11

ROSTOws STAGES OF
GROWTH ECONOMIC
The take-off
usually witnmesses a definite
victory of those who would social, political and cultural
modernise the economy
either cling to the over those who
traditional society or to seek would
other goals."
-W. W. Rostow

It is INTRODUCTION
admitted
an
dimensional phenomenon. fact Both
that economic
growth is a multi-
decisively influence the course economic and non-economic
of forces
every country had to economic growth. As a
ts
economic growth. They arepass
through different stages matter of fact,
ment or economic called the stages during the
of economic course of
growth. Different economists have
stages of economic growth develop-
Tather of in historical classified the
economic economics, was the first perspective. Adam
person who classified theSmith, the
growth or
development
Toral, (ii) agricultural, in a
(iv) sequence of (1) hunting,stages of
Friedrich List of the German commercial, and (v) (11) pas-
o economic
IV agriculturalgrowth
historical
:(1) savagery; (i1)school distinguished manufacturing.
five stages
and
manufacturing pastoral; (ii)
2ldebrand, there were three stages of (v) commercial. agricultural
; and
conomy ; (ii) money economic According to
nteresting that some economy ; and growth (1) barter
(11i) credit economy.
:

ansactions.. economists have

For inslance, adopted the
It is
very
mestic
ne British economy, town
Bucher classified the approach of area
stages as independent
economic economy, and the national
8rowth: ) household historian, stressed four stages economy. Ashley,
V factory
system.
system; (ü) guild system;
of economic
ory, Karl Marx has On the basis of (ii) domestic
materialistic systemol
feudalism (i) bourgeois the stages into four
classified interpretalion
S communism. Prof. Colin capitalism; (ii) socialism;categoriesand
Stages out
of different stages of Clark, Sombert and Weber
Econor
sta omic Growth economic growth in their have also
ProProf. Walteconomic
Witman growth, (1952)." book, *7he
based onHowever, the classification
historical approach as of the
Rostow (W. W.
Rostow) in his famous bc Dk given by
titled The
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 162 Econon1ics
of Development and Planning
Rostow's Stages of Economic Growth
(10) Limit of Development. Per Capita output cannot be raised 163
beyond a limit. Quantum and direction of trade pend upon the In addition to these, a social change is also necessary foor
whims of dominant social and political groups. transition. There must be a definite change in social attitudes,
(II) The Preconditions of Thke-off expectations and values. People must desire progress and they must be
convinced that development is possible. According to Rostow, "thc
The second stage of economic growth is one in which essence of transition can be described
preconditions for sustained growth are legitimately as a rise in the rate
created in an economy. It may of investment to a level, which regularly, substantially and
outstrips population growth." Thus the preconditions forperceptibly
be calleda transitional
stage responsible for creating preconditions for
take-off stage. According to Prof. Rostow, "The take off
second stagethis
of require the evolution of modern science
scientific attitude of people, expansion ofand technology,
economic growth embraces societies in the process of transition; rational and
period is when the preconditions for take-off are developed." The rising agricultural productivity, large extentSOC, particularly transport,
of market and
expansion of
preconditions take-off stage actually refers to stage wherein all the internal and external trade.
important factors of production-land, labour, capital and enterprise
collected. Technological factors are improved and Features o r Characteristics of
are
developed. main features o r characteristics of the Preconditions of Take-off. The
Entrepreneurs emerge to mobilise savings. They are wiling to take preconditions take-off stage are
risks for profits. Major political
hurdles to industrial orientation of the as foilows:
economy and the unification of the country a r e removed. This opens (1) Less Dependence
avenues towards an integrated
on Agriculture. Compared to the traditional
economy. Productive revolution takes economy, there is much less dependence
place in agricultural activities. This stage, however, involves a slow of growth. Industry, Trade, Transport
upon agriculture in this stage
change in the attitudes and organisational pattern. The wncept of and other services start
economic development begins to be realised when traditional developing.
and bottlenecks break up.
rigidities (2) Enlarged Outlook. Outlook of the masses is enlarged.
Occupational, geographical and social start giving People
mobiity takes place. Import substitution industries are set up. Death importance to the national and international developments
rather than merely
rate declines while
birth rate remains the sanme. Population pressure confining themselves to the local issues. The field of
increases. economic activities is fairly diversified.
To use Prof. Rostow's words, "The idea
spreads that.economic, (3)
Rate of Savings and Investment. The
rates of savings and
progress is possible and is a necessary _condition for some other investnent during this
stage are ikely to be under 5% of the net
national product in economy.
purpose, judged be good; be it national
to
for the
dignity, private profit, the
general welfare
least, broadens
or
and
better life children. Education for some at (4) Stress on
Development of Transport. The greater stress was
changes to suit the needs of modern activity. New laid the
types of
enterprising men come
forward in the private economy, in
on
nication.
development and expansion of transport and commu-
government, or both, willing to mobilise savings and to take risks in
pursuit of profit modernisation. Banks and other institutions for (5) Economic and Social Costs. A
mobilising capital appear. Investment increases, notably in transport, revenue is devoted to the part of the government
construction of roads, dams and bridges
communications and in raw materials in which other nations may have besides schools. hospitals and research institutes. So that eccnomic and
aneconomic interest. The scope of commerce, internal and external social cost of
living starts rising.
widens.
appears
And here and there, modern manufacturing enterprisc
using the new methods. According to Rostow the
(6) Decline in Birth Rate. Birth rate starts
declining in this stage.
This is because the demand for
workers starts reducing. People are less
preconditions for sustained industrial growth have normally required desireus of enlarging their
radical changes in three non-industrial sectors; (1) expansion of social farily size.
overhead capital especially in transport communications, roads etc. to (7) Change in Views. Th: z is a
widen the size of the market, to exploit natural resources productively the
people. They become confidentperceptible change in the views of
of increased production with
and to help the state in administering the country more effectively; (2) appropriate utilization of the resources.
a technological revolution in agriculture so that agricultural yield (8) Importance of Personal Skill.
increases to fulfil the requirements of
increasing population, both rura Importance of the individual no
and urban; (3) an expansion of foreign trade consisting of imports, 1Onger depends upon his social or religious status; rather it depends
upon his personal skill and
including capital imports, financed by efficient production and abilities.
marketing of natural resources for exports. (9) End of Conservatism. Conservatism comes
to an end, and the
economy is driven on the
path of modernisation.
 Rostow's Stages of Economic Groth 165
164 Economics of Development and Planning (1) Rate of Investment Over Ten Per cent. In this
stage, growth
rate of national income should exceed the growth rate of
(10) Foreign Trade. In this stage, the countries start importing that per capita income is stabilized at a population, so
finished and capital goods from abroad. Raw material, minerals and high levelL From this point of
view it is essential that the rate of investment is over ten
semi-finished goods are exported. per cent of the
GNP
( ) The Take-off
(2) Development of the Leading Sectors. In this stage,
of
The take-off is a decisive stage in the evolution of any society. It the leading sectors are developed in the economy. Rostow some
divides
is this period in which growth becomes
a normal
condítion of the various sectors of the economy as :
society. It is the period in which growth becomes a normal condition of
a society. The take-off
process generally begins on account of some i) Primary Growth Sectors. New innovations and
techniques of
production promising higher rates of growth is the
sharp stimulus which may comee irom political revolu- tion, a
technological in:ovation or even a characteristic of these sectors. Thus, Textile industry was theprincipal
favourable international
growth sector in the ecotomy primary
environment. The expansion of the different sectors transforms the
in Great Britan followed tbe
England. Sequence of industrialisation
structure of an economy which starts moving on self-sustained growth. growth in this sector.
According to Rostow, the self-sustained growth is take-off stage. (ii) Supplementary Growth Sector. Growth in this sector linked
Rostow defines take-off stage, "as an interval during which the rate of with the growth in óther sectors of the economy. The development of
investment increases in such a way that real output per capita rises and Railways for
example, facilitated the growth of Coal, Iron and
this initial increase carries with itself radical changes in production Engineering enterprises.
techniques and the disposition of income flows which perpetuates the
new scale of investment and perpetuates thereby the rising trend in per iii) Derived Growth Sector. This is the sector which derives its
"as an growth potential from other sectors of the economy. Increased national
capita income." At another characterised take-off,
place, Rostowradical income for
exanmple, causes increased demand for refrigerators, TVs
industrial revolution, tied directly to method of
changes in etc. thatbrings about the developmnent of these indusiries.
production, having their decisive consequences over relatively short
period of time." He calls it as "a great watershed in the ife of modern (3) Social, Political Framework. Another condition of the
societies." During the period of take-off stage, obstacles and resis- Take-off stage is that the secial and political framework of u e country
tances to steady growth are overcome and forces of economic growth becomes conducive to the growth of modern and heavy industries. This
expand and come.to dominate the society. helps stabilisation of the growth process as well as generation of
In domestic capital formation.
this
stage, economy can progress without
the
assistance. New industries are established which start yielding surplus.
external
Features or Characteristics of the Take-off
Rate of investment improves. New innovations take place. The social Stage
and political complexion of the country changes. The main characteristics or features of take-off stage are
The take-off period is supposed to be very short lasting for two or follows: as

three decades. Prof. Rostow presents the following table highlighting (1) New Possibilities for Productive
Enterprises. It needs
the take-off stage of sõme countries which have passed into this stage political, social and institutional changes which will
of economic growth: initial increase in the scale of investment' and result perpetuate
in the regular
an
acceptance and absorption of innovations. The take-off
visualises the
Country Take-off Country Take off Tise in investment from 5 per cent to 10 per cent of the GNP and there-
ater, through socio-institutional
Great Britain 1783-1802 Russia 1890-1914
Investment becomes a
changeover, this 10 per cent
feature of the economy. Rostow argues rate
France 1830-1860 Canada 1986-1914
population growth is above 1.5 per cent or the
that if the
Belgiumn 1833-1860 Argentina 1935 ato is more than 3:1 then even up to 12.5 per year capital-output
U. S. A. 1843-1860 Turkey 1937 invested. per cent of GNP should be
Germany 1850-1873 India 1952
Sweden 1868-1890 China ,(2) Entrepreneurship and
revolution takes place. As a result,Capital
1952 Formation. Socio-political
Japan 1878-1900 the rate of
ncreases. Innovations start. Industrial developmentcapital accumulation
and expansion take
Conditions of the Take-off Stage Pace in the economy and profits start accruing and these are
Rostow had suggested the following three related conditions for Cnvested in agriculture and industry along with the application of new
making the economic growth process self-sustained
166 1 Economics of Development and Planning Rostow's Stages of Economic Growth 167
the foreign .trade pattern of the I The Drive to Maturity
production techniques,' changing
economy. Take-off stage is followed by a drive to maturity stage. Accor ding
not a n Essential Condition.
(3) Foreign Capital is Helpful butwithout
to Rostow, "Maturity can be defined as the stage in which an economyy
and Japan,
In BritainUSSR take-off occurred foreign capital. While demonstrates the capacity to move beyond the original industries which
in USA, and Canada foreign capital played an important role. powered the take-off and to absorb and to apply efficiently over a wide
range of its resources the most advanced fruits of its technology."
(4) Emergence of Leading Sectors. Rostow defines leading- of Rostow further defined maturity "as the period when the society has
sectors as those sectors which have new production functions high effectively applied the range of modern technology to the bulk of its
reinvestible surplus which
productivity, that generate.a maximum or This resources." During this period, many technical changes take place andd
can be ploughed back into productive investment. will turn
industrialisation into an automatic and cumulative process and a spiral, the society reaches the technical maturity. New production techniques
of effective demand for other products wll be introduced. take place and the old ones disappear. During this period the rateof
saving and investment reach such a magnitude that economic growth
There are three types of growth sectors in the economy, namely becomes automatic. There i1s a sharp increase 1n exports. As the

(a) the primary growth sectors, (b) supplementary growth sectors and' economy drives to maturity, the overall capital per head increases.
(C) the derived growth sectors. The primary growth
sectors are those Industrialisation becomes widespread along with diverse applications
o r for the
leading growth sectors where possibilities for innovation of new technology.The country becomes self-dependent regarding
n e w profitable o r hitherto unexplored resources yield technological as well as institutional-parameters of economic growth.
a
exploitation of
expansionary forces elsewhere in New
high growth rate and set in motion sectors leading sectors are created. The proportion of population
refer to those where rapid engaged in rurai pursuits declines. People prefer to live in urban areas.
the economy. Supplementary growth a requirement or
advancements O c c u r either a s a'direct response o r a s
sectors a r e those where
Working force becomes technically skilled. Real wages rise. The
primary growth sectors.
advancement occurs
Derived growth
in some fairly steady relation to the growth of totai
Working force organises itself in order to have greater economic and
social security.
real income, population, production o r s o m e other.
industrial According to Rostow this stage of maturity is reached after 40-60

rate of5) Trade.

Foreign in Foreign trade also contributes to raise the years of the stage
maturity
gives the
of take-off. Rostowcountries symbolic dates for
investment this stage. Exports of minerals and other natura technological of the following
resources products are increased and the
revenue is spent on the Great Britain 1850
import of plant and equipment. United States 1900
a characteristic
by
(6) Increase in Demand. This stage is marked
the consumer goods.:*
Germany 1910
increasE in the level of demand, particularly of France 1910
invest. Industria expansion along Sweden
This stimulates the inducement to outcome
o
1930
employment opportunities is the inevitable Japan 1940
with more
increased investment. Russia 1950
(7) Technical Development. New techniques production are
of Canada 1950
used in the agriculture and industrial operations. Agriculture 1s On the
commercialised. Farmers become used to innovative technique o basis of these dates, it has been
predicted that Indian
widely adopted in all fields of cconomy may attain technological maturity by 2016, i. e. after the 13th
production. Development techniques
are
Five Year Plan. The prediction will come out true only if by that
production. ndian economy demostrates its capacity to absorb and apply ettici time
tly
in this stage also
(8) Government Policy. Government Policy the fruits of advanced technology over the wide range of its resources.
be comes conducive to economic growth. The Government helpss Much depends
upon the development policies to be adopted by the
technological research and training for improved production methodsgi 8overnment and the priorities accorded to the various sectors in the
New entrepreneurs are encouraged. Investment is promoted. subsequent plans.
9) Period is Short. The period of take-off stage is quite short, Characteristics or Features of the Drive to Maturity Stage
lasting fur about two or three decades. The main characteristics or features of the drive to maturity stage
are as
(10) Economic Revolution. In fact, it is a phase of economii
revolution in which an economy holds self-sustaining and seu
follows :
(1) Change in the Character of Labour Force.
During this stage,
generating economic gOwth. the character of labour changes. It primarily becomes skilled. Real
168 I Economics of Development and Planning Rostow's Stages of Economic Growth 169
wages start rising and the labourers organise themselves in order to First, the increased be allocated to thc
have greater economic and social security.
resources military and
(2) Change in the Character of Entrepreneurship. During this
foreign policies for achieving international recognition and balance of
external power and influence. This policy was followed by some
stage, the character of entrepreneurship changes. Rugged and hard countries. Their main object had been to look beyond their borders in
working masters give way to polished and polite-efficient managers., to conquer the new world, and become a world's
a
desire
power.
supreme
(3) Rise in Investment Rate. During this period, the investment
rate rises from 10% GNP to about 20% of GNP resources of
Secondly, the themature economy be directed for
(4) Technological Changes. During this period, the technological promoting the welfare of the society. The state can achieve this
changes take place and the society reáches the technological maturity objectiveby redistributing income through progressive taxation, by
stage. New production techniques take place and the old ones providing increased leisure, and social security to the working class.
Free education and fre, medical aid to the weaker sections of
disappear. society
are other measures which can promote social welfare.
(5) Increase in Exports. During this people, there is a rapid
increase in exports. Thirdiy, the state should direct its.resources for the expansion of
consumption levels beyond the basic necessities of life such as food,
(6) There is a of population from rural areas to urban areas.
shift shelter and clothing. The state should provide better quality of food,
(7) Conditions of employment change considerably. Dependence neat andclean housing accommodation, better variety of clothing.
upon agriculture reduces. Labourers become more self-sufficient and Along with it, tke state should encourage the
consumption of durable
better off.
appliances goods
consumer andhousehold
and other services such as cheap automobiles, clectrical
gadgets.
(8) Modern techniques become widespread across all ines of
production. Rostow's stages of growth can well be compared with the five
Stages of the life of a man. Stages of growth have a sequence of tradi-
(9) The economy earns a status of significance amongst
tional society,
developed nations of the world. preconditions for take-oft, maturity and mass-
consumption. Similarly, the life of a man follows the sequence of
(10) New political as well as social institutions are established in childhood, teenage, adolescence, maturity and old age. Just as the man
the country. ravels from one stage to another till he reaches the old age, in the
(11) Dependence upon other countries is considerably reduced. Same fashion, the scciety moves on from one stage to another till it
(12) Organisation of production is done by skilled personnel. Teaches the stage of mass consumption. As it is
atter the death of a man, similarly, it is impossibleimpossible
to
predict
to predict about the
(13) Per capita income and standard of living of the people rise to behaviour of the society after the age of mass
consumption.
fairly high level.
America was the first country to reach the stage of high mass
(14) New leading sectors are created. consumption in 1920's. It was foilowed by great Britain in 1930, and
(15) The stage of maturity is reached after 40-60 years of takeoff Japan and western Europe in 1950.
stage. Characteristics or Features of
High Mass Con_umption
V) The Stage of High Mass Consumption
The main characteristics or features of
high mass consumption
The stage of high mass consumption is the last and the most are as follows:
of economic growth. There is a considerable increase (1)
important stage
in production. Consumption of comforts and luxuries becomes the Consumption of comforts and luxuries rises.
(2) The rate of investment rises well above 20% of the GNP.
common feature. The attention
of the economy is shifted from (3) Standard of living of the people rises.
production to consumption and the welfare of the people. In this stage,
ihere is migration of the population from villages to cities, extensive use (4) Society assumes the role of welfare state.
of automobiles, the durable consumption goods and household 5) Aggregate and per capita income becomes quite high.
instruments. According to Rostow, in this stage, "The balance of
attention of the society is shifted from supply to demand from problem
(6) This is a period of consumer's sovereignty.
f production to problems of consumption and of welfare in the widest (7) Tendency of nmigration of population from village to the cities.
sense." Rostow believes that the resources employed in the followingS (8) There is increasing financial security for everybody and a
directions might increase the welfare of the society. Continued stage of full
employment.
170 1 Economics of Development and Planning
(9) It is a kind of prosperous and progressive society in which
"hungcr is something that one rcads about and poverty a memory."
(10) Bxtensivo use of automobiles, durable consumption goods
and household instruments.
In the five stages of economic growth it is the stage of high mass
consumption and is the last stage representing the attainment of the
goal to produce more and consume more.
According to Rostow's view, it is difficult to predict beyond these
five stages of economic growth. However; this classification is not a
static classification, this is a dynamic classification of the various stages
of economic growth.
A Critical Appraisal
Rostow's theory of the stages of Economic Growth is the most).
widely circulated and highly commented piece of, economic literaturgA
in recent years. His theory is based on the facts of history which gives:
us a realistic and lucid analysis of economic growth. It kas much tou
contribute to the economic growth. Rostow's work has created a lot of
interest not only in academicians but also the policy makers. His theory
of the stages of economic growth incorporates in a very significant way,
perhaps for the first time institutional and social factors into growth
process. This is done with the help of the observable propensities
which influence such prime movers of growth like the quantity and
quality of labour and capital.
Despite the above arguments in favour of the theory, Rostow's
historical approach to economic growth is subject to severe criticism o
the following grounds
(1) Traditional Society Not Necessary Sor Development.
According to critics, it is not true that every country essentially passes
through the first stage of traditional society. There are countries in the
world ike the United States, Canada, New Zealand and Australia.
which were born free of traditional society and they attained the
from the U. K.-an advanced country.
preconditions
(2) Preconditions May Not. Precede the Take-off. According to
the stage of preconditions is alsonot essential to be undertaken
critics,
before the take-off stage. For instance, there is no reason to believe
that an and accumulation of social overhead
agricultural revolution
capital in transport must take place before the take-off.
of
(3) Overlapping of Different Stages. The general observation
most of the countries reveals that the development of agriculture
continued even in the take-off stage. For example, in the case of New
Zealand and Denmark the agricultural development contiued even m
the take-off stage. It shows a considerable overlapping in the different
stages.
Rostow's Stages of Economic Growth 171
(4) Lack of Basis. Rostow does not provide any basis of distinctly
separating one stage from the other.
It is difficult to ascertain when a
particular stage begins and the other ends. According to Kuzne's,
"There is prima facie case for expecting the
preconditions and take-off
stages to overlapping."
(5) Not Applicable to All Countries. According to Prof. Meir,
"Rostow's stages analysis may not be applicable to all countries. Some
countrics may in fact, jump certain stages during their growth process.
(6) Uncertainty. Rostow's stages analysis only tells the sequence
of stages. It fails to predict the
course of evenís with regard to
economic growth. Also, what would happen after the 5th stage of
growth is beyond the canvas of Rostow's growth analysis.
(7) Criticisms of the take-off. It is the take-off stage which has
been bitterly criticised by a number of academicians. Some of the
important criticisms follow as under
Economic change is a gradual process. Rostow believes that
the take-off for any society is characierized more or less by a sudden
jolt, a period of changing economic variables and relationships. The
critics feel that economic change is a gradual process rather than a
discontinuous one.
(ii) Rostow's dates of the take-off are arbitrary. But this assertion
of his has,no sound basis as Cairncross in respect of Great Britain
remarks: "T know of no evidence that growth was more self-sustaining
in 1802 than it had been in 1782."
(111) Take-off couid be abortive. Further, Rostow believes that
there would be regular economic growth after the take-off. But there
have been instances of abortive 'take-offs'. For example, Russia faced
an abortive take-off between 1890 and 1914.
(iv) Rostow's Conditions for Take-off are Arbitrary. The critics
charge against Rostow's analysis that his theory lies in the looseness
and arbitrariness with which the conditions and characteristics of
take-off are specified. According to Rostow, the first condition of
take-off is that there must be the rise in the proportion of productive
investment to national income to over 10 per cent. But there cannot be
àny universal fixity about this tentative
condition of 'take-off° that the figure. Similary, his another
development öf one or more substantial
manufacturing sectors with a high rate of growth seems to be a fuzzy
Statement because of the imprecision inherent in the adjectives
Substantiall' and 'high.
(8) The Stage of Drive to Maturity is Puzzling and
This stage of drive to maturity covers all the features of Misleading.
the take-off
Stage like rate of new investment over 10 per cent of national income,
development of new production techniques, leading sectors and
nstitutions. It automatically lowers the importance and the existence of
another stage of drive to maturity. Thus, his concept of *Drive to
Maturity" seems to be puzzling and misleading.
(9) The Stage of High Mass
Consumption not Chronoiogical.
his is the last stage of economic growth and is so defined that
COuntries like Canada and Australia have been noticed to be certain
entering
V
172 Economics of Development and Planning
the stage ofhigh mass consumption before even reaching the maturity Rostow's Stages of Economic Growth I 173
stage. One of the critics states:"The period of mass consumption is
nothing else büt minus its ideological overtone."
(10) Rostow-a false prophet. In the history of ideas any proposal
conten porary underdeveloped countries are more likely to be
is
concerned with the economies of first three stages. It we are to have a
welcome which helps us to understand the past and build a promising usefui and adequate
theory of economic growth, it must obviously be
and better future. But Rostow's attempt did not succeed in either comprehensive enough to embrace these three
direction. This is the viewpoint expressed by H. J. Habakkuk. He the economics of take-off. Thus, the stages as well, especially
further adds that, the experience of Europeancountries, does not concept of take-off is more
suitable for the industrialisation of
conform to Rostows pattern of growth. Even the economic poor countries."
development of underdeveloped countries does not.lend credence to Besides the above, the analytical study of take-off also gives
Rostow's pattern of growth. Different processes of growth cannot be guidelines to improve the inner mechanism of capital
formation,
. highlights the importance of fficient resource allocation, and outlines
compartmentalised into various stages, as has been done by Rostow.
the social and in.stitutional cha."ge needed for industrialization.
His analysis is not based on sound reasonings. of in view
these important guideposts we can say that the analysis of "takeoff
Conclusion. On the basis of the limitations discussed above, one can play a key role in the
should not conclude that Rostow's approach to the problem of growth countries.
rapid industriaiization of underdeveloped
is theoreticalky unsound or practically useless. Rostow's analysis is
unique, because it highlights the importance of social and institutional
Limitations. The concept of take-off, no doubt, enjoys a great
reputationamong the underdeveloped countries of the world, but it is
factors in the theory of economic development. Moreover, one cannot" a
dangerous weapon. It has to be used with great care by
understand the true nature of the problem of growth without: the planners
of underdeveloped countries. The main weaknesses or criticisms of
understanding the importance of non-economic factors. Economic Rostow's of economic growth are as follows
stages
growth is not only a function of economic forces, but of non-economic (1) Ignores
the Removal
forces too. Rostow appears to be the first economist who made a bold of Unemployment. Today, unemploy-
ment is the
burning problem of underdeveloped countries
consider the problem of However,
attempt in incorporating thenon-economic forces in his theory of the concept of
take-off
cconomic growth. For this bold attempt praise is due to him. ment at all. does not
unemploy-
A.ccording to Prof. A. Das Gupta, "the elimination
of an
RELEVANCE OF TAKE-OFF TO UNDERDEVELOPED accumulated backlog of unemployment is the minimumn that the
COUNTRIES
off
must accomplish in a poor country. According to take
attained, the economy is raised to a levelhim,
once
employment is full
Importance. The idea of take-off has a relevance to the problems Is
self sustained. Regarding India he says, "judged by where growth
of industrialisation in underdeveloped countries. According to Prof. A,
K. Das Gupta, "The term lacks precision and yet it is suggestive andi
criterion, despite all the investment that has taken the employment
place over the
period, our economy seems to be
can be given interpretation which is useful in understanding the overpopulated receding." Hence it is a must for an
It country to have the elimination of unemployment as one
process of the economic development of a n underdeveloped country. .
of the
is indeed the vagueness of the term that gives it strength, for one can
important conditions for take-off.
of the economy in
(2) Element of Ambiguity. Another limitation of the concept of
put an interpretation upon it to suit the conditions
conditions for take-off,
take-off stageis that there is an element of
ambiguity when it is applied
which one is interested." Of the three necessary to an underdeveloped country. The take-off.
is characterised by
the first two, namely rate of capital formation over 10% of national
the constant average rate of savings. To Das stage "This
income and the development of one or
more leading centres are to be a sensible Gupta does not seem
countries. g the interpretation. For even in a
highly developed economy
helpful in the process of industrialisation of underdeveloped average rate of saving may remain constant."
not
there can
So far as the first condition is concerned, as a matter of fact,the Economic Development not Spontaneous. The concept of
be little dou about achieving that percentage. However, second
The last.
ake-off assumes an element of
spontaneity of economic development
condition can be moulded to suit a country's environment. or seif-generating economic development
country. case of an which is least possible in the
condition too is important in the context of underdeveloped underdeveloped economy.
where monetary and political institutions and skills and technology are 4 Aeronautical Concept not Correct. Prof.
at a low level whereby they retard the expansion of the modern sector
the take-olf
ree with the symbolical presentation of the take-off. Bicanic does not
To him, "it is like
n this connection, Prof. Higgins remarks the usefulness of ght tlying animal just got cut off from the earth
and
Stage i n the context of underdeveloped countries. According to Higgin.s,
I t is with both the problems and cyclical movements of nationa
3T.It is like cre-ping over a very difficult thresholdfloating in the
of economic
Cvelopment. One has to creep over it, one cannot fly over it. 1t is not
Come 1n such growing economies in the fourth stage that the bulk or; takeoff but a very painful whichever
process
modern theoretical economics is concerned. The students of they nas to
go through." underdcYCIOpCd COuniry
(5) Capital Output Ratio not Constant. While
apital
requirement take off period, Rostow
calculating the
assumes capital output