Economics, Society and Development

This stage (Drive to Maturity) is the period of rapid technological change, introduction of new management methods, expansion of international trade and extensive use of credit. The growth of the economy is rapid with high employment level and high income.

High Mass Consumption Stage.  The benefits of specialization and automation brings out a high level income to the population thus giving them access to an abundance of consumption goods. Society begins look towards enjoyment of leisure rather than hard-nosed economic struggle. At this point, education for professional training is emphasized to meet the needs of the society with high technology and complex business organization.

This is the stage of acceleration of economic in the economy. By this time the productive activity has expanded through technological change and increased investment. By this time, employment is high and the domestic and foreign markets are being fully developed. So rapid is the change taking place at this stage that education and training must be stepped up to provide the manpower requirments for the changes and expansion of trade, industry and agriculture. At the same time the total value of the goods and services produced in the economy is sustained at seven (7) percent per annum, way above the annual population growth rate.

This is the situation in a society wherein the people depend upon land as a basic resources for their livelihood and where the production techniques are more or less the same for many years. Diminishing returns from farming takes place as the population grows. As a result; production is marginal, meaning that output values tend to be only equal to inputs so that households could produce only equal to their basic needs. Very little or no saving is accumulated for investment purposes.