Economics(Paper-4) - Shivaji University

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Tentative Take-off years of Selected Countries Country Take-off Country Take-off Great Britain 1783-1802 Russia 1890-1914 France 1830-1860 Canada 1896-1914 Belgium 1833-1860 Argentina 1935 United States 1843-1860 Turkey 1937 Germany 1850-1873 India 1952 Sweden 1868-1890 China 1952 Japan 1878-1900 The above table shows that in Great Britain, France, Belgium and United States, the take-off occurred during the last quarter of the 18 th century and the first half of the 19 th century. Germany. Sweden and Japan experienced take-off in the latter half of the 19 th century. In Russia and Canada, the take-off occurred before the outbreak of first.world ware. Argentina, Turkey, India and China appear to be in the midst of take-off stage 4. Drive to Maturity: According to Rostow, “the period when a society has effectively applied the range of modern technology to the bulk of its resources”. In this stage many technical changes takes place, industrial development gets differentiated, new leading sectors gather momentum and the old leading sectors face extinction. The leading sectors like cotton textile industries railways, coal and heavy engineering industries, etc. lose their momentum and new sectors such as steel, ship-building, chemicals, electricity, machine-tools etc. appear to dominate the economy, and sustain overall growth. 10 to 20 per cent of the national income is reinvested and the growth of output regularly outstrips the increase in population. Dependency of peoples on agriculture sector diminishes. Increases industrial activities, trade expanses, social changes occur in large manner etc. changes take place in this stage. 5. Age of High Mass-Consumption: From Maturity the economy moves to the age of high mass-consumption. Being fed up with the fruits of industrial maturity, the people try to seek more leisure, more welfare and social security, etc. In this period resources are directed on a large scale to the production of durable consumer goods and services. This period is considered as an era of consumer’s sovereignty.According to Rostow, Western Europe and United States reached this stage in the beginning of the 1901. Great Britain reached this stage in 1930’s and Japan in 1950’s. Rostow believed that resources employed in the following three directions could 123456789012345678901234567890121234567 123456789012345678901234567890121234567 16 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567
promote and enhance social welfare. First, larger resources are allocated to military and foreign policies for achieving international recognition and external power and influence. Secondly, the resources of mature economy be directed to promote the welfare of society and thirdly, the state should direct its resources to the expansion of consumption levels beyond the basic necessities of life like food, clothing and shelter. Kindleberger (and not Rostow) illustrates these stages with a Gompartz or ‘S’ curve. Further development Income 1. Traditional 2. Preconditioning 3. Take-offTime 4. Maturity 5. Mass-Consumption 0 1 2 3 4 5 Time The diagram shows that a typical growth path of an economy. ‘S’ curve states that an economy starts its growth slowly, picks up gradually and then proceeds very rapidly before slowing down at some late stage to become asymptotic at some limit. B Critical Examination of the Rostow’s Theory: The important points of criticism against the Rostow theory are: 1. The technological Approach to Development is basically incorrect: In Rostow’s model development is not the result of policies; policies are the result of development. This cannot be accepted. This approach leads to logical confusion. 2. Leading Sectors may not ‘lead’: Kuznets and Cairncross are of the opinion that leading sectors may not lead. If we examine the development linkages of industries, we can find that cotton textile industry of Manchester or automobile industry of USA did not bring all the development. 3. Stage overleap and Works spill over to the Next Stages: Kuznets, Habakkuk, Cairncross and Meier have commanded that the things that are supposed to happen in a particular stage, may spill over to other stages also. 123456789012345678901234567890121234567 123456789012345678901234567890121234567 17 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567
Page 1 and 2: B. A. Part-III : Economics Paper 4
Page 3 and 4: 7) “ Economic development is a pr
Page 5 and 6: underdeveloped countries in compari
Page 7 and 8: developing states through the progr
Page 9 and 10: 7) Goals : objectives. 8) Disguised
Page 11 and 12: UNIT - 2 Theories of Economic Growt
Page 13 and 14: structure of the traditional societ
Page 15: help of example, “If we take marg
Page 19 and 20: B The Closed Economy : Assumptions
Page 21 and 22: B The Process of Economic Expansion
Page 23 and 24: consider the possibility of the cap
Page 25 and 26: gap between income and expenditure
Page 27 and 28: disequalising force is trade, which
Page 29 and 30: 8. Rostow developed his theory in
Page 31 and 32: UNIT - 3 Domestic Measures for Econ
Page 33 and 34: all kinds. Hence, capital formation
Page 35 and 36: policy. But these trio are and may
Page 37 and 38: 1) Provision of food to evergrowing
Page 39 and 40: the country.The central bank contro
Page 41 and 42: 7) Public Spending : Fiscal policy
Page 43 and 44: 3.3 Conclusion / Summary : Capital
Page 45 and 46: UNIT - 4 International Measures for
Page 47 and 48: Y P S C Import E D P O X1 X2 B X Ex
Page 49 and 50: for the developing countries has al
Page 51 and 52: they are entitled to get dividend a
Page 53 and 54: 4) Infrastructure : Since last thre
Page 55 and 56: III) Advantages of Multi-national C
Page 57 and 58: oundaries of nation states. 2) Mean
Page 59 and 60: 4.3 Summary : 1) Role of Foreign Tr

Economics(Paper-4) - Shivaji University

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