1. ROSTOW’S MODEL OF ECONOMIC DEVELOPMENT

3. Transition is triggered by external markets and influences
TRADITIONAL SOCIETY
*LIMITED TECH.
*STATIC SOCIETY
Burkina Faso, Malawi

4. An elite group initiates innovative economic activities
PRE-CONDITIONS
FOR TAKEOFF
An elite group initiates innovative economic activities
Exploitation of agriculture and extractive industries
Honduras, Malaysia

5. TAKE-OFF Development of a manufacturing sector China, India, Mexico
Development of modern social, economic and political institutions

6. DRIVE TO MATURITY
Development of a wider commercial and industrial base
Hungary, S. Korea
Investment in manufacturing exceeds 10%
Exploitation of advantages in international trade

7. AGE OF MASS CONSUMPTION
Economy shifts from heavy industry to consumer goods
USA, Japan, Germany

8. Problems with Rostow’s model:
*overly simplistic
Myth of development that every country will reach stage five.
Early starters can’t be compared to late starters – (early starters achieve stage five by exploiting late starters.)
Built upon a European model.