Binn points out that both men realized that the new activity and growth would be centered in the early expanded regions creating a vacuum by pulling skilled persons and money out of the local economy. But, they also realized that because the expanded regions will stimulate economic growth elsewhere making up for the drain. Binn pointed out that Hirschman recognized that one or two regional centers seem to be needed for the economy to lift itself to higher income levels. Hirschman felt that government should not intervene since the drive for greater profits would lead to “a spin-off of growth inducing …show more content…
After WWII most theories andmodelswere deeply rooted in Western points of views and these views were applied to everything. This way of thinking , although inappropriate, was commonly accepted. Binn goes on to show how Walt Rostow and his unilinear model were a widely accepted model. This model used a series of stages to show how a country’ seconomy and society progressed. Rostow’s theory is considered as one of the most influential modernization theories to emerge. Binn notes that the key element of Rostow’s thinking was the process of capital formation achieved by passing though his five stages of economic growth. He separates these stages as follows: 1) Traditional Society, 2) Preconditions for Take off, 3) Take-ff, 4) Drive to Maturity, and 5) Age of High Mass Consumption. Binn stated that Rostow’s thinking hadconsiderableinfluence on development planning at the time. But his thinking (Rostow’s) had also been criticized