Rostow's stages of

growth

(October 7, 1916 February 13, 2003) was a

United States economist and political theorist
who served as Special Assistant for National
Security Affairs to U.S. President Lyndon B.
Johnson in 196669.

Assumption
The basic assumption given by
Rostow is that countries want to
modernize and grow and that society
will agree to the materialistic (is the
excessive desire to acquire and
consume material goods.)norms of
economic growth

Stage I : Traditional society

characterized by subsistence* agriculture
or hunting and gathering
* Subsistence agriculture is selfsufficiency farming in which the
farmers focus on growing enough food
to feed themselves and their families.
Trade is predominantly regional and local,
largely done through barter
Wars, famines, political instability
trading was subject to great risk and
transport of goods and raw materials was

Stage II : Pre-conditions to
"take-off"
Signs of the preconditions for takeoff are growing

acceptance of technology, a rapidly increasing

population, the growth of education, rise of
banks, and the growing efficiency of farming
external demand for raw materials initiates economic
change;
development of more productive, commercial
agriculture and cash crops not consumed by producers
and/or largely exported
widespread and enhanced investment in changes to
the physical environment to expand production (i.e.
irrigation, canals, ports)
increasing spread of technology and advances in
existing technologies
individual social mobility begins

Stage III : Take off

Takeoff occurs when the bulk of society has
come to accept and favor the idea of
change.
Widespread diffusion of literacy which
results from compulsory education
Urbanization increases, Industrialization
proceeds, Technological break through
occurs
Health care improves and life expectancy
increases
Number employed in agriculture declines.
Low level technology

Stage IV : Drive to maturity

Technology gradually spreads throughout all
areas of economic activity
diversification of the industrial base; multiple
industries expand and new ones take root
quickly
manufacturing shifts from investment-driven
(capital goods) towards consumer durables
and domestic consumption
rapid development of transportation
infrastructure
large-scale investment in social infrastructure
(schools, universities, hospitals, etc.)

Stage V : Age of mass

consumption
During this age, the leading sectors shift more

toward services more toward services, especially

those of finance, information and government
Material production continues, social welfare
becomes a higher value, and people talk of the
quality of life rather than of the standard of living.
widespread and normative consumption of highvalue consumer goods (e.g. automobiles)
consumers typically (if not universally), have
disposable income, beyond all basic needs, for
additional goods
Service industry dominates the economy
banking, insurance, finance, marketing,
entertainment and so on.