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Rostow's Theory of Industrial Development

Human Geography

19

The following information corresponds to Chapter


in your textbook. Understanding history requires that you
identify the causes of past events and determine their effect on history. Usually and event, an idea, or a situation
results from several causes. Underlying causes are long-term, whereas immediate causes lead directly to an event.
Walter Rostow, a twentieth century economic historian, discussed that every society develops according to a
dynamic production pattern that consists of five stages.

How to Determine Cause and Effect:


1. Identify the main point of your study or reading.
2. Determine the underlying causes. For example,
did new ideas cause people to act in a particular
way?
3. Identify the immediate cause(s). For example,
did Britain first industrialize because they had a
surplus of workers from the countryside?
4. Formulate a conclusion about the significance of
the causes and effects of the historical event(s).
Developing the Skill:
Economists often wonder why industrialization
suddenly "takes off" at a particular time and place.
1ead the following excerpt from Walter Rostow's,

The Stages of Economic Growth:


"Now, why Britain? Why not France? ... The French
... were too rough with their Protestants. They were
politically and socially too inflexible, caught up ... in
... a caste society. The best minds and spirits of
eighteenth century France ... had to think about

political, social and religious revolution rather than


economic revolution. Moreover the French were
committed heavily to ground warfare in Europe; and
they cheated on shipping and naval strength ... when
ships mattered greatly ...
Britain alone was in a position to weave together
cotton manufacture, coal and iron technology, the
steam-engine, and ample foreign trade to pull it off."

Applying the Skill:


Answer the following questions using the previous
reading, your text, and the chart below:
1. What were the underlying causes for France's
inability to industrialize?
2. What were some immediate and underlying
causes for G.B. industrializing first? Include one
for each: political, social, economic, ethic.
3. Discuss at least two effects on society through the
process of industrialization.
4. Many nations are past Stage 5. Create your own
column entitled High Technology, depicting the
modern world. Use the chart below as a source.

Rostow's Theorv of Industrial Develo ment


Stage One: The.
Traditional
Socier

"..;~.:.,

.<.:.- '-.

-; v --+~~

;:;

..

-Con"tfinptlon

.,:J~I

beginnings of a
commercial
class w / some
urbanization

increasingly
dominant
entrepreneurial
class

urbanization
increase in skilled
and professional
workers

new middle class


shift to the
suburbs
population growth
stabilizes

centralized
national
government

powerful
factions
encourage
moderniza tion

industrial leaders
are highly
influential

social welfare
more resources for
military & security

rising spirit of
progress and
openness

increased
investment of
capital for profit

resist change,
focus on old
traditions

.Stage~~fve:
Age~&'i
fa:B~ I~:~~$~~s~.
.~~";51

surge of
technology
commercial azr.

hierarchical
social structure

. "'~~~
, .-

rapid expansion
of industry

Stage Four: "


Drive-to
Maturitv.

more use and


production of
durable goods
service sector
dominates (>50%

largely
agricultural
(>75%)
limited
roduction

regionally-based
in the hands of
the landowners

Stage Three:
Takeoff

technology
extends to all
sectors
labor-saving
devices are made

surplus of agr.
& capital
expansion of
trade &
manufacturin

~01itical Pow,er

" 'Stage Two..


Preconditions for
Takeoff <.'

emphasis on
technology
expectation of

rozress

increased
acquisition of
consumer goods

Index of Economic Freedom: Economic freedom is defined as the absence of government coercion or constraint on
the production, distribution, or consumption of goods and services beyond the extent necessary for citizens to protect
and maintain liberty itself. In other words, people are free to work, produce, consume, and invest in the ways they feel
are most productive. To measure economic freedom and rate each country, the authors of the Index study 50
independent economic variables. These variables fall into 10 broad categories, or factors, of economic freedom:

Trade policy

Fiscal burden of government

Government intervention in the economy

Monetary policy

Capital flows and foreign investment

Banking and finance

Wages and prices


Property rights

Regulation

Informal market activity

* Scores range from 80-100 (free), 70-79.9 (mostly free), 60-69.9 (mostly unfree), and 0-49.9 (repressed).
* In 2010, Hong Kong (89.7) was first and North Korea (1.0) was last of 179 countries measured.
** Of particular interest below is the Group of Eight (G-B). The G-8 consists of Canada, France, Germany, Italy, Japan,
the United Kingdom, the United States of America, and the Russian Federation. Altogether, those countries represent
66.5% of the world economy. The impetus for the collaboration of these countries began with the 1973 oil crisis. The
hallmark of the G8 is an annual economic and political summit of the heads of government with international officials.

Worid

6,2,22()

U.S.
China
Japan
Germany
France
United Kingdom
Italy
Brazil
Canada
Russian Federation
India
Spain
Australia
Mexico

14,620
5,745
5,391
3,306
2,555
2,259
2,037
2,024
1,564
1,4,77
1,430
1,375
1,220
1,004

World
Haiti
Burkina Faso
Dem. Rep. of the Congo
Liberia
Sierra 'I. 'IIC
Sudan
Zimbab c

62,220
6.495
8.672
12.600
9.770
2.254
65.930
5.574

" Guinca
Yemen

16.630
105.400
35.650
8.809
30.020

-,

-----------------------

.74,430
14,720
9,854
4,338
2,951
2,160
2,189
1,782
2,194
1,335
2,229
4,046
1,374
890
1,560

74,430"
11.180
20.060
22.920
1.760
4.182
98.790
4.395
29.810
259.330
60.070
14.930
61.880

1).,00.6 '---,

0.6.80

47,400
7,400
34,200
35,900
33,300
35,100
30,700
10,900
39,600
15,900
3,400
29,500
41,300
13,800

11,000
1,300
1,200
300
500
900
2,300
400
800
1,600
1,100
2,400
2,500

0.902
0.663
0.884
0.885
0.872
0.849
0.854
0.699
0.888
0.719
0.519

1'71

',,0:1\

'..J

0.863
0.937
0.750

;',

0;680
0.404
0.305
0.239
0.300
0.317
0.379
0.140
0.349
0.469
0.451
0.431
0.439

122.1 (178

.,

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