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Critical Evaluation of Rostow's Modernisation Theory of Development

   

Added on  2021-04-17

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Running head: History and Politics HISTORY AND POLITICSStudents’ NameAffiliate Institution

History and Politics 2Critical Evaluation of Rostow's 'Modernisation Theory' of DevelopmentIntroduction Underdevelopment and development are matters that date back in the days. After the end of World War II, The USA has risen to become a superpower through putting in incredible efforts. Subsequently, the third world countries have been cognizant of colonial rule matters, andcurrently, they pay attention to issues associated with development. In the 20th centuries a critical thinker, economist, government official Walt Whitman Rostow came up with a five-stagedevelopment model that applies to all countries. According to Gilman (2003), the model was significant in that the idea was that countries could develop economically through directing their resources that are low in supply to reach the worldwide market and not the homegrown industries and enhance economic growth through additionally financing development. Rostow took an industrial method as asserted by Andrews and Bawa (2014) and recommended that developed countries have a trend of passing through five stages to rise to their present point of economic development. The primary interest of this essay is to analyze Rostow's 'Modernisation Theory' of Development.Rostow’s (1960) economic growth ( Five-stage Model of Development)The traditional societyAt this stage, the economic system is static, subjugated by subsistence agriculture, characterized by traditional cultivating forms. The traditional step as noted by (Rostow, 2008), describes traditional society as one whose development is based on science and technology that is pre-Newtonian. Rostow observes this stage as absolutely stationary, but a step where there could be an increase through land extension under finding and spread of new crops or

History and Politics 3cultivation. The kind of society pumps most of their resources to agriculture characterized by a structure that is hierarchical hence low vertical and social mobility. The capital stock is of low quality and inadequate causing low productivity of labor. It thus results in leaving a surplus output that’s little to be sold in the local and international markets.The precondition for take-offAt this stage, the investment rates are increasing commencing dynamic development. It ischaracterized by large developments such as a surge in the use of capital in agriculture, mining industries, growth in savings/ investments and need for outside funding. The dimensions are associated with a change from traditional society via the take-off stage. Bracarense (2013) denotes that, there is a change of commercial activities whereby they are broadened to reach the local and global markets, no waste of resources. Surplus obtained from land is used to develop infrastructure, industries, and preparation of development. The objective of this stage is to ensurethat levels of investments are above 5% of the state’s income. Agriculture-related activities play a vital role in the transition and development process.The Take-off StageRostow (2008) points out that at this stage, agriculture assumes a reduced importance andmanufacturing industry greater importance and development of social and political institutions starts. For economic growth, close to 10% of GNP is expected and plowed back for economic development. Rostow describes this stage as short with the onset of industrialization with workers and institutions concentrating on the new industry. The term take-off indicates that national investment proportion must rise from 5 – 10%. Rostow (2008), notes that it also

History and Politics 4demonstrates that the period must be short to show economic revolution characteristics. It must also result in an economic growth that’s self-sustaining and self-generating. The Drive to maturityThis stage takes place when the economy is mature and has the capacity of generating self-sustained development. Growth is self-sustaining at this stage due to activities that create wealth, enhancing further investment in value addition industries and growth. It takes place over extended periods, because, the living standards shoot up, technology use rises, and a state’s economy grows and expands. The country’s economy finds a place in the overseas marketplace and goods that were imported start having a local production with new import requirements being developed (Rostow, 1960). New industries surface such as mechanical engineering, electrical and chemical industries. It is characterized by an increase in economic and social and economic prosperity. There is a decline in population that engages in agricultural activities, and there is a radical change in the country’s international trade. According to Chase-Dunn (2000) nations like Chile are placed on this stage. Chile is capable of meeting the threshold and is capable of being a more developed country. Chile is rapidly growing and in most of the areas andsoon will be at the stage of high mass consumption though it’s less developed in areas of education and health.The Age of high mass consumptionIt is the final stage where sectors that lead in the society changes in the direction of consumers durable goods/ services. It is a stage that is concerned with a high level of outputs, a rise in employment and high consumption of consumer durables (Rostow, 1960). Income development per capita of a country escalates such that consumption basket rises beyond basic

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