awokoya - 1.The take-off is considered as the great...

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1.The take-off is considered as the great watershed in the life of modern society. In that time, it is assumed that national investment and development in manufacturing exceed 10 per cent of national income. It is emphasized on the development of modern social, political and economic institutions. It is the time when growth becomes its normal conditions. In the 1890, when the industrial revolution was occurred in the England, basically its started the journey of industrial innovation. It is considered that it will continue for about two decades. Rostow described this stage as an industrial revolution, tied directly to radical change in the methods of production, having their decisive consequence over relatively short period of time. The take-off stage of this model represents the capitalist manifestation and spread the neo- colonialism in the world. The recent scenario of the world population also said that the development only for the western world. If underdeveloped country is developed themselves but ultimate difference between the developed and underdeveloped never be decreased. So it is true that whole idea of this economic growth model is depend on the context of any enderdeveloped country where the particular country can agree with the model or not. What is said by Rostow about the capital-output ration in the underdeveloped countries that implies constant return to scale and this assumptions is valid in the case of advanced economies. In the perspective of the underdeveloped countries where their economies are charactarized by the pre-dominace of agriculture and primary growth. So where the conditions of diminishing returns to scale for the expansion of the economy, this capital- output ratio not constant. See pp. 69-70 of text. 2.Neoclassical theory experienced resurgence in the 1980s. It is not coincidental that, during this same period, the governments of most of the industrialized nations were governed by conservative political parties. Neoclassical economic theory dismissed neo-Marxist theory as flawed and unrealistic. It also rejected structuralists' claims that developing countries' problems were due to structural impediments in the international economy and that domestic structural flaws required significant state intervention in the economy.
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This note was uploaded on 01/20/2012 for the course ECON 102 taught by Professor Econnorm during the Spring '11 term at Art Institutes Intl. Minnesota.

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awokoya - 1.The take-off is considered as the great...

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