ORGANIZATION AND MANAGEMENT

STAGES OF ECONOMIC DEVELOPMENT

Walt Whitman Rostow wrote the Economic Growth: A Non-Communist Manifesto such as,

1. Traditional Society 
- mainly use subsistence farming 
-This tribe has zero contact with modern technology other than airplane that has flown over them.
-They use the plants around them to create shelter.

2. Preconditions for take off 
-Industrial/manufacturing society begins. 
-Trade expands overseas creating an international market. 
-This stage is the preparation for take-off. 
-Agriculture becomes commercialized and mechanized due to technological improvement.

3. Take-Off 
-Productive Investment rises 5%-10% of national income.
-Substantial manufacturing sectors become developed. 
-Technological breakthrough occurs. 
-The textile industry had launched as did the economy of Britain when the industrial revolution occured.

4. Drive to maturity 
-Rostow defines this "as the period when a society has effectively applied the range of modern technology to the bulk of its resources"!
-Steadily growing economy and modern technology -Agriculture workers decrease drastically.

5. High Mass Consumption
-Tertiary activities increases 
-Consumers have beyond their basic needs 
-High valued goods become normalized to purchase
-People live in cities creating an urban society
-Society is able to focus on military, security issues, equality and welfare issues.