MODERNIZATION THEORY The social differentiation model – N. Smelser (1959) The economic model – W. Rostow (1960)
Transformation What is modernization? traditional society Modern society (increase in technology, and stable economy)
Emulation of Western world (Westernization of developing countries) Utilization of more capitals
Development Theory by W Development Theory by W. Rostow (1960) (This model is based on the economy of United Kingdom) 2 1 3 4 5 Time Economic Growth
Traditional Society (Masyarakat Tradisional) Limited output in production Low level of science and technology
Fatalistic Political power is non-centralized
2. The Preconditions for Take-Off (Persediaan untuk Pelancaran) New initiatives for economic development, education, commerce and trade.
Increases in investment in commercialization of raw materials/commodities. Presence of ‘dualistic society’ – the gap between the rich and the poor, and between regions is high.
3. The Take–Off Stage (Peringkat Pelancaran) Agriculture is commercialized Growth in productivity – agriculture and industries in urban areas
4. The Drive to Maturity (Peringkat Ke Arah Kematangan) About 20% of GDP is invested in economy Towards involvement in international economy
High use of science and technology Production is not the outcome of social necessity, but for maximizing profits for international capitalist economy
5. Mass Consumption ( Peringkat Pengeluaran Barang Berkualiti) Developed country status Stable economy
Production of durable goods All basic needs are satisfied, and moves to social welfare state. To pursue military power
Question: How do you apply this theory to Malaysian development?