2. Modern Theories of Industrialization

A. Rostow’s Stages of Economic Growth

Walt Rostow proposed a linear model of economic development in his 1960 work “The Stages of Economic Growth.” Rostow identified five stages through which societies progress: traditional society, preconditions for take-off, take-off, drive to maturity, and age of high mass consumption. His model suggests a pathway for nations to industrialize, arguing that all societies inevitably pass through these stages, which can provide a framework for policy-making.

B. Endogenous Growth Theory

Endogenous growth theory focuses on how technological innovation and knowledge accumulation drive economic growth within the context of industrialization. Unlike previous exogenous models that treat technology as an external factor, this theory asserts that investments in human capital, research and development, and innovation are integral to sustaining growth. This theory emphasizes the role of policy in fostering an environment conducive to technological evolution.

C. World Systems Theory

Immanuel Wallerstein’s World Systems Theory offers a macro-scale perspective on industrialization, framing the world economy as a complex system divided into core, semi-periphery, and periphery countries. Core countries are highly industrialized and dominate global markets, while peripheral nations often provide raw materials and labor. This theory illustrates the interconnectedness of industrialization across the globe and critiques the inequalities rooted in capitalist structures that perpetuate dependency and underdevelopment.