are the distinct
stages involved in the total process of
economic development
PHASES OF ECONOMIC DEVELOPMENT
4. Walt W. Rostow (1960) took a historical
approach in suggesting that developed
countries have to pass through five phases
to reach their current degree of
economic development.
1.Traditional society.
2.Preconditions for take-off.
3.Take-off.
4.Drive to maturity.
5.Age of mass consumption.
5. Rostow’s Economic Development Phases
1.Traditional society.
2.Preconditions for take-off.
3.Take-off.
4.Drive to maturity.
5.Age of mass consumption.
6. this is an agricultural economy of
mainly subsistence farming.
TRADITIONAL SOCIETY
with intensive labor and low levels of trading.
a population that does not have a scientific
perspective on the world and technology.
Rostow’s Economic Development Phases
7. Rostow’s Economic Development Phases
Preconditions for take-off.
Agriculture becomes more mechanized
and more output is traded.
Here, a society begins to develop
manufacturing and a more
national/international outlook.
8. Rostow’s Economic Development Phases
Take-off.
Rostow describes this stage as a short
period of intensive growth, in which
industrialization begins to occur.
workers and institutions become
concentrated around a new industry.
9. Rostow’s Economic Development Phases
Drive to Maturity
standards of living rise.
the use of technology increases,
and the national economy grows and
diversifies.
10. Rostow’s Economic Development Phases
Age of High Mass Consumption
a country’s economy flourishes in a
capitalist system, characterized by
mass production and consumerism.
