7.5

• stages of economic growth - all countries wanted to modernize, and that all would, though at different speeds:

  • stage 1: traditional society
  • stage 2: preconditions for take-off
  • stage 3: take-off
  • stage 4: drive to maturity
  • stage 5: high mass consumption
• Traditional Society


  • Depends upon primary sector activities (farming, fishing, hunting) for subsistence
  • Uses limited technology
  • Carries out local or regional trading
  • Enjoys limited socioeconomic mobility
• Preconditions for Take-Off


  • Improves infrastructure (roads, electrical grid, water systems, etc.)
  • Improves farming techniques and shifts toward commercial agriculture
  • Exports agricultural and raw materials (international trade)
  • Diffuses technology more widely
  • Starts individual socioeconomic mobility
• Take-Off


  • Develops major technological innovations
  • Starts industrialization and primary sector begins to shrink
  • Spreads entrepreneurial mentality
  • Begins to urbanize
  • Initiates self-sustaining growth
• Drive to Maturity


  • Creates new industries while strengthening existing ones
  • Improves energy, transportation, and communication systems
  • Sees economic growth greater than population growth
  • Invests in social infrastructure (schools, hospitals, etc.)
• High Mass Consumption


  • Spends money on nonessential goods (consumerism)
  • Purchases of high order goods become common
  • Desires to create a more egalitarian society
  • Supports a strong tertiary sector
• Traditional Society


  • English colonies in North America in the 17h century
  • Medieval Europe
  • No entire country is at this stage today
• Preconditions for Take-Off


  • United States in the early 19th century
  • Nigeria today
  • Afghanistan today
• Take-Off


  • United States, mid-19 century
  • Japan, late 19th century
  • Bangladesh today
• Drive to Maturity


  • United States, late 19th century
  • Germany, early 20th century
  • Brazil today
• High Mass Consumption


  • United States, early 1920s to present
  • Japan, mid-1950s to present
• world systems theory - a dependency model, meaning that countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other
• core-periphery model - dividing countries into three types:

  • core: dominate and exploit peripheral countries for labor and raw materials
  • semiperiphery: share characteristics of both core and peripheral countries; act as a buffer between the core and periphery
  • periphery: dependent on core countries for capital; have underdeveloped industry
• commodities - raw materials like coffee, cocoa and oil