Rostow’s theory looked at the country’s economic development as a process of gradual change and form a straight line. According to Rostow, the development of the country can be divided into five stages.
a. Phase traditional economy
At this stage the economy is still oriented to the effort to meet their own needs. Application of technology and management is still very low so that its productivity is still low.
Traditional societies though very slowly, constantly moving and at one point reaching a precondition for takeoff. This situation usually occurs because of interference from outside, ie from a more advanced society.
This stage is a transition period when people reach the stage of preparing for takeoff. Prerequisites that must be met to be able to take off is the presence of considerable changes in fundamental economic, political, social, cultural, and value systems. During this transition period is essential to succeed in the takeoff stage.
c. Phase takeoff
Take-off stage is the stage when the economy is able to grow and evolve with its own power. At this stage the application of modern management technology and more extensive and intensive. In addition, a drastic change in the social and political as well as the creation of rapid economic progress due to innovations and the opening of new markets. All that can increase the rate of investment which further accelerate the growth of national income over the rate of population.
d. Stage of maturity
This stage is a period when society was effectively using modern technology in most of the factors of production and natural wealth. At this time of rapidly growing sectors of the economy and leading industry suffered a setback, but was replaced by other sectors. Economic growth is not as high off the stage, but offset by the growth of qualitative matters so that the economy is getting stronger and independent. After takeoff the progress will continue to move despite the occasional ups and downs. Industry grew rapidly and began to produce goods previously imported.
e. Stage of mass consumption of high levels
At this stage the level of public consumption is very high, especially energy consumption. It can be seen in the lives of Western Europe, North America, and Japan.
The characteristics of this stage are:
- The labor force has a better warranty.
- Providing food for people who increasingly inadequate.
- State seeking the expansion of power in the eyes of the world.
Because of rising incomes, consumption is no longer limited to basic needs, but increased in the higher needs. At this stage are the traits of an ideal mass when people live comfortably so that there is a tendency to increase the number of families and the population will increase.
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