During this process, pre-modern or traditional societies evolve into the contemporary Western societies that we know today. The savings caused by increased productivity are saved and invested in other areas, including technology and infrastructure like roads, bridges, and harbors. A demarcation along this line is surely arbitrary. The rate of productive investment should rise from approximately 5% to over 10% of national income or net national product 2. There are many different versions of modernization theory. A market oriented economy in which industrial production plays a predominant role may propel exceptional overall growth in country X.
This led to development of the existing industries and also variation in tastes and preferences took place more rapidly in this period. Walt Whitman Rostow was an economist who developed a theory of how a country's economy develops and grows, and in 1960 he took a crack at addressing these issues in his book, The Stages of Economic Growth. Because of these traditions these people find it hard to imagine life as another way and with little opportunity for advancement, the traditions continue on. The theory of economic growth is an alternative to Marxist theory. States and individuals utilize irrigation systems in many instances, but most farming is still purely for subsistence. In this context, in the late 1940s, modernisation theory was developed, which aimed to provide a specifically non-communist solution to poverty in the developing world — Its aim was to spread a specifically industrialised, capitalist model of development through the promotion of Western, democratic values.
The new version of modernization theory theorized that modernization would more than likely come from economic development that stemmed from developing nations producing products or services for the world market. Between 1964-1966, Rostow served in the Inter-American Committee for the Alliance for Progress. This optimistic must be understood in the historical context of post war prosperity and growth in the north and independence of many southern colonies along with the growth of national markets and trades. He did not explain how the variables interact and generate economic growth. It theorized that underdeveloped nations were underdeveloped because they were a product of unsound traditionalist, religious, and communal values that hindered progress.
To modernize is to move one country from the lower stage to the higher one. Individuals begin having larger families and do not value income as a pre-requisite for more vacation days. The workforce becomes more skilled in this stage as the demand of modern technology requires it. Thirdly, Dependency Theorists argue that development is not really about helping the developing world at all. The fast growth of the leading sectors pulled along less dynamic parts of the economy. Many modernization theorists of the time, such as W. This resulted in concentration of political power in the hands of landowners in most cases; everywhere, family and lineage, and marriage ties, constituted the primary social organization, along with religious customs, and the state only rarely interacted with local populations and in limited spheres of life.
In the clip below, Vandana Shiva presents a useful alternative perspective on the Green Revolution, pointing out that many traditional villages were flooded and destroyed in the process: Finally, there are ecological limits to growth. Over-lapping of Different Stages: The stages of economic growth mentioned by Rostow are not mutually exclusive and they may overlap each other. As these technologies spread throughout the world, societies are becoming more industrialized. An example of a country in the Take-off stage of development is Equatorial Guinea. The citizens understood the essence of control of birth rate and death rates. It cannot be replicated in other places because of this, and it should not be replicated in this way. Government plays the driving role in development of social overhead capital as it is rarely profitable, it has a long gestation period, and the pay-offs accrue to all economic sectors, not primarily to the investing entity; thus the private sector is not interested in playing a major role in its development.
Reflecting on a few hundred years of history in North America and Western Europe, and taking a positive view of the changes observed during that time, they developed a theory that explains that modernization is a process that involves industrialization, urbanization, rationalization, bureaucracy, mass consumption, and the adoption of democracy. In the sphere of political organisation, it is during this stage that an effective centralised nation state starts emerging. Social change has been, and probably will continue to be, a complex process that reflects the priorities we set for any nation as well as our will to achieve them. Even for the countries, the key statistics have been highly unreliable till now. Why must the leading sectors be in manufacturing? It is developing a world-class infrastructure- including a modern transport network, widely available energy, and sophisticated telecommunications facilities.
New types of industries producing durable consumer goods come into existence which satisfies the wants for more consumption. The existence or quick emergence of a political, social and institutional framework which exploits the impulses to expansion in the modern sector and the potential external economy effects of the take-off. Historically, the United States is said to have reached this stage first, followed by other western European nations, and then Japan in the 1950s. One of the key thinkers in twentieth-century Development Studies was W. Rostow and the Stages of Economic Growth One of the key thinkers in twentieth century Development Studies was W. The idea is that with help from West, developing countries could develop a lot faster than we did.
India did some of these things in the First Five Year plan period 1951-56. Strengths:- It provides a general path for development and splits this path into 5 stages. This is profoundly related to the ideal of meritocracy. Volume fluctuations in trade due to political instability are frequent; historically, trading was subject to great risk and transport of goods and raw materials was expensive, difficult, slow and unreliable. Each country in this position chooses its own balance between these three goals. According to Modernisation Theorists, obstacles to development are internal to poorer countries.