No country in the world ever be poor or rich forever. Poor or “third world” countries always aspire to be developed. To realise the fruit of economic growth, they follow or adopt certain strategies or models. Rostow’s five stages economic growth model that has been much debated and discussed is one of them. So, proper understanding stages of economic growth model penned by Rostow, seems important.
Who was Walt Whitman Rostow?
Born in 1916, he was an American political theorist, economist, an advisor to the president L. B. Johnson and John F. Kennedy, Rostow wrote his famous five stages of economic growth model in 1960.
Ideas and assumptions of Walt Whitman Rostow
Ideologically, he was anti-communist and adovocated the developmental ideas followed in western economies. He asserted that the path followed by USA and other western developed nations is fit for those who are in the initial stage of development.
Also, he assumed that liberal democratic and capitalist industrial economies have better potential in growth than those having communist and authoratrian regimes. Undoubtedly, he was in favour of capitalism amidst the cold war.
Most importantly, he argued that poor countries couldn’t grow on theirs own capabilities and they need external aid and assistance from developed nations. So, he suggested that developed nations should help poor or third world countries to bring them on the path of development.
Later, most of the developed nations used this tools to cast influence on others by providing aid and developmental assistance. In short, they inspired by the ideas of Rostow and make his model as foreign policy instrument.
Rostow’s five stages economic growth model
As I mentioned before that he suggested that poor countries have to adopt or follow the five stages economic growth path to be developed. Because, he assumed that development model applied in western world is relevant to the other poor countries.
In 1960, he came up with five stages economic growth model to guide nations on the path of growth. In his model, he presented five stages including, traditional society, precondition to take-off, take-off stage, drive to maturity, and age of high mass consumption.
For each stage, he described major characteristics, and claimed that by he suggested means and ideas, the poor aspiring nations could transform theirs economies as developed. So, let’s begin understanding stages of economic growth.
First stage of Rostow’s five stages economic growth model — Traditional society
Here are the major characteristics of traditional society of Rostow. Transition begins with the awareness and influence from external world. Simply put, intent for development begins.
Subsistent and agricultural economy
As of his views, traditional society stage largely characterized by agricultural subsistent economy in which emphasis is given on basic livelihood instead of living standards.
Farmers rely on intensive labour force rather than technology induced mechanisation. Low productivity and inefficient usages of resources results in less surplus; so the level of trading.
Obviously, due to technological backwardness, people doesn’t have scientific temper and believe in traditional beliefs and mindset.
At the time of he penned his model, he gave examples of Chinese dynasties, the civilisations of the Middle East and the Mediterranean as well of medieval Europe.
Nowadays, it is too difficult to conclude but, tentatively speaking, some African, central American and south Asian nations may categorized in first stage of model.
2. Pre-condition to take-off–second stage of model
This stage sets the foundation for the take-off stage as per the model of Rostow. It is characterized by the development of manufacturing activities, and there is more exposure to modernization.
Unlike traditional society where people hardly think about outside world and used to rely on subsistent economy, in the pre-condition to take-off stage manifests some national and international outlook.
Preciously, in the first stage, there is influence of external world and market. In this stage, commercialization and infrastructure development gain momentum. Moreover, class stratification begins to emerge.
Clearly, pre-condition to take-off stage is nothing less than launching pad for the upcoming industrialization.
Third stage of economic growth model of Rostow–Take-off stage
Take-off stage is the third stage of Rostow’s five stages economic growth model. As per his words, in this stage, nation begins to experience short term intensive growth.
In detail, industrialization begin to flourish after pre-condition to take-off. Migration begins, and workers and institutions become concentrated around a new industry. Besides, use of technology, resources and structural changes are noticed.
Investment in manufacturing sector rises around 10 percent of GDP. At the same time, modern institutional framework like social, economic, and political institutions emerge.
Fourth stage of economic growth–Drive to Maturity
As per Rostow, fourth stage prevails over long period of time. In the third stage, industrialization begin to flourish.
Expectedly, in this stage, use of technology increases considerably. People experience improvement in the standards of living with better wages and facilities precipitated by structural transformation of economy.
Eventually, growth in GDP rises, economy grows, and division of labour become visible. In other words, economy begins to expand and diversify.
At the present, Republic of China, India, Brazil, South Africa, etc.countries are characterized by the fourth stage of economic growth model.
Age of mass consumption–fifth stage of economic growth model
Age of High Mass Consumption indicates that economy develops and flourishes in a capitalist system. Mass consumption and production become characteristic features. Higher per Capita income, life expectancy, and higher standards of living people enjoy.
Nearly, as per Rostow, all the developed, capitalist, and industrial liberal democratic nations are categorised in this stage.
Though Walt Whitman Rostow was advocate of liberal democratic and capitalist industrial western system, his model was one of the best masterpiece of development theories in the twentieth century.
However, it is not free from loopholes and shortcomings. Let’s see the critics views on the Rostow’s five stages economic growth model.
Criticism of the Rostow’s five stages economic growth model
Unquestionably, scholars and critics of his model openly opposed that the development path of US and Europe can be applied in letter and spirit in the other nations. Further, they also criticised Rostow for his pro western and anti communist regimes.
Top down vs bottom up development approach
Second, Rostow in his model emphasised external stimulus for the poor countries initially. As per critics, this is like trickle down effect and Rostow undermined the role of local efforts to develop economy. Many nations begin to develop on their own capabilities instead of external aid and assistance.
Different circumstances in different nations
Third, five stages economic growth path looks so ideal. They challenged Rostow by the idea that nation in the course of growth might skip one or more stages. So, it is unlikely for nations to follow this path.
Fourth, the scale of development can’t be similar for everyone. Because, the degree of development depends upon the host of factors like human resource, natural resources, capital, population, market etc.
Fifth, there are other counter arguments like obstacles to development, environmental limitations, and geographical and historical facts and backgrounds.
Last words on understanding stages of economic growth
So far, we have learnt about the Rostow’s five stages economic growth model and its criticism. In which circumstances he presented his model is also important as it has a strong bearing on this model. I also highlighted the ideas and assumptions of Rostow that helped to shape his masterpiece.
Actually, it is too difficult to imagine that only one model is enough to guide every nation on growth path. There are bulk of factors that may determine the nature of growth and development such as geographical and historical factors, government regimes and available resources, etc.Though his model isn’t only one in the development studies, but surely, one of the best as it has still applicability.
This is all about the understanding stages of economic growth model proposed by Walt Whitman Rostow in the twentieth century. Now, let’s take a look at the solved questions on this model.
Solved questions on Rostow’s five stages economic growth model
For layman’s understanding about this complicated model, this is a set of solved questions. Just have a look at these questions.
Q. 1. Who was Walt Whitman Rostow?
Ans: He was an American economist and political theorist. He proposed five stages of economic growth model in 1960. Ideologically, he was anti-communist and advocate of democratic liberal democratic system. And, he was an advisor to the president L. B. Johnson and John F. Kennedy
Q. 2. Give short summary of his assumptions.
Ans: According to Rostow, the development path of western world could be copied to other countries. He asserted that poor countries need external stimulus to begin growth journey. He was in favour of capitalism and liberal democratic system. Further, he was against the bottom up approach in which nation tries to grow on its own capabilities.
Q. 3. What is five stages economic growth model?
Ans: Rostow penned his five stages economic growth model in 1960, and it is one of the best model in the twentieth century in development studies.
He suggested that poor countries have to follow the five stages linear growth pattern that once used in western world.
In his model, he proposed five stages like traditional society, pre-condition to take-off, take-off stage, maturity to drive, and age of high mass consumption.
Q. 4. Why did Rostow receive criticism?
Ans: Rostow received criticism from various scholars and critics for his top down or trickle down developmental approach. Second, He was being criticised for his bias to western world. Besides, he forget to consider the factors that are the obstacles to development. Finally, he was challenged for his idea that single model is applicable for every nation in letter and spirit.
Q. 5. Why is his model still relevant?
Ans: Even though his model has some bottlenecks and shortcomings, it is still applicable at certain level. Even now, most of the nations follow his growth path though not exact. So, Rostow needs due respect for his historical masterpiece.
I hope that my article about “Understanding Stages of economic growth” will become cause of your learning about Rostow and his model.
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