LECTURE 5:

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ROSTOW’S STAGES OF GROWTH.

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 Content of Lecture 5

◦ Rostow’s Five Stages of Growth

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Rostow’s Five Stages of Growth
◦ W.W. Rostow (1959) studies economic history of
several countries and identified following five stages of
economic growth:

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1. The traditional societies

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2. Pre-conditions for take-off
3. The take off stage (most crucial stage)

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4. The drive towards maturity, and

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5. Stages of high mass consumption

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 Rostow’s Five Stages of Growth

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Source: Melissa Y. Rock (2020), Credit: Knox & Marston, and cited Jacobs 4

(2020)
 Stage 1: The traditional
society
Refer, Rostow (1959), pp. 4
Traditional societies in terms of
◦ Production, technology, and expansion
◦ Due to limited production functions and scientific technology,

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level of output was small.

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◦ Consumption Expenditure

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◦ Food Production absorbed majority by work force (around

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75%) and thus a high proportion of income was spent as non or

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low productive expenditure (Rostow, 1959)
◦ Economic Dependence
◦ In such societies, a large proportion of resources is devoted to
agriculture sector and is characterized by a hierarchical social
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Stage 2: Pre-conditions for take-
off
◦ It is stage of take-off when society is
prepared for sustained growth

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◦ It is a transitional stage between

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feudalism and take-off

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◦ Motivational Factors- External

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challenges, Aggression or nationalism.
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◦ There is economic, political and social
transition as well.

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Stage 2: Pre-conditions for take-
off
Changes in Non-industrial Sector
◦ called as “three key sectors of the preconditions”

◦ There should be expansion of social-overhead capital

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(notably in transport).

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◦ There is radical changes in agriculture sector

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◦ Expansion of Foreign trade

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 Stage 3: The take-off stage
◦ In its 1971 article, Rostow, discuss about take-off stage
◦ About
◦ This stage is linked to industrial revolution, connected to radical changes in
techniques of production – Rostow
◦ As per Kuznet- there will be massive and progressive structural transformation in
economies and society

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◦ Features
◦ There should be rapid growth in a leading group of sectors (Rostow, 1959).

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◦ Leading Sectors varies from country to country
◦ cotton textiles (Britain and New England); to railroads (The United States, France,

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Germany, Canada, Russia); to modern timber-cutting and railroads (Sweden).

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 Stage 3: In short, The take-off stage

1. Share of investment to national income must rise from 5% to 10% and

more and likely to overtake population growth (Rostow, 1971).
2. It is assumed that features of take-off stage must be take place over

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a short period of time, as it has to reflect an sense of economic

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revolution
3. Ultimate aim is to achieve self sustaining and self generating

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economic growth (Rostow, 1959)

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 Stage 4: Drive to maturity
(period of self-sustained
growth)
◦ In this stage, leading sector emerged, which replace
the old unleading sectors.
◦ Note: Development of STEEL industry, in particular, is the

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symbol of maturity and the evidence is that US, UK,
Germany and France entered this stage more or less at

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the same time.

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◦ Common structural changes in this stage

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◦ Distribution of workforce in agriculture sector is now only 20 per cent.

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◦ Increase in population of white collar workers (tertiary sector dominance)
◦ Rapid growth of urban population

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Stage 5: Age of high mass consumption
◦ In this stage of development, attention of society shifts from problems of
production to the problems of consumption and welfare.

◦ PCY rises to such a high level that consumption level of the people in

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general beyond shelter, food, and clothing, and towards articles of

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comforts and luxuries on a mass scale

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Bibliography for Lecture 5
◦ Todaro MP, Smith SC (2015) Economic Development. 12 edn. Pearson, New Delhi
◦ Rostow, W. W. (1959). The stages of economic growth. The Economic History
Review, 12(1), 1-16.
◦ Rostow, W. W. (1971). The take-off into self-sustained growth. In Developing the
Underdeveloped Countries (pp. 86-114): Springer.

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◦ Rogers, S., & Gentry, S. (2018). Economic Development and Planning: Scientific e-
Resources.

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◦ Jacobs, J. (2020, 11 February 2020). Rostow's Stages of Growth Development Model. Retrieved
14 August 2020 from https://www.thoughtco.com/rostows-stages-of-growth-development-

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model-1434564
◦ Melissa Y. Rock. (2020). Modernization Theory (Rostow). The Pennsylvania State University.

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https://www.e-education.psu.edu/geog128/node/719

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◦ Naqvi, S. N. H. (2015). Economics of Development: Toward Inclusive Growth. SAGE Publications.
◦ Ray, D. (2012). Development Economics (19 ed.). Oxford University Press.
◦ Thirlwall, A. (2009). Growth & Development: With Special Reference to Developing Economies (8
ed.). Palgrace Macmilan.

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