1. MODERNIZATION THEORY
The social differentiation model – N. Smelser (1959)
The economic model
– W. Rostow (1960)

2. Transformation What is modernization? traditional society
Modern society
(increase in technology,
and stable economy)

3. Emulation of Western world
(Westernization of developing countries)
Utilization of more capitals

4. 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

5. Traditional Society (Masyarakat Tradisional)
Limited output in production
Low level of science and technology

6. Fatalistic
Political power is non-centralized

7. 2. The Preconditions for Take-Off (Persediaan untuk Pelancaran)
New initiatives for economic development, education, commerce and trade.

8. 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.

9. 3. The Take–Off Stage (Peringkat Pelancaran)
Agriculture is commercialized
Growth in productivity – agriculture and industries in urban areas

10. 4. The Drive to Maturity (Peringkat Ke Arah Kematangan)
About 20% of GDP is invested in economy
Towards involvement in international economy

11. High use of science and technology
Production is not the outcome of social necessity, but for maximizing profits for international capitalist economy

12. 5. Mass Consumption ( Peringkat Pengeluaran Barang Berkualiti)
Developed country status
Stable economy

13. Production of durable goods
All basic needs are satisfied, and moves to social welfare state.
To pursue military power

14. Question:
How do you apply this theory to Malaysian development?