Economic Development and Rostow's Stages
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Questions and Answers

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?

  • Traditional Society (correct)
  • Take-off
  • Stage of Mass Consumption
  • Preconditions for Take-off
  • 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.

    <p>False</p> Signup and view all the answers

    What does sustainable economic development ensure?

    <p>That the needs of a particular generation are fully met without endangering the ability of future generations to meet their own needs.</p> Signup and view all the answers

    What happens during the 'Stage of Mass Consumption'?

    <p>There is a significant increase in quantity and quality of products.</p> Signup and view all the answers

    Who proposed the five stages of economic development?

    <p>Walt Whitman Rostow</p> Signup and view all the answers

    What are the five phases of economic development according to Rostow?

    <p>Tradition Society</p> Signup and view all the answers

    What is considered the main characteristic of Tradition Society?

    <p>A subsistence agricultural-based economy with intensive labor and low investment</p> Signup and view all the answers

    In the Take-Off stage, agriculture assumes greater importance.

    <p>False</p> Signup and view all the answers

    During the Dive to Maturity phase, the economy is able to reinvest _____ of what it creates.

    <p>10 to 20%</p> Signup and view all the answers

    What happens during the Stage of Mass Consumption?

    <p>The quantity and quality of products and services increase, and the economy can export productions.</p> Signup and view all the answers

    What is a key characteristic of economic development?

    <p>Improvement of people's lives</p> Signup and view all the answers

    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.

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