Walt Rostow

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Maltie Jaglal
I.D. No: 810002105
LECTURE 1/SLIDE 18
THEORY/THEORIST: Modernization Theory - Walt Rostow
TOPIC: “‘Traditional’ countries can be brought to development in the same manner more developed countries have.” According to Walt Rostow, 1960, modernization theory refers to a theory which states that development in developing worlds can be attained through following the processes of development that are used by currently developed nations. Walt Rostow postulated a five stage model of development that will be able to apply to all countries. Rostow’s model is partial and does not take into account certain factors of developing countries. His theory identified problems in developing countries are due to “historical backwardness” without taking into account the historical realities of dependency that characterized the economic past of developing countries. Rostow’s first stage, Traditional Society, identify agriculture as the most important industry, but developing countries, such as Grenada, whose economy is based on exports, are restricted by trade policies and competitions from the international market, so revenue is a challenge. Also, for example Grenada, developing countries, because of their limited land space, cannot be compared to developed large countries who can mass produce. His second stage, Transitional/Precondition for Takeoff, where surpluses for trading emerge, savings and investment grow and entrepreneurs emerge; in developing countries many young entrepreneurs ended their venture and found it more lucrative to be employed by an organization because of the high expense of machinery and low rate of return. His third stage, Take Off, where industrialization increases and new political and social institutions are evolved to support industrialization; most developing nations are in financial deficit to the IMF and World Bank and industrialization is challenging. Another example; in Grenada their economy is limited to agriculture and...
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