1 / 11

Walter Rostow (1916- 2003)

Rostow’s Stages of Economic Growth. Walter Rostow (1916- 2003). In 1960, the American Economic Historian, W. W. Rostow, suggested that countries passed through five stages of economic development. 5. 4. 3. 2. 1. Stage 1 – Traditional Society

dinos
Download Presentation

Walter Rostow (1916- 2003)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Rostow’s Stages of Economic Growth • Walter Rostow (1916- 2003)

  2. In 1960, the American Economic Historian, W. W. Rostow, suggested that countries passed through five stages of economic development. 5 4 3 2 1

  3. Stage 1 – Traditional Society • The economy is dominated by subsistence activity where output is consumed by producers rather than traded. • Any trade is carried out by bartering where goods are exchanged directly for other goods. • Agriculture is the most important industry and production is labor intensive • E.g. nomadic tribe in Papua New Guinea ??

  4. Stage 2 – Preconditions for Takeoff • A time to transform a traditional society in the ways necessary for it to exploit the fruits of modern science • E.g. Sudan

  5. Stage 3 – Takeoff • Rapid increase in modernization and expansion • Industries lead the way (the stuff makers…) • Increase in literacy and education, health care and life expectancy • E.g. China

  6. Stage 4 – Drive To Maturity • The economy diversifies into new areas • Technological innovation provides a diverse range of investment opportunities. • The economy is producing a wide range of goods and services and there is less reliance on imports. • E.g. Russia

  7. Stage 5 –Age of High Mass Consumption • Service sector flourishes (restaurants, massage, chiropractors, doctors) • Collection of material goods (“stuff”) • E.g. Canada

More Related