Review Rostow's five stages of economic growth and categorize the following countries: Spain, U.S. A., Uganda, Brail, and China. W. W. Rostow based his theory on the three economic sectors: primary, secondary, and tertiary. The globalization of nations reflects where a nation is in the development pattern. His theory includes the following levels:
Traditional society â?" primary a subsistence economy in which agriculture is the most important industry; little trade beyond borders because production is consumed by producers.
Transitional stage â?" surplus of production and emerging transportation system; opportunities for trade develop.
Take off " initiation of industrialization with increased in manufacturing; focus on a few industries; social and political institutions developed to support industrialization
Drive to maturity â?" growth increasing; innovation developing
High mass consumption
What conditions must exist for the above countries move from one stage to another? Do countries regress through the levels? What would cause a country to regress?
Spain: Preconditions for take-off
After an economic downturn in early and mid 1990s, the Spanish economy took a turn around to experience strong growth rates and a rise in foreign investment sparked by increased liberalization. There has been an increase in levels of investment and public infrastructure projects making the economy on the Preconditions for take-off stage.
Until few years back, China was a traditional society with no trade focus until the government opened doors for capital mobilization. It was then that the base was laid as manufacturing sector developed. Currently China is in the take-off stage; the society is driven by economic progress through trade with different nations.
U.S.A.: High Mass Consumption
The economy of the United States experienced a phase of tremendous growth ...
Countries and regression between stages are examined.