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Copy of W.W. Rostow's Stages of Development, Explained
Transcript of Copy of W.W. Rostow's Stages of Development, Explained
The Six Stages of Economic Development According to W.W. Rostow
A traditional society is developed within limited production functions. People in this country don't know how to use technology and science with no output products. The landowners control those lands, such as in Medieval Europe.
First Stage: The Traditional Society
The Traditional Society
The Preconditions For Take-Off
The Drive to Maturity
The Age of High Mass-Consumption
These stages try to help countries to get more developed in this society. Now, Let's look at each of stages to find out how it works for our life. Each of them has an individual process.
People started to exploit the food and began to create new production functions in agriculture and industry. Some institutions appear at that moment. The traditional society persisted with modern economic activites of limited purposes. For instance, in Western Europe of the late seventeenth and early eighteenth centuries as the insights of modern science.
Second Stage: The Preconditions for Take-Off
Third Stage: The Take-Off
The old blocks and resistances keep steady growth.
The rate of effective investment and savings rise from 5% of income to 10% or more. Agriculture productivities and the essential condition are increased. For example, the take-off of Britain to the two decades after 1783; France and U.S to the several decades preceding 1860; Japan, fourth quarter of the ninteenth century; Russia and Canada the quarter-century; India and China in 1950's.
In this stage, the economy is beginning to diversify into secondary and tertiary sectors, with less than twenty percent of the population working in agriculture. The state is able to devote between ten and twenty percent of its earnings to investments, and the general quality of life is improved.
Fourth Stage: The Drive to Maturity
Fifth Stage: Age of Mass Consumption
In this stage, the state's priorities have shifted. No longer concerned solely with subsistence, the economy has a chance to diversify even more, and continues to focus on producing better goods and services for the wealthy to enjoy. With little worry about economic survival, the state is able to concentrate its efforts on national security and the military. The U.S. is said to be the first to achieve development at this stage, followed by Western Europe and Japan in the 1950s.
The Industrial Revolution was a point in time in which the economies of Western Europe and the United States were diversifying.
After the final stage, there is a projection explained by Rostow. It is believed that as the generations proceeding the baby boom mature, they will have been conditioned to regard consumption as an in escapable part of life. However, a more realistic way of explaining this would show that our spending habits have not shifted much, if it all. In this stage rather, consumerism ceases to be the main focus because goods are so readily available that a high rate of consumption is no longer a choice.
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There you have it, W.W. Rostow's Six Stages of Economic Growth. As one can observe, the Most Developed Countries (MDCs) today are mostly in the fifth or sixth stage. However, many states in the world continue to subsist at the more traditional stages and struggle to sustain their own people, let alone participate in the international economy.
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