Rostow's theory of economic growth has no direct appication to developing countries?

Answer 1

Rostow's thesis assumes a strong bias towards a western model of modernization. It de-emphasizes any difference between how leading sectors develop in free and controlled markets. However, Rostow’s consideration of non-western cases such as China shows that to some extent, modernization can be achieved in different ways and through free market or controlled economic means and still fit into his model. It is more at his description of the final age, the age of high mass consumption, where controlled economies seem most to find no niche in Rostow’s work. Even there, though, it could be said that the society seeks out economic equality at the complete detriment of any luxury.

The most disabling assumption that Rostow is accused of is trying to fit economic progress into a linear system. This charge is correct in that many countries make false starts, reach a degree of transition and then slip back, or as is the case in contemporary Russia, slip back from high mass consumption (or almost) to a country in transition. On the other hand, Rostow’s analysis seems to emphasize success because it is trying to explain success. To Rostow, if a country can be a disciplined, uncorrupt investor in itself, can establish certain norms into its society and polity, and can identify sectors where it has some sort of advantage, it can enter into transition and eventually reach modernity. Rostow would point to a failure in one of these conditions as a cause for non-linearity.

Another problem that Rostow’s work has is that it considers mostly large countries: countries with a large population (Japan), with natural resources available at just the right time in its history (Coal in Northern European countries), or with a large land mass (Argentina). He has little to say and indeed offers little hope for small countries, such as Rwanda, which do not have such advantages. Neo-liberal economic theory to Rostow, and many others, does offer hope to much of the world that economic maturity is coming and the age of high mass consumption is high. But that does leave a sort of 'grim meathook future'[1] for the outliers, which do not have the resources, political will, or external backing to become competitive.