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What does Rostow predict?
For Rostow:
• Savings and capital accumulation (formation) are central to the procedure of growth therefore development
• The solution to development is to mobilise savings to produce the investment to set into train self making economic growth.
• Development can stall at level 3 for lack of savings 15 to 20 percent of GDP needed.
• When S = 5 percent so that aid/loan = 10 to 15 percent plugs savings spaces. Resultant investment implies a move to stage four Drives to Maturity and also self generate economic growth.
The prevention of main swings in economic activity can be handled most simply by the household sector. Explain why?
my fgeind lewis wants ro know about hard and soft hr and whats good and whats bad about it so cabn u answer pelase
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