Rostow's Modernization Theory

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• 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)