Rostow's Stages of Growth: A linear model suggesting that all countries pass through five distinct stages to reach high levels of development.
Stage 1: Traditional Society: Economy based on subsistence agriculture with limited technology and a rigid social structure.
Stage 2: Pre-conditions for Take-off: Transition period where external demand for raw materials initiates change and infrastructure begins to develop.
Stage 3: Take-off: A short period of intensive growth where industrialization begins and workers shift from agriculture to manufacturing.
Stage 4: Drive to Maturity: Long-term growth where the economy diversifies into new areas like technology and consumer goods.
Stage 5: High Mass Consumption: The final stage where the economy is dominated by services and high-value consumer goods, and the majority of the population enjoys high levels of wealth.
Top-Down Strategies: Large-scale, expensive projects usually led by governments or Transnational Corporations (TNCs). Examples include massive dams or industrial zones intended to create a 'trickle-down' effect.
Bottom-Up Strategies: Small-scale, low-cost projects organized by NGOs or local communities. These focus on immediate needs like clean water, local clinics, or micro-finance for small businesses.
Sustainable Development Goals (SDGs): A set of 17 global goals established by the United Nations to address poverty, inequality, climate change, and environmental degradation by 2030.
| Feature | Economic Growth | Economic Development |
|---|---|---|
| Focus | Quantitative (GDP/GNI) | Qualitative (Quality of Life) |
| Scope | Single dimension (Income) | Multi-dimensional (Health, Education, Equity) |
| Measurement | Real GDP growth rate | Human Development Index (HDI) |
| Requirement | Increase in production | Structural and institutional changes |
Distinguish Growth from Development: Always clarify that a country can have high economic growth (e.g., from oil exports) without achieving high economic development if the wealth is not invested in social services.
Analyze HDI Components: Remember that HDI is a composite. If a question asks why a country has a low HDI despite high GNI, look for data on low life expectancy or poor education access.
Evaluate Strategies: When discussing development schemes, use a balanced approach. Mention that while top-down projects provide infrastructure, bottom-up projects ensure community resilience.
Check for Sustainability: Modern exams prioritize the 'Sustainable' aspect of development. Always consider the environmental and long-term social impacts of any economic policy.
