The Rostow Development Model

Paul Makhabane

Geography Essay: Topic 3

The Rostow development model specifies five stages of economic growth in a country’s development. Countries are seen to advance through the stages sequentially in this model. The first stage is known as Traditional Society and is characterised by subsistence agriculture and primary industries, lack of technology, social system is usually formalistic and trade is usually a form of barter as the monetary system is underdeveloped. After this stage country's go through “Pre-conditions foe take-off” which is characterised by a change in socio-political structure such as the formation of a central national authority of the land and the introduction of banks. The second feature being a change in production

During the pre-conditions for take-off stage the introduction of banks as another alternate form of acquiring capital help speed the society of the time towards becoming a more open society for economic growth and investment. Capital good in these two initial stages was essential for the country’s to eventually reach the Take-Off stage. Without raw materials industry would not be possible and thus most countries would not make it passed stage

An example of which, although forced, would be South Africa during apartheid. South Africa was largely unable to trade with any countries due to international sanctions and few international companies would invest in the country and stay invested for fear of their public image. The South African government, fearing national security, began developing weapons in the country. Although advanced weaponry such as helicopters, aircraft and naval vessel could not be made due to a lack of advancements in the scientific fields. During this time South Africa’s main use of national capital was towards providing arms for security and thus neglecting public services such as schooling and health care, further reducing education levels. For South Africa the pressure proved too great in the mid 1980s after the Transnational corporations finally un-invested. And thus feeling the full strain of producing for itself and being self-sufficient, apartheid ended. During the apartheid era many local industries opened such as the textile industry for supplying the population with clothes as well as telecommunications and electricity industries were set up (Telkom and Eskom). Although with the reintroduction of TNCs the textile industry proven not as competitive and no longer exists.

This proves that the effect that Transnational corporations have on a country in reducing the production