These are barriers which may make developing countries unattractive to investors. Lack of infrastructure Lack of skills in the work force Political instability Lack of capital in the country See the next sheet for details of modernisation theory Modernisation Theory 2:
Firstly it will define the key concepts such as education and modernization theory. Definition of Rostows theory According to Kelly The term modernization theory refers to a theory which states that development in developing worlds can be attained through following the processes of development that are used by currently developed nations Rostow, It is a social economic theory which is sometimes known as the development theory.
It usually highlights the positive role played by those countries that are developed in modernizing and facilitating sustainable development in those countries that are less developed and it often contrasted to dependency theory.
This means that for development to occur in underdeveloped countries there is need for developed countries provide aid to developing countries to enable them learn from their own progress.
It looks at the state to be the central actor in bringing about modernization in societies that are backward. The theory also believes that underdeveloped countries could grow faster than developed countries and catch up and that it was possible for equal development to be reached between the underdeveloped and developed countries Hollis and Robinson, Rostows theory of modernization development Therefore Walt Rostow postulated a five stage model of development that will be able to apply to all the countries.
It is important to understand that this stage of development is concerned with societies that have a pre scientific understanding of gadgets Hollis, This means that the society that the people in such a society are in a condition of fatalism and denies that people could change their living condition because their minds are magical, mystical and non historical in the sense that they will not be able to dig to find out how to change or improve their wellbeing.
They believe that things such as goods come into being by divine forces rather than the intervention of man or ingenuity.
It is also important to understand that the states as well as the farmers in traditional society are aware of the various irrigation methods and the expansions in order to improve agricultural output levels. This means that in traditional society consists of some technological innovations but only exists in ad hoc basis that is for a particular purpose Todaro and Smith, There have always been a barrier in traditional society which could not be crossed or overcome and this was due to lack of knowledge or application and constant Rostows theory of modern science and technology.
There is also a challenge in the changes of the size of population, quality of life or the social economic development because of the wars, famines due to crop failures, earthquakes, and epidemics such as plague and trade fluctuations due to trade stability or instability.
The manufacturing sector and industries in tradional society had a tendency to grow but had always been limited by the inadequate scientific knowledge and backward frame of the minds which resulted into low labour productivity Carmody, There is also massive concentration of political power in the hands of land owners and the social structure is feudalistic in nature.
Economic Growth The second stage of development or economic growth is called the pre condition for takeoff whose economy undergoes a process of change for building up of conditions for growth and takes off.
Rostow asserts that the changes in this stage the society and the economy are fundamental in nature in the socio political structure and production technique.
It is characterized by the massive development of mining industries, increase in capital use in agriculture, necessity of external funding and some growth in savings and investments. It also consists of certain dimensions that are associated with this transition from traditional society through the conditions to the take off phase.
For example there is a shift from agrarian to industrial or manufacturing society, trade and other commercial activities are broadened to reach not only local markets but also international markets and there is no wasteful of resources or the surplus attained by the land owners is used to develop industries, infrastructure and preparation of self sustained growth or development Hollis and Robinson, It is the stage in which agriculture is commercialized and mechanized to bring about technological advancement and growth in entrepreneurship activities.
The agricultural activities play an important role in the process of transition or development. Take off The third stage is called the take off stage of development which is sometimes called the economic take off. It is characterized by dynamic economic growth which is due to sharp stimulus of economic, political or technological in nature.
The main focus of this stage is the aspect of self sustained growth.
It is also referred to be an interval when the old blocks and resistance to steady growth have been removed Rostow, It is important to understand that this stage occurs whenever the sector led growth becomes common and society is driven more by economic processes than traditions.
The growth or economic progress becomes a normal trend or situation in these societies because those factors that were affecting or limiting growth are removed. There is an increase in industrialization, further growth in savings and investments and there is a decline in the number of employees in agriculture and there is an increase in entrepreneurship Hollis and Robinson, It is also important to understand that once take 3 off has taken place a country will take as long as fifty to one hundred years to reach maturity as was the case with the industrial revolution.
Drive to maturity The fourth stage after the take off stage is the drive to maturity which is concerned with the extension of modern technology over other sectors of the economy or society.
Drive to maturity stage refers to the period when a country has affectively applied the range of modern technology to the bulk of its resources Rostow, In this stage growth becomes self sustaining in the sense that wealth generation activities enables further investment in value adding industry and development.
It is important to understand that during this stage the economy finds its place in the international economy and those goods that were imported begin to be produced locally and new requirements for import are developed Todaro and Smith, It is generally an improvement on the take off whose economy focused relatively on narrow complex of industry and technology and the economy of the maturity stage extends its range into a more refined and technologically often more complex processes.
High mass consumption The fifth and final stage is called the age of high mass consumption were the leading sectors in the society shift towards durable consumers goods and services. The consumers focus on durable goods and hardly remember the subsistence activities of other stages. Preston asserts that this stage is concerned with the high output levels, mass consumption of consumer durables and increase in employment in the service sectors.
It is characterized by an increase in per capita income, changes in the structure of the working force including those working in the offices or factories and an increase in the desire to benefit from the consumption fruits of a mature economy.
Gustav adds that due to the economic changes the society ceases to accept further extension of modern technology as an overriding objective but increases allocation to other social activities.
In this age of high mass consumption the society is able to choose between concentrating on military and security issues, on equality and welfare issues or developing luxuries for its upper class.Economic growth, the process by which a nation’s wealth increases over time. Although the term is often used in discussions of short-term economic performance, in the context of economic theory it generally refers to an increase in wealth over an extended period.
G-DAE Working Paper No. “Basic Principles of Sustainable Development” 1 This paper will appear in The Encyclopedia of Life Support Systems, sponsored by the United Nations Educational, Scientific, and Cultural Organization (UNESCO). Rostow's Stages of Economic Growth model is one of the major historical models of economic initiativeblog.com was published by American economist Walt Whitman Rostow in The model postulates that economic growth occurs in five basic stages, of varying length: Traditional society.
Evaluation of Rostow's Five Stages of Economic Growth Model. There is overlap with the Harrod-Domar model i.e.
stages 2 and 3 require increased saving and investment; The theory does not account for exceptions, e.g. falling output in the USSR under a communist regime; the corrupt and failing government in Zimbabwe has reversed development. Development theory Rostow's five-stage model of development and ist relevance in Globalization Essay School of Social Science Faculty of Education and Arts.
Extracts from this document Introduction GLOBALIZATION THE CONCEPT OF GLOBALIZATION Globalization is defined as the increasing process of interdependence and interconnected between different political, social and economic components of the world.