What are the different phases of economic growth?
According to Walt Whitman Rostow, an American economist who became a national security advisor during the presidential administration Johnson, there are five phases of economic growth. They include riding maturity, traditional society and high mass consumption. The other two are the prerequisites for take -off and take -off. Rostow developed and wrote about its theory of economic growth in a book entitled "Economic Growth phase: non -communist manifesto" and claimed that all companies can be categorized in one of the phases. "Rostow's growth phase" is only one of the theories concerning economic growth and development, but is one of the most common and influential among many economic theories. It is also limited in terms of product outputs, as technological resources are very limited, USUALLY results in a high dependence on the agricultural industry. Companies at this stage are also usually influenced by calamities such as famine, plague and wars, but that does not necessarily mean that political and economic conditions were unstable. EKonomas can group the early Chinese dynasties and some African tribes that still exist today to be under traditional society.
Among the many phases of economic growth, the second phase of take -off is most considered to be a temporary phase where society seeks to accept change as a means of development. In general, there are usually three events in the company that is preparing for development, one of which is the growth of other industries, usually due to the influence of other companies that are more developed. International trade also increases and profits from Prosper and trade are assigned to expand multi -industries and businesses. Agriculture can still play an important role because production can be part of international trade.
As soon as all opportunities open, the company's economy goes to the take -off phase where there is a sudden increase in growth in terms of wealth andresources. At this stage, the traditional form of the economy has completely overcome to become a modern and progressive economy. Rostow describes companies at this stage as a "independent growth" that drives them to the next phase of economic growth. This can take a long time, sometimes up to century to achieve the progressive state of quo and achieve the highest stages of economic growth. This period of maintenance is the fourth phase, the journey to maturity.
As soon as the economic condition of progressive society is stable for a long time, society will now enter the last phase, the age of high weight consumption. At this stage, ExperimeniCES is such a technological and industrial progress that can decide to distribute its resources to other so -called needs such as social security and military force. However, a country that has reached the required higher phases of economic growth cannot guarantee that its economic progress will not turn.