What does takeoff mean?In the economy, the achievements of the scientific revolution are actively, large-scale and consciously applied to economic activities. Therefore, the ratio of factor input can be changed, and then the level of economic growth can be greatly improved to improve human welfare., he thought, from a traditional economy to a modern economy, the key is to have a double of effort, to have a acceleration, so he is out of the plane, find inspiration, the plane to take off, is to have instant acceleration, did not have enough acceleration, gravity is constantly being resist, aircraft thrust if can not exceed craft is not up to the earth’s gravity.So he thinks the take-off phase is a very critical factor in economic growth.Based on past history, especially western experience, he Outlines three conditions for “take-off”.
The first is investment.Investment accounted for less than 5-10 per cent of national income, and at the current rate of capital output growth would not have exceeded 3 per cent.If you don’t go above 3 percent, you’re not going to be able to offset population growth, you’re not going to offset population growth.Although the economic aggregate is huge, but the per capita does not continue to improve significantly, that can not be called modern economic growth.Modern economic growth is defined as a sustained and marked increase in per capita income.So the first one is a 5% to 10% investment rate.
Second, there should be some leadership.Since economic growth is a process, it will take the lead in some fields and some production sectors, and then transmit to other sectors.This kind of shoulder engine forward the department must have the obvious growth effect.The textile industry in the early years of the United Kingdom, the railroad construction in the United States, the chemical industry in Germany, etc., this is the second idea, to form the dominant growth sector.
The third is very important, and this is what sets Rostow apart from many other economists, because he brings science, technology, innovation, risk-taking and entrepreneurship into his analysis of economic growth that most economists cannot handle.A third important condition, he argues, is the formation of a vibrant class of entrepreneurs who take risks and innovate to gradually bring technology into the economic process.
If these three measures are in line, the economy will take off. Generally, the take-off will last for 20 or 30 years, and then it will become mature, which will lead to high public consumption and high quality of life.This is probably the basic characteristic of Rostow’s economic growth theory.