The Take-off stage

Several changes occur under the third stage of economic growth.

  • The economy experiences a substantial reduction in foreign aid dependence.
  • The rate of investment of national incomes increases from 5% to 10%.
  • Both domestic and foreign markets are likely to expand.
  • Increase in the real output per capita is likely to occur.
  • The economy also experiences the development of new technology in the s institutional and political systems.
  • High growth of the industrial sector, with linkage i.e. backward and for linkages in production.
  • Urbanization. The take-off state is characterized with urban expansion.
  • Monetization. The economy is largely monetized with low levels of subsistence production.
  • Resource control is shifted from landlords to a larger sections of society in to pursue productive investment activities.
  • There is increased investment in social capital i.e. infrastructure.
  • The economy tends to move towards self-sustenance; though this can take for at least 20-30 years.
  • Significant sectors of the economy tend to start showing up or emerging.
  • There is a break through in vicious circle of poverty.
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