The political power was of the transition rds, it is a society regard, family and clan relations essential for export promotions. physical world hands of landed aristocracy. Since can be described legitimately as a rise in the ow, a traditional the savings of the nations were diverted rate of investment to a level which regularly, acture is developed unproductive expenditures like we rate of Wen substantially and perceptibly outstrips and technology and and funerals, the capital formation as the pre-takeoff stage, the rates of udes towards the important tool of economic developmer savings and investment are likely to be under remained suspended in such tradition 5% of the net national product in an economy. any centuries to be litional society is (2) The Preconditions for Takeof During this stage, the foreign assistance is island changeless The second stage of economic developmenti heavy key industries are emphasised on needed for economic growth. The basic and characterised by one in which the preconditions are create the level of output, for sustained economic growth in an economy priority basis. It may be considered a slow Cion and but steady drive from the farm economy to per capita It may be called a transitional are industrial economy. dvanced scenes responsible for creating the preconditions i (3) or takeoff stage. These conditions mainly relat The Takeoff: The takeoff is a crucial and decisive stage. In this stage, the economy to fundamental changes in the socioeconomi transforms itself of and political structure of the society. T more or less into a self- the new methods of preconditions for sustained economic growth economic growth subsequently starts to take sustaining economy. In other words, the stage changes into Medieval Age (ie the end of 15th century were created gradually since the end place automatically.
The takeoff stage is defined “as s the interval during which the rate to the beginning of the modern age (i.e, the of investment Increases in such a way that that “the limitations through this stage during the First Five-yeu techniqnes of production and the disposition of the agricultural West European countries. India passe increase carries with it radical changes in the Einning of the 16th century in the U.K. ani real output per capital rises, and this initial In this stage, the society passes throup of income flows which perpetuates the new scale of investment and perpetuates thereby in occupation of the technological developments, techniques, risi {them used to work taking and profit earning, the adaptability inventions, the application of scientific al changes including its attitude towards the rising trend in per capita output.” eavers and other the labour force, political freedom It is such a very short period in which the macroeconomic parameters change sharply: These parameters or economic variables are, namely, the rates of growth of the output, per capita income, savings, capital formation and investment which have the sharp changes. In this period, the society also shifts from one system to the other. In fact, it is a phase of an economic revolution in which an holds self-sustaining and self-generating economic growth. The Prerequisites for Takeoff: Rostow points out three main conditions or prerequisites for takeoff which are as follows: (1) a rise in the rate of productive investment from, say, 5 per cent or less to over 10 per cent of national income or net nati come or net national product; (ii) the development of one or more prod substantial manufacturing sectors with a high rate of growth; and (iii) the existence or quick emergence of a political, social and institutional framework which exploits the impulses to expansion in the modern sector and gives to growth an outgoing character.
Now we examine here briefly these conditions for “the takeoff”. (1) Increase in the rate of investment to over 10 per cent of national income : The most essential condition for the takeoff is that there should be an increase in per capita income, and that should the growth of population, so as to maintain a higher standard of living in the economy. According to to Rostow, this higher standard of living was possible when the rate of investment increases from 10 per cent of the nation dearly 5 to over income. (2) Development of leading sectors: The cond important condition for the takeoff is the development of more than one leading sectors in the economy. Rostow recognised the development of leading sectors as the “analytical bone structure of the stages of economic development. There are three main sectors of an economy in general which are as under: (i) Primary growth sectors: They lead to a higher growth rate in the economy, specially in the fields where there are the possibilities of innovation or of exploiting new or unexplored resources. The cotton textiles societies surpass ther reason, it may of life and way better life. It is in second pastoral into the beyond which they Plan.
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