Rostow's Theory Of Economic Growth

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2 Rostow’s theory of economic growth (or Rostovian take-off model), is historically one of the major models of economic growth. Published in 1960 by American economist Walt Whitman Rostow, the model dictates that economic growth occurs in five stages of fluctuating time periods. The five stages include 1) the traditional society, 2) the preconditions for take-off, 3) the take-off, 4) the drive to maturity, and finally, 5) the age of mass production. The following definitions were established by Walt Rostow in his book published in 1960, The Stages of Economic Growth. The first stage, the traditional society, describes countries where the population is still actively engaged in agricultural practises, therefore eliminating any time available to undertake major economic and entrepreneurial risks. The technology and science in use is also described as ‘pre-Newtonian’. Examples of such societies include Medieval Europe and Chinese dynasties. The second stage, preconditions for take-off, is explained as encompassing nations with a more stable political base. This stage was clearly established in Western Europe in the late seventeenth century and early eighteenth century, as scientific advancements and continued industrialisation had aided agriculture and the capital market to thrive. The next stage is the actual take off stage, where new industries appear and agriculture is being commercialised. Steady growth is evident through the exploitation of natural resources,
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