Economics(Paper-4) - Shivaji University

structure of the traditional society was based on primitive technology and orthodox
ideas of the people. In this stage modern facilities of technology and science were
absent. The economic activities were carrying out in such societies with simply tools
and implements. And activities were confined only to meet the domestic needs. In fact
pre-industrial revolution societies could be called as traditional societies. The agricultural
production could be increased by bringing more land under cultivation. The increase in
agriculture production conformed to diminishing returns. The reason for diminishing
returns was absence of modern science and technology. The people were more
interested in spiritual and religious pursuits rather than material and physical world. In
brief the society revolved around agriculture. Other economic activities such as
manufacturing, trade etc. are depended on agriculture. Thus agriculture was the main
occupation of the people in the traditional society.
On the above explanation, the characteristics of traditional society can be
summarized as follows;
i. The agriculture was carried on with the primitive methods of production.
i. Law of diminishing return operated in agriculture.
i. There was absence of modern science and technology.
iv. The structure of the society was based on inheritance.
v. The political power was concentrated in the hands of big landlords.
vi. Increase or decrease in population was along with Malthusian lines.
These characteristics clearly depict the economic, social and political structure of
the traditional society.The societies of Pre-Newtonian are called the traditional society.
2. The Pre-Conditions for Take-off
This second stage of growth is a process of transition, which involves changes in
economic, social and political structure of the traditional society. According to
Kindleberger, “the pre-conditions stage involves slow changes especially in attitudes
and organization. The idea of economic improvement takes hold, and with it the frozen
traditional rigidity breaks becomes cheaper, and commerce spreads. New production
functions are adopted in agriculture and industry. But the pace is slow”.
During this stage, education spreads, mental horizon broadens and economic
activity expands. New enterprising men come forward and encourage the will to save.
They take risk in the pursuit of profit. Banks and other savings institutions attempt to
mobilize capital. Investment opportunities expand in other sectors, like transport and
communications etc. The scope for internal and external trade widens. New
manufacturing processes are developed. In general, the pre-conditions for take-off require
changes which touch and alter the traditional social structure, political system and
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