2. Who was Walter Rostow?
Walt Whitman Rostow was
born in 1916 to two Jewish
emigrants from Russia
Rostow had advised for the
Eisenhower Administration,
worked under two other
presidents (Kennedy and
Johnson), and taught for
numerous prestigious
colleges.
His most famous book on
economy was The Stages of http://upload.wikimedia.org/wikipedia/commons/e/e9/Walt_Rostow_1968.jpg
Economic Growth
3. The Stages of Economic
Growth
In his book, Rostow theorized that each and every country goes
through 5 stages of economic growth
First stage: A traditional society, with subsistence agriculture,
and a domestic industry
Second stage (preconditions for take-off):localized resource
undergoes development, and an export economy thrives
Third stage (take-off): Exploitation of a major resource leads to
a rapid political change
Fourth stage (drive to maturity): The society creates a more
diverse industrial base and increases trade
Fifth stage (age of mass consumption): an advanced
development of an industrial economy occurs
4. Controversial?
Rostow’s five, uneven stages
contrasted to the other
models of his day.
Economists felt as though his
model was too vague, varied
too much at each country,
and included far too many
factors (instead of only
taking into account output,
production and technology).
http://www.coverbrowser.com/image/economics-books/548-8.jpg
5. Rostow’s Reasons for His
Theory
http://farm3.static.flickr.com/2038/1510234297_c0a6e9643e.jpg?v=0
Rostow had observed how production in “leading sectors” would spill
over into less developed ones, and how investments in production
processes could alter the economy.
He decided to create a model to that emphasized, “the uniqueness of
each nation’s experience.”
However, many modern day economists still consider his model to be
very western, and say that nations may develop in other ways
6. Why is this important?
http://media.us.macmillan.com/jackets/500H/9780374531621.jpg
Rostow’s model has become
a fundamental subject in
many introductory classes on
economics and human
geography.
His model began heated
discussions and experiments
among economists in in
many countries
7. Why is this important?
(cont’d)
Scholars from different backgrounds began to
get involved in these discussions, and more
diverse and universal theories were created.
People began to accept that development
was complex, involved numerous variables,
and was an uneven process.
