1. ROSTOW’S “MODERNIZATION” MODEL OF DEVELOPMENT By: Sania Asghar & Citlalli Cisneros

2. Short Background ◦ W.W. Rostow, who in the1950’s, proposed a 5-stage model that showed the stages of economic growth. This became one of the most historical models. ◦ This model was most commonly used in the 1960’s to the age of decolonization and used to explain and predict countries patterns of economical development.

3. What is Rostow’s “modernization” Model of Development? ◦ It is a model that divides a country into 1 of the 5 stages according to its growth. This is very similar to the demographic transition model. The 5 stages are ◦ 1. Traditional society ◦ 2. The precondition for takeoff ◦ 3. The takeoff ◦ 4. The drive to maturity ◦ 5. The age of mass consumption

4. 1. Traditional Society ◦ This is the first stage of Rostow’s “modernization” model, in this stage a country has not started the process of development. ◦ The percentage of agricultural workers is very high and so is the percentage of national health. ◦ The country is resistant to change and tends to practice old traditions ◦ They rely on barter systems. ◦ Many people are very religious and are involved in the military. Example: Mulan, in this movie most people were subsistence farmer. Mulan and her family were very religious and her father was called into the military even though he was already very old.

5. 2. The precondition for Takeoff ◦ In this stage the process of development begins. ◦ The economic activities are influenced by a group or leader. These help the country start to invest in new technology, infrastructure, water supplies, and transportation. ◦ The start of some urbanization. ◦ This results in an increase in productivity. Example: If a government motivates its population to start economic growth by building banks and currency.

6. 3. The Takeoff ◦ Rapid expansion of industry, industrial growth may be linked to primary industries. ◦ Surge of technology and commercial agriculture, agricultural workers decrease and more secondary sector jobs with tech advances. ◦ Rapid urbanization and migration of people. ◦ In some places people still stick to traditional practices. ◦ Govt. encourages modernization.

7. 4. Drive to Maturity ◦ Technology extends to all sectors, more machinery (modern technology). ◦ Diffusion of a variety of industries, increase in skilled and professional workers, industrial leaders are very influential. ◦ Migration of people into urban areas. ◦ Growth begins to become self sustaining.

8. 5. The age of mass consumption ◦Service industries are dominant in the economy, services include banking, insurance, marketing, entertainment, etc. ◦More resources for military and security. ◦ Middle class families shift to the suburbs (urban areas), stabilized population growth. ◦ Increase in use and production of consumer goods.

9. Development stages of LDCs and MDCs ◦ MDCs (more developed countries) are in stages 4/5 of Rostow’s “modernization” model. ◦ LDCs are in one of the three earlier stages. ◦ All countries develop differently, development is based on economic structural change like- investment, substitution of capital for labor, technology transfer, large-scale industrialization projects, etc., ◦ LDCs should follow in the “steps” of economically powerful countries in order to develop. ◦ LDCs are limited by economic and political relationships with MDCs.

10. What factors helped develop this model? ◦ One factor was the desire to make Western Europe and Anglo America more developed. ◦ The second factor was because of the fact that LDCs had an abundant supply of raw materials, these materials could benefit MDCs but this caused MDCs to control LDCs economy. ◦ In global economies, the sale of raw materials could generate funds for LDCs which then promoted development.