W.W. Rostow

Definition

W.W. Rostow was an American economist and political theorist best known for his model of economic development, which outlines five stages that countries go through as they industrialize and develop economically. His theory emphasizes that development is a linear process, suggesting that all nations can achieve economic growth by following the same pathway of development, making it a significant concept in the study of development theories.

5 Must Know Facts For Your Next Test

1. Rostow introduced his model in his 1960 book 'The Stages of Economic Growth: A Non-Communist Manifesto.'
2. The first stage, 'traditional society,' is characterized by subsistence farming and limited technology.
3. Rostow argued that foreign investment and aid can help facilitate a country's progression from one stage to another.
4. The final stage, 'age of high mass consumption,' is when economies shift towards consumer goods and services as the primary focus.
5. Critics argue that Rostow's model oversimplifies the complexities of economic development and does not account for cultural, historical, and political factors.

Review Questions

• How does Rostow's model explain the process of economic development in different countries?
  • Rostow's model explains economic development through five distinct stages that all countries are expected to follow as they industrialize. These stages start from a traditional society with little technological advancement and progress to an age of high mass consumption where consumer goods dominate the economy. This linear view suggests that by following the prescribed pathway, countries can achieve similar levels of economic growth, highlighting the importance of foreign investment and supportive policies during the transition.
• What are some criticisms of W.W. Rostow's theory of economic development?
  • Critics point out that Rostow's theory oversimplifies the development process and fails to consider the unique historical, cultural, and political contexts of different countries. They argue that not all nations follow the same developmental trajectory and that factors such as colonial history, social structures, and external influences play crucial roles in shaping a country's development path. Additionally, Dependency Theory challenges Rostow’s notion by emphasizing the impact of global inequalities on less developed nations.
• Evaluate the relevance of Rostow's model in today's global economy, considering contemporary challenges faced by developing countries.
  • In today's global economy, Rostow's model can be seen as both relevant and outdated. While it provides a clear framework for understanding economic growth stages, many developing countries face unique challenges such as climate change, political instability, and global inequality that are not adequately addressed by a linear model. Additionally, globalization has altered traditional pathways to development, allowing for more diverse strategies that may not align with Rostow's stages. This complexity calls for a more nuanced approach to understanding economic development in the modern world.

Related terms

Modernization Theory:

A theory that suggests that societies progress through similar stages of development, leading from traditional to modern societies.

Stages of Growth:

Rostow's five stages include traditional society, preconditions for take-off, take-off, drive to maturity, and age of high mass consumption.

Dependency Theory:

A counter-argument to Rostow's model, which asserts that underdevelopment in some countries is a result of their historical exploitation by more developed nations.