Transitional or pre-condition for take-off

There are a number of features characterized by this second stage of economic growth.

  • These are radical changes in agriculture, industry, infrastructure, foreign trade, etc.
  • Change in attitude from traditionalism to modernity, science and technology, etc.
  • Increased exploitation of the available natural resource potential.
  • Diversification in the economy where a wide range of goods and services are produced.
  • Economic transformation - there is a remarkable increase in the rate of investment (up to 5% of national income).
  • More foreign capital resources are increased.
  • New potential entrepreneurs begin to emerge.
  • Better and efficient techniques of produce tend to replace the rudimentary or outdated technology.
  • The economy becomes dualistic in nature where the modern sector expands at the expense of the traditional one.
  • Changes in political systems e.g. society moves from traditionalism, chief and colonialism to political independence.
  • NB: Uganda is currently under stage of development.
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