Rostows Theory of Economic Development

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  • Topic: Economics, Economic growth, Economic development
  • Pages : 4 (1042 words )
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  • Published : February 22, 2012
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KENYATTA UNIVERSITY
UNIT CODE: UCU 101
UNIT NAME: DEVELOPMENTAL STUDIES
LECTURER: MR. MASINDE
TASK: A DISCUSSION OF THE ROSTOW FIVE STAGES OF DEVELOPMENT

GROPU MEMBERS
NAMEREGISTRATION NUMBERSIGNATURE
NYABUTO MEPHINE BWARIE37/1523/2011……………………… BARAZA A. DANIELE37/1625/2011……………………… LUMONYE FAITH JUMAE35S/11325/2010……………………… DOUGHLAS NYAKUNDIE37/1509/2011……………………… FREDDICK ACHACHE37/1614/2011………………………

Rostow’s five stages of Development
This theory was written by Walt Whiteman Rostow. In 1960 he suggested countries go through fairly linearly and set out number of conditions that were likely to occur in investment, consumption and social trends at each state. He also said that a country undergoes transitional periods at varying lengths so as to acquire a stabilized economy. He came up with five linear stages of development. These stages include: traditional societies, precondition to take off, take off, and drive to maturity and finally the age of mass consumption. Stage 1: Traditional societies

At this stage the economy has a limited production functions thus minimum level of output. However economy’s production level is not static meaning that output level can be increased through cultivation of land. This stage is characterized by existence of an upper hand that would never be crossed due to lack of application as well as constant development of modern science and technology. The economy in this stage is dominated subsistence activity where output is consumed by producers rather than traded. Any trade carried out is barter and the main activity is agriculture. This stage also employs traditional methods of production i.e. labor intensive and limited capital. During this stage these were numerous changes in population due to war, famine and epidemic such as plagues. Volume fluctuation in was evident due to political instability. Stage 2: Pre conditions to take off / Transitional stage

At this stage...
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