Critique o f Porter’s Stages o f Economic Development
Both classical and non-classical economists have presented theories regarding
an economy’s ability to continue to grow or the reasons for which it is doomed to
stagnate. In recent decades, theories were articulated in an attempt either to explain
the reasons behind the poor countries’ under-development or propose the necessary
processes necessary for their development. ‘Stage’ theories, though, were attempting
to address both of the issues mentioned above. These theories used the historical
approach, and their main argument is that the evolution of an economy follows a
pattern, possibly uniform, of consecutive stages.
Stage theories were extensively explored by members of the German historical
school. They were based on the assumption that primitive economic systems are the
first steps towards more advanced economies. They also tried to include cultural and
sociological explanations regarding the transition mechanisms among the stages. Most
well-known among these early theories is that of Karl Marx, which identifies three
stages: primitive communism, feudalism, and capitalism. After analysing the factors
that led to the creation of the third stage, capitalism, Marx predicts its eventual
downfall and its replacement by a fourth stage, communism.
An alternative theory to Marx’s views and one of the best known current
stage theories, is that of Rostow, first articulated in 1961. Rostow (1961) describes
five stages in a society’s growth process: traditional society, preconditions for
takeoff, takeoff, the drive to maturity, and high mass consumption. Small economic
changes are seen as leading to inevitable fundamental shifts in a society’s economic
and political institutions, especially during the ‘takeoff stage. Rostow supports his
theory with ample historical details, describing the evolution of many diverse
societies. His theory has been considered a significant contribution, although it has
also been highly criticised, especially for the inevitability of the transitions from one
stage to the next.
45
In a general assessment of the