Rostow's Stages of Growth Development Model

The economist's 5 stages of economic growth are oft criticized

Share
Flipboard
Email
Lbj & Walter Rostow Look At Papers
LBJ and Walter W. Rostow. Bettmann Archive / Getty Images
by
Juliet Jacobs
Updated May 28, 2019
Geographers often seek to categorize places using a scale of development, frequently
dividing nations into the "developed" and "developing," "first world" and "third world,
" or "core" and "periphery." All of these labels are based on judging a country's develo
pment, but this raises the question: what exactly does it mean to be "developed," and
why have some countries developed while others have not? Since the beginning of th
e twentieth century, geographers and those involved with the vast field of Developme
nt Studies have sought to answer this question, and in the process, have come up with
many different models to explain this phenomenon.

W.W. Rostow and the Stages of Economic Growth

One of the key thinkers in twentieth-century Development Studies was W.W. Rostow,
an American economist, and government official. Prior to Rostow, approaches to deve
lopment had been based on the assumption that "modernization" was characterized b
y the Western world (wealthier, more powerful countries at the time), which were able
to advance from the initial stages of underdevelopment. Accordingly, other countries
should model themselves after the West, aspiring to a "modern" state of capitalism an
d liberal democracy.

Using these ideas, Rostow penned his classic "Stages of Economic Growth" in 1960, wh
ich presented five steps through which all countries must pass to become developed:
1) traditional society, 2) preconditions to take-off, 3) take-off, 4) drive to maturity and
5) age of high mass consumption. The model asserted that all countries exist somewh
ere on this linear spectrum, and climb upward through each stage in the development
process:

Traditional Society: This stage is characterized by a subsistent, agricultural based econ

omy, with intensive labor and low levels of trading, and a population that does not ha
ve a scientific perspective on the world and technology.
Preconditions to Take-off: Here, a society begins to develop manufacturing, and a mo
re national/international, as opposed to regional, outlook.
Take-off: Rostow describes this stage as a short period of intensive growth, in which in
dustrialization begins to occur, and workers and institutions become concentrated aro
und a new industry.

Drive to Maturity: This stage takes place over a long period of time, as standards of livi
ng rise, the use of technology increases, and the national economy grows and diversifi
es.
Age of High Mass Consumption: At the time of writing, Rostow believed that Western
countries, most notably the United States, occupied this last "developed" stage. Here,
a country's economy flourishes in a capitalist system, characterized by mass productio
n and consumerism.
Rostow's Model in Context
Rostow's Stages of Growth model is one of the most influential development theories
of the twentieth century. It was, however, also grounded in the historical and political
context in which he wrote. "Stages of Economic Growth" was published in 1960, at the
height of the Cold War, and with the subtitle "A Non-Communist Manifesto," it was ov
ertly political. Rostow was fiercely anti-communist and right-wing; he modeled his the
ory after western capitalist countries, which had industrialized and urbanized.

As a staff member in President John F. Kennedy's administration, Rostow promoted hi

s development model as part of U.S. foreign policy. Rostow's model illustrates a desire
not only to assist lower-income countries in the development process but also to asse
rt the United States' influence over that of communist Russia.
Rostow's Stages of Economic Growth model is one of the major historical models of e
conomic growth. It was published by American economist Walt Whitman Rostow in 19
60. The model postulates that economic growth occurs in five basic stages, of varying
length:[1]

Traditional society
The Pre Conditions of take-off
Take-off
Drive to technological maturity
High mass consumption
Rostow's model is one of the more structuralist models of economic growth, particular
ly in comparison with the "backwardness" model developed by Alexander Gerschenkr
on, although the two models are not mutually exclusive.

Rostow argued that economic take-off must initially be led by a few individual econo
mic sectors. This belief echoes David Ricardo's comparative advantage thesis and critic
izes Marxist revolutionaries' push for economic self-reliance in that it pushes for the "i
nitial" development of only one or two sectors over the development of all sectors eq
ually. This became one of the important concepts in the theory of modernization in so
cial evolutionism
Rostow's Stages of Economic Growth model is one of the major historical models of e
conomic growth. It was published by American economist Walt Whitman Rostow in 19
60. The model postulates that economic growth occurs in five basic stages, of varying
length:[1]

Traditional society
The Pre Conditions of take-off
Take-off
Drive to technological maturity
High mass consumption
Rostow's model is one of the more structuralist models of economic growth, particular
ly in comparison with the "backwardness" model developed by Alexander Gerschenkr
on, although the two models are not mutually exclusive.

Rostow argued that economic take-off must initially be led by a few individual econo
mic sectors. This belief echoes David Ricardo's comparative advantage thesis and critic
izes Marxist revolutionaries' push for economic self-reliance in that it pushes for the "i
nitial" development of only one or two sectors over the development of all sectors eq
ually. This became one of the important concepts in the theory of modernization in so
cial evolutionism

Rostow's Five Stages of Economic Growth Model

Levels: A Level Exam boards: Edexcel, OCR, IB
Share on FacebookShare on TwitterShare on LinkedinShare on GoogleShare by email
Walt Rostow took a historical approach in suggesting that developed countries have t
ended to pass through 5 stages to reach their current degree of economic developme
nt.
These are:

Traditional society. This is an agricultural economy of mainly subsistence farming, little

of which is traded. The size of the capital stock is limited and of low quality resulting i
n very low labour productivity and little surplus output left to sell in domestic and over
seas markets
Pre-conditions for take-off. Agriculture becomes more mechanised and more output i
s traded. Savings and investment grow although they are still a small percentage of na
tional income (GDP). Some external funding is required - for example in the form of o
verseas aid or perhaps remittance incomes from migrant workers living overseas
Take-off. Manufacturing industry assumes greater importance, although the number o
f industries remains small. Political and social institutions start to develop - external fin
ance may still be required. Savings and investment grow, perhaps to 15% of GDP. Agri
culture assumes lesser importance in relative terms although the majority of people m
ay remain employed in the farming sector. There is often a dual economy apparent wi
th rising productivity and wealth in manufacturing and other industries contrasted wit
h stubbornly low productivity and real incomes in rural agriculture.
Drive to maturity. Industry becomes more diverse. Growth should spread to different
parts of the country as the state of technology improves - the economy moves from b
eing dependent on factor inputs for growth towards making better use of innovation t
o bring about increases in real per capita incomes
Age of mass consumption. Output levels grow, enabling increased consumer expendit
ure. There is a shift towards tertiary sector activity and the growth is sustained by the e
xpansion of a middle class of consumers.
These countries are ranked lowest in terms of the 2015 Human Development Index -
many of these low-income countries remain heavily dependent on primary commoditi
es.

Walt Whitman Rostow (also known as Walt Rostow or W.W. Rostow) OBE (October 7,
1916 – February 13, 2003) was an American economist, professor and political theorist
who served as Special Assistant for National Security Affairs to US President Lyndon B.
Johnson from 1966 to 1969.[1][2]

Walt Whitman Rostow, American economic historian and government official (born O
ct. 7, 1916, New York, N.Y.—died Feb. 13, 2003, Austin, Texas), as an adviser to Preside
nts John F. Kennedy and Lyndon Johnson, advocated an ever-increasing American co
mmitment to the Vietnam War (1955–75). He was a Rhodes scholar who taught at sev
eral prestigious universities in the U.S. and Britain and became well known with the pu
blication of The Stages of Economic Growth: A Non-Communist Manifesto (1960). Ken
nedy hired Rostow in 1961 as his deputy special assistant for national security affairs. R
ostow chaired the State Department’s policy planning council from 1961 to 1966, when
he became Johnson’s special assistant for national security affairs (the post later know
n as national security adviser). Even after most other government officials had become
convinced that the Vietnam War was unwinnable, Rostow consistently pushed for its
escalation, convinced that the U.S. was winning and that the war was necessary so tha
t economic modernization could take place in Southeast Asia.