Rostow's Modernization Theory

Modernization Theory by Rostow

-created in 1950

-explains modernization

1)The Traditional Stage- these are traditional societies that build their lives around families

-live similar to the lives of our ancestors

-have limited wealth

-most people are subsistence farmers

-Century ago most people still in 1st stage and some still are

-"unproductive activities" (military and religious focus) and bartering

2)Preconditions for takeoff- Motivation for economic activity

-build banks and currency

-people encouraged to start selling goods and not just making things for their own consumption

-begin to develop infrastructure like water sewage and transportation which skyrockets productivity

3)Take-off Stage-economy grows

-may eventually be overcome by traditional practices and fail

-modernization only shown in core areas of country

-rapid population growth

-manufacturing goods, quality of life improve, material goods, industrialization and urbanization increases

-industrialization increases

-agriculture decreases

-stage w/most amount of growth

-industrialization begins

-wages increase

-economy expands

-GDP increase

4)Climax Stage/The Drive to maturity-

-Diffusion of technology

-industry

-large share of GDP

-Skilled Labor increases

-begin increasing wealth

-industry overtakes agriculture

-most social change

-increased education

-new services

-workers become more skilled and specialized

-people can afford some luxuries

-poverty reduces greatly

-costs more to live and pop growth is reduced with schooling

5)Age of high-mass consumption- economic development steadily raises the living standards with high mass production and encourages consumption of material products.

-items that may have been luxuries in last stages are becoming necessities as country starts producing an array of goods

-marked by high incomes

-majority workers involved in service sector in economy

-birthrate goes down

-standard of living up

-Ex: US and most European countries

Critics of the Modernization theory

-model is too old

-model is oversimplified

-doesn't include new technological or scientific advances

-reflects mostly US and European development and their resources and population

-especially since US took advantage of other countries through Westernization

Supporters of the modernization theory

-claim that to some extent all countries can be compared to this model

-It's easy to understand

-It compliments the demographic transition model(DTM)