In the eighteenth century the theory of the stages of economic development began to evolve. Adam Smith believed that underdeveloped countries went through four stages in order to achieve a high level of economic growth. These stages were titled hunting, pastoral, agricultural and manufacturing. Karl Marx also believed that there were four stages, he titled them capitalism, socialism, feudalism and communism. It is believed that Rostow's theory which contains 5 stages is an extension of these …
showed first 75 words of 868 total

showed last 75 words of 868 total
…could not for see the technology innovations such as the internet that changes a countries way of communication. He definitely could not for see the speed of growth such as Canada and Australia's growth after learning from Britain and France. Rostow's theory is still used and is very credible for a 40year old theory. It highlights a country's need for investment and savings and recognises the importance of political, social and economic conditions for growth.