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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.
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