Routledge Dictionary of Economics, Second Edition
The crucial stage of economic DEVELOPMENT when an economy ‘takes off’ into steady growth because its capital-output and savings ratios rise to at least 10 per cent of national income. This first occurred in the older industrialized countries—in Great Britain in the 1780s, in the USA in the 1820s, in France and Germany in the 1850s.
Critics of this approach to development have asserted that it ignores the interplay between economic, social and technological determinants. However, the proponent of this theory, ROSTOW, argued from an examination of economic trends that there are five stages of growth: the traditional society, preconditions for takeoff (e.g. INVENTIONS, the rise of ENTREPRENEURS), take-off, the drive to maturity and the age of mass consumption.
References
Rostow, W.W. (1960) Process of Economic Growth, 2nd edn, Oxford: Clarendon Press.
——(1971) The Stages of Economic Growth: A Non-communist Manifesto, 2nd edn, Cambridge: Cambridge University Press.
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