Discuss the characteristics of the second stage of development according to Rostow’s five stages of economic development

      

Discuss the characteristics of the second stage of development according to Rostow’s five stages of economic development

  

Answers


Dana
The economy undergoes a process of change in preparation for takeoff
The changes have to be fundamental in nature in the sociopolitical and production technique
There are three important dimensions to this transition from an agrarian to a manufacturing industry economy, opening of trade and other commercial activities to other regions creating international trade, surplus production obtained should not be wasted on the conspicuous consumption of land owners or the state but spend on the development of industries, infrastructure
Agriculture becomes commercialized and mechanized
Investment level should be above 5% of the National Income
Agriculture plays an important role in transition process as surplus quantity is used to support increasing urban production and become a major expert earner of foreign exchange
Government plays a major role in the development of social capital as it is rarely profitable.
There should be basic change in the attitudes of the society towards risk taking, changes in working environment and openness to change in social and political organizations and structure
Steep increase in the rate of savings and investment
This stage may take a long period of time

Dana05 answered the question on July 3, 2019 at 11:28


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