Rostow’s Modernization Model

Rostow’s Modernization Model

Stage 1: Traditional Society

Characterized by economic structure dominated by agriculture.
-minimal productivity
-few exchange transaction
-economic change/technological improvements are not sufficient to sustain any growth in per capita output, which is low

Stage 2: Transition for Society (Pre-conditions for takeoff) 

Characterized by increased productivity in agriculture, and modern manufacturing begins to emerge. modern manufacturing remains low as it it the norm.

Preconditions for Take-off:
-Society engages in secular education
-establishes banks and currency
-emerging entrepreneurial class
-concept of manufacturing emerges, with only a few factories developing at first.

Stage 3: Take-off 

Growth becomes the norm and improvements in production lead to the emergence of leading sectors. Income rises across the board, and a new class of established entrepreneurs emerges.

Stage 4: The Drive to Maturity

-Modern technology is fully adopted in all economic activity
-new leading sectors emerge
-economy demonstrates technological and entrepreneurial skills to produce anything it chooses to,
-economy looks beyond the country's border for development.

Stage 5: High Mass Consumption

-leading sectors shift toward durable goods
-surge occurs in per capita income and increased allocation to social welfare programs.
-the masses can afford goods beyond food, clothing, and shelter.