What is take off stage in economic development?

Question

What is take off stage in economic development?

Answer 1

The take off in the life of a society is a state, when growth becomes its normal condition. The take off is infect an industrial revolution which causes radical changes in the methods of production, and the forces of modernization prevails everywhere.

The take off period is supposed to be short, lasting for about two decades which is obvious from the history of the developed countries. The following are the conditions.

1: the first and essential condition for take off is a rise in the rate of productive investment from say five percent or less to over ten percent of national income. In other words the percentage rate of investment must be five or six times greater than the percentage increase in population.

2: The second condition for take off is the development of one or more leading sectors in the economy. According to Rostow, the rapid growth of the leading sector depends on the presence of four basic factors.

First, there must be an increase in the effective demand of their products.Second, a new production function along with an expansion of capacity must be introduced into these sectors.Third, there must be sufficient initial capital and investment profits for the take off in these leading sectors.Lastly, these leading sectors must introduce expansion of output in other sectors through technical transformation

Answer 2

This is rather a rehtoric and uses an aeronautical analogy to descrive how countries remain economicall dormnt for long and moves along the a stagnant situation and then runs fast to take the aircraft take off from the ground of low level of stagnation and then gain flight in a rising slope and then in a falling slope at a higher level of flight. The Rostovian take-off model (also called "Rostow's Stages of Growth") is one of the major historical models of economic growth. It was developed by W. W. Rostow. The model postulates that economic modernization occurs in five basic stages, of varying length.

Traditional society

Preconditions for take-off

Take-off

Drive to maturity

Age of High mass consumption

Rostow asserts that countries go through each of these stages fairly linearly, and set out a number of conditions that were likely to occur in investment, consumption and social trends at each state. Not all of the conditions were certain to occur at each stage, however, and the stages and transitions periods may occur at varying lengths from country to country, and even from region to region.

Rostow's model is one of the more structuralist models of economic growth, particularly in comparison with the 'backwardness' model developed by Alexander Gerschenkron. The two models are not necessarily mutually exclusive, however, and many countries seem to follow both models rather adequately.

Beyond the structured picture of growth itself, another important part of the model is that economic take-off must initially be led by a few individual sectors. This belief echoes David Ricardo’s comparative advantage thesis and criticizes Marxist revolutionaries push for economic self-reliance in that it pushes for the 'initial' development of only one or two sectors over the development of all sectors equally. This became one of the important concepts in the theory of modernization in the social evolutionism.

Take-off then occurs when sector led growth becomes common and society is driven more by economic processes than traditions. At this point, the norms of economic growth are well established. In discussing the take-off, Rostow's is a noted early adopter of the term “transition”, which is to describe the passage of a traditional to a modern economy. After take-off, a country will take as long as fifty to one hundred years to reach maturity.