How developed is the economy of Bangladesh?

Rust's theory is very popular in development economics. In 1960, Walt Whitman wrote a book entitled The Stages of Economic Growth: A Non-Communist Manifesto (1918-2003). In the second chapter of the book, entitled 'Five Levels of Growth', he discusses the concept of development. Rust, however, is indebted to the novelist Thomas Mann's famous novel The Badenbrooks, published in 1901. In his Badenbrooks, Thomas Mann writes about three generations whose first generation focused on economic development. The second generation fights for their position in society. And the third generation of Thomas Mann, who already has money, is focused on music and art over anything mundane; Economic growth or influence in the society is a secondary issue for them.

According to Rust, the growth of any country or nation basically exceeds five levels. These are one, 'traditional' society, two, 'pre-condition to take-off', three, 'take-off', four, 'drive to maturity' or development mature. Levels and five, the ‘Ages of Mass-Consumpson’ or mass-consumption level.

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In the past, many countries and nations have adjusted their economic development to Rust's "Five Levels of Growth" theory. Attempts are being made in our country to show how advanced we are by using different development ideas. Many are arguing for and against the current 'improved' situation. Before we estimate how much our socio-economy has improved, let us first briefly discuss the five steps of growth of the economist Rust.

One.

Conventional socio-economics. Conventional socio-economics is basically an early stage economy. In such a society, the subsistence of the economy is engaged in such activities including subsistence farming, animal husbandry and fishing for their livelihood. The use of technology in such a society is very limited. The use of technology is temporary and not premeditated. Although some improvement and progress is visible in processing, the capacity is very low. There is no economic dynamism of any particular individual or class. The stability and change of priorities are viewed negatively. In such a socio-economy, the centralized political system does not work that way. Wars, epidemics are casual issues of this society. Labor productivity is very low and the contribution of investment to the total economic output is 5 percent or less.

Two.

Development is the pre-flight level. ‘Pre-conditioned to take-off’ or development aviation level creates a huge demand for foreign raw materials in a country’s economy. Increases production and export capacity of agricultural and industrial products on a commercial basis. In addition to food grains, cash crop production in agriculture has increased at a significant rate. The demand for construction of irrigation, drains, ports etc. is increasing in the country. In addition to the vast changes in the current technology used, the tendency to use new technology increases. Economic dynamism increases in both the individual and class sectors. In such an economy, with the spread of the concept of national identity, the society became enthusiastic about the divided use of economic resources. The contribution of investment to the total production exceeds 5 percent. According to Rust, the government plays a key role in creating and investing in social capital.

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Three.

Development aviation level. The ‘take-off’ or development flight level is very dynamic. Rapid dynamism in the fields of society, politics and technology is evident. Urbanization will increase in socio-economy. In the case of industrialization, there is a special tendency and even in some cases forced industrialization is observed. At this stage of the Industrial Revolution, the garment and weaving industries spread rapidly. The economic activities of the primary sector are rapidly immersed in the economic activities of the secondary level. Green revolution can come in agriculture. Each sector contributes to the economy. Contrary to the prevailing concepts in the society, the conceptuality of process gains breadth and transformation. Economic growth became a stable sustainable concept. According to Rust, a country's economy invests 5 to 10 percent of its gross domestic product in the productive sector at the take-off level. In such an economy multiple production channels mature. Due to the interdependence of a country's aviation-level economy, it is also aware of the economic dynamics of neighboring countries.

Four.

Level of maturity. According to Rust, a country’s economy has to wait long enough to move from a ‘take-off’ level to a maturity level. In some countries, the waiting period between these two levels has been as long as 60 years. During this period of waiting, the economy achieved a sustainable development journey. At the level of ‘drive to maturity’ or development, the expansion of multiple industries in a country’s economy is noticeable. The industrial base gets multidimensional diversity. Any new industry also spreads very fast.

Investment conversion is important at this stage of economic maturity. At this stage, investment in consumer goods and household-consumption-products prevails over the production of capital goods. Construction of public transport infrastructure is a high priority and is being implemented quickly. Large investments are made in various sectors of the society such as schools, colleges, hospitals, parks etc. Developing, fast and secure public transport sector, improved telecommunication etc. services can be disrupted. With the assurance of the use of advanced technology at all levels of production, the use of labor in agriculture may fall from 75 per cent to 20 per cent, although real wages in agricultural labor are guaranteed. At this stage of production, considerable aspects of environmental damage are assessed and nurtured.

In a mature economy, previously imported products are produced locally. Emphasis is placed on export oriented production system and use of local raw materials. At this stage of economic development, some countries have achieved the ability to reinvest 10 to 20 percent of GDP in line with population growth.

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Five.

Mass-consumption level. The industrial sector is the main controlling force in the ‘Ages of Mass Consumption’ of the economy. The early style industry almost became extinct. High prices and ideological consumer goods predominate. Consumer income increases consumer spending. Consumers still have a lot of money left over after basic expenses. Consumers enjoy the freedom of choice at every level of consumption, as in every case there is an offer of alternative consumption. Urban society prevails. At this level of socio-economy, the subsistence of the economy can enjoy the order of choice. They can use resources by analyzing the cost of arms or security, equality and welfare. The nation that has reached this level builds an egalitarian society.

Rust, however, later discusses another level of development beyond the level of mass consumption in his book Politics and Economic Growth, published in 1971. The level of ‘Beyond Consumption’ can lead to the expansion of consumer speculation or fiction and consumerism. The subsistence of the economy will concentrate on comfort, peace of mind, etc. at this level. Consumers will spend more on services and luxury goods than on consumer goods.

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Six.

Comparative discussion.

Rust's 'Five Steps to Development Growth', briefly discussed, is a practical topic in the development history of many so-called developed or underdeveloped countries today. In some of the most backward countries in Africa, such as Ghana or Tonga, the economy of the prevailing social system is observed. Although some positive growth has been observed in these countries, it is nothing but some surplus production on their vast barren agricultural lands.

Like many countries in Europe and Central Asia, today's developed countries, Australia and New Zealand, have surpassed the previous level of economic development. Even the Industrial Revolution in Great Britain is remembered as an example of the ‘pre-condition to take-off’ level of Britain’s economic progress.

Analysis of the Rust Number Theory shows that Great Britain was still at an economic take-off stage in the early 1800s, and by 1850 they had reached maturity. There, the United States was at a "take-off" level from 1843 to 180, and in 1900 it became a mature economy. Russia moved from the take-off stage from 1890 to 1914 and reached the stage of a mature economy in 1950. Although the Indian economy was at the so-called take-off level in 1952, it is still a matter of assessment as to whether its economy has reached maturity.

The Beyond Consumption level currently takes into account the economies of the United States and Japan. Analysis of the economic activities of the two countries shows that there is more demand for service products than consumer goods. The subsistence economy of these countries spends beyond the levels mentioned by the economist Rust towards the desired goal of quality of consumption.

The onus is on the reader to accurately assess the stage of Bangladesh's economic development.