Earlier industries start todecline as manufacturing takes dominance and a wider range of industries develop. A demarcation along this line is surely arbitrary. Much of the economic activities that were carried out in these countries were primarily meant for feeding the family. Thus, people are earning the money necessary to enter into the age of mass consumption, wherein they have enough disposable income to indulge in many extra consumer goods. The first stage is characterized by primitive technology, hierarchical social structure and behaviour conditioned more by custom and accepted practice than by apparently rational criteria.
An example of a country in the Take-off stage of development is Equatorial Guinea. He could not realize that outside the agricultural sector there are also useful economic activities such as mining which can also develop such countries. Rostow proposed a clear five stage theory which he believed that for each country to develop it has to pass through sequentially. This has saved countries in the Soviet Union, and the Shingling Union. Thus as a predictive model it is not very helpful. Moreover, in 2005 when Bangladesh has its highest percentage of jobs in the service industry, it still has less money than China did at its lowest point. High Mass Consumption: According to Rostow, the last stage of economic growth is the High Mass Consumption stage in which the economy produces surpluses for its internal and external markets.
Thus in the stage of precondition for take-off Rostow views agriculture as performing three roles, first, agriculture must produce sufficient food-grains to meet the demand of growing population and of the workers who get employment in agriculture. Tentative take-off dates The take-off also needs a group of entrepreneurs in the society who pursue innovation and accelerate the rate of growth in the economy. He believed that the initial stage is the traditional stage, followed by the Pre-conditions for Take-off stage, then the Take-off stage, Drive to Maturity Stage and finally the High Mass Consumption stage. Individuals begin having larger families and do not value income as a pre-requisite for more vacation days. Services industries have always been there since time immemorial even though they were small scale industries. This does not entirely mean that the economy's production level is static. To Rostow, each stage in economic growth is unique and easily identifiable.
The economy is diversifying into new areas the economy is producing a wide range of goods and services and there is less reliance on imports. The rates of saving and investment are of such a magnitude that economic development becomes automatic. The model just explain the stage as highly visible and overlook the exact conditions that can make an economy boost. This charge is correct in that many countries make false starts, reach a degree of transition and then slip back, or as is the case in contemporary Russia, slip back from high mass consumption or almost to a country in transition. The precondition phase is not necessary before the take-off. These are societies which have pre-scientific understandings of gadgets, and believe that gods or spirits facilitate the procurement of goods, rather than man and his own ingenuity.
All we want is people to accept what they have and make effort to develop them. This implied an increasing capital-output ratio over the various stages of industrialisation. Agriculture assumes lesser importance in relative terms although the majority of people may remain employed in the farming sector. Industrialization becomes a crucial phenomenon as it helps to prepare the basic structure for structural changes on a massive scale. The labor force is pretty much completely unskilled, and scientific and technological development is primitive.
The Take-off stage is third and Rostow believed it to be the most important of all the stages because the economic growth was rapid and sophiticated. In the history of many African societies, one may also realize that political and social institutions started sanctioning trade since pre-colonial era a time equivalent to the traditional stage of Rostow. There is a desire to develop an egalitarian society and measures are taken to reach this goal. The take-off into self-sustained growth was given in 1937, while in later publications, it has been put at 1952. The size of the dots representing the countries is a reflection of their population. Modern science and technology has yet to be introduced.
These new industries producing durable consumer goods become the new leading sectors of economic growth. Rostow argued that the economies of all countries could be placed within one of five different stages of economic growth. High proportion of resources are also devoted in the agricultural section. Further, there is a change in the attitude of the people who start viewing the world where there are possibilities of future growth. The necessary condition for this is the capacity to mobilize capital from domestic resources and this is nothing but the first condition of take-off restated. And finally where is compound interest taking us? Import fall back as the economy manages to produce sufficient goods and services for the internal and external markets.
The features are: a Economic Progress: Economic progress became an accepted social value. The fast growth of the leading sectors pulled along less dynamic parts of the economy. Kennedy's administration, Rostow promoted his development model as part of U. Agriculture plays a very important role in this transition process as the surplus quantity of the produce is to be utilized to support an increasing urban population of workers and also becomes a major exporting sector, earning foreign exchange for continued development and capital formation. They have grown accustomed to emphasizing the continuity to historical change, the tracing back to a previous age the forces producing a social explosion and to explaining away the apparent leaps in economic development. Its age prevents it fromtaking into account new technologic and scientific advances that have accelerated developement. The main feature of this stage is rapid, self-sustained growth.
Desai W and Potter R, S. So too, in the age of high mass consumption, a society is able to choose between concentrating on and issues, on and issues, or on developing great for its upper class. One of the key thinkers in twentieth-century Development Studies was W. Rostow would date it as about 60 years after beginning of take-off. Revision Presentation on the Human Development Index.
This stage is referred to as preconditions to takeoff. However, because Brazil is a semi-periphery country, it has a lower percentage of people in the service industry and its income per person is much lower. There is also a second or third pattern in which he said that there was no need for change in socio-political structure because these economies were not deeply caught up in older, traditional social and political structures. The development of one or more substantial manufacturing sectors, with a high rate of growth; 3. His theory was outlined in ''The Stages of Economic Growth'' penned in 1960.