Academics have spent much time discussing these changes to see if there is a consistent
pattern of development. The ‘stages of growth’ theory developed by Rostow provides a
useful starting point.10 He argued that as economies grow they go through a series of different phases which he put into five categories according to the stage of economic
development they had reached. The five stages are shown in Box 10.2.
There has been a good deal of discussion of Rostow’s work. Like so many economic
theories, Rostow’s theory is based in a simple common-sense idea. As economies grow
they start by producing necessities such as infrastructure which are resource-intensive,
then progressively turn to the finer things of life (value-added products) as they become
wealthier.