Rostow model

Here, a country's economy flourishes in a capitalist systemcharacterized by mass production and consumerism.

Relevance of rostows model

There is a desire to develop an egalitarian society and measures are taken to reach this goal. During this stage a country has to decide whether the industrial power and technology it has generated is to be used for the welfare of its people or to gain supremacy over others, or the world in toto. The model asserted that all countries exist somewhere on this linear spectrum, and climb upward through each stage in the development process: Traditional Society: This stage is characterized by a subsistent, agricultural based economy, with intensive labor and low levels of trading, and a population that does not have a scientific perspective on the world and technology. A prime example of a country in the Drive to Maturity stage is South Africa. Activities in the key sector should induce a chain of growth in other sectors of the economy, that also develop rapidly. Continue Reading. The theory does not account for exceptions, e. Agriculture becomes more mechanised and more output is traded. Government plays the driving role in development of social overhead capital as it is rarely profitable, it has a long gestation period, and the pay-offs accrue to all economic sectors, not primarily to the investing entity; thus the private sector is not interested in playing a major role in its development. 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. Industrialization becomes a crucial phenomenon as it helps to prepare the basic structure for structural changes on a massive scale.

This assumption is questioned due to empirical evidence of many countries making 'false starts' then reaching a degree of progress and change and then slipping back. This rise in investment rate depends on many sectors of the economy.

Rostow's model illustrates a desire not only to assist lower-income countries in the development process but also to assert the United States' influence over that of communist Russia. In spite of the many critiques of Rostow's model, it is still one of the most widely cited development theories and is a primary example of the intersection of geography, economics, and politics.

Singapore, for instance, has one of the world's busiest trading ports, but this would not be possible without its advantageous geography as an island nation between Indonesia and Malaysia. Furthermore, agriculture becomes commercialized and mechanized via technological advancement; shifts increasingly towards cash or export-oriented crops; and there is a growth of agricultural entrepreneurship.

These countries are ranked lowest in terms of the Human Development Index - many of these low-income countries remain heavily dependent on primary commodities. Output levels grow, enabling increased consumer expenditure.

advantages of rostows theory of development
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Rostow's Stages of Economic Growth and Development