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What are the five stages of economic development?
What are the five stages of economic development?
Traditional Society, Preconditions for Take-off, Take-off, Drive to Maturity, Stage of Mass Consumption
Which stage of economic development emphasizes a subsistent agricultural-based economy?
Which stage of economic development emphasizes a subsistent agricultural-based economy?
The stage characterized by reinvestment of 10 to 20% of production is called the ______.
The stage characterized by reinvestment of 10 to 20% of production is called the ______.
Drive to Maturity
In the 'Take-off' stage, agriculture becomes more important than manufacturing.
In the 'Take-off' stage, agriculture becomes more important than manufacturing.
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What does sustainable economic development ensure?
What does sustainable economic development ensure?
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What happens during the 'Stage of Mass Consumption'?
What happens during the 'Stage of Mass Consumption'?
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Who proposed the five stages of economic development?
Who proposed the five stages of economic development?
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What are the five phases of economic development according to Rostow?
What are the five phases of economic development according to Rostow?
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What is considered the main characteristic of Tradition Society?
What is considered the main characteristic of Tradition Society?
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In the Take-Off stage, agriculture assumes greater importance.
In the Take-Off stage, agriculture assumes greater importance.
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During the Dive to Maturity phase, the economy is able to reinvest _____ of what it creates.
During the Dive to Maturity phase, the economy is able to reinvest _____ of what it creates.
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What happens during the Stage of Mass Consumption?
What happens during the Stage of Mass Consumption?
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What is a key characteristic of economic development?
What is a key characteristic of economic development?
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Study Notes
Economic Development
- It encompasses economic growth and an increase in goods and services produced by a country's economy.
- It considers social, political, cultural, and spiritual factors.
- It emphasizes improvement in people's lives.
- Sustainable economic development prioritizes meeting current generation's needs without compromising future generations' ability to meet their needs.
Rostow's Stages of Economic Growth
- Proposed by Walt Whitman Rostow in 1960.
- A model that illustrates the intersection of economics, geography, and politics.
- Major historical growth model.
5 Phases of Economic Development
Traditional Society
- Prevalent before the 1700s.
- Societies operated in a relatively stable state with minimal productivity fluctuations.
- Relied heavily on agricultural labor due to the need for sustenance.
- Technology was limited, and trade existed.
Preconditions for Take-off
- Transitional phase between traditional society and take-off.
- The society establishes preconditions for economic growth.
- Progressive elements emerge, leading to economic progress.
- Investments rise, agriculture becomes mechanized, and output increases.
- It is described as "prerequisites for rapid economic growth," serving as a bridge between traditional and industrial economies.
- Development of infrastructure, such as roads and highways, and machinery.
Take-off
- Stage of dynamic economic growth or a short period of intensive growth.
- Manufacturing industry gains importance, but the number of industries remains small.
- Agriculture becomes less significant, despite a majority of the population remaining employed in the farming sector.
Drive to Maturity
- A 60-year period between take-off and the final stage of mass consumption.
- Economies reinvest a significant portion (10-20%) of their output into production.
- Improvements in quality of life, technology, and new ideas become crucial for societal advancement.
Age of Mass Consumption
- Characterized by increased quantity and quality of products and services.
- Countries in this stage can export production, bringing in revenue from other countries and fostering economic growth beyond domestic consumption.
- Flourishes in a capitalist system with mass production and consumerism.
- People have more leisure time due to improved per capita income and living standards.
- National income and investments rise significantly, exceeding 20%.
Economic Development
- It includes economic growth and increased production of goods and services.
- Considers social, political, cultural, and spiritual aspects.
- Focuses on improving people's lives.
- Sustainable development ensures fulfilling current needs without compromising future generations' ability to meet their needs.
Rostow's Stages of Economic Growth (1960)
- A well-known theory that combines economics, geography, and politics.
- A major historical growth model.
5 Phases of Economic Development
-
Traditional Society:
- Prevalent before the 1700s.
- Societies operate in a stable state with little change in productivity.
- Heavily reliant on agricultural labor.
- Limited technology.
-
Preconditions for Take-Off:
- A transitional phase between traditional society and take-off.
- Establishment of preconditions for take-off.
- Growing investment and mechanization in agriculture.
- Increasing trade.
-
Take-Off:
- Stage of dynamic economic growth.
- Manufacturing gains importance.
- Agriculture becomes less significant.
- Technological breakthroughs occur.
- Political and social institutions develop.
- Investment exceeds 10%.
- Urbanization and industrialization increase.
- Dual economy emerges.
-
Drive to Maturity:
- 60-year period between take-off and mass consumption.
- Reinvestment of 10-20% of production.
- Improvement in quality of life, technology, and new ideas.
- Production for survival becomes less significant.
- National economic growth and diversification.
-
Stage of Mass Consumption:
- Increased quantity and quality of goods and services.
- Countries export products, generating income.
- Economic flourishing under a capitalist system.
- Mass production and consumerism.
- High per capita income and standard of living.
- Increased leisure time.
- Investment exceeds 20%.
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Description
Explore the concept of economic development, focusing on the growth, social factors, and sustainable practices that shape a nation's economy. Learn about Rostow's Stages of Economic Growth, a pivotal model that connects economics with historical and political contexts. This quiz encompasses the key phases of economic development from traditional societies to modern growth.
