ORGANIZATION & SENIOR

HIGH
MANAGEMENT SCHOOL

Self-
PHASES OF ECONOMIC Learning
Module
DEVELOPMENT 11

Quarter 1
Organization & Management – Grade 11
Quarter 1– Self-Learning Module 11: PHASES OF ECONOMIC DEVELOPMENT

First Edition, 2020

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 Organization & SENIOR

Management HIGH
SCHOOL

Self-
Learning
Module
11

Quarter 1
PHASES OF ECONOMIC DEVELOPMENT

3
Introductory Message

For the facilitator:

Welcome to the Organization & Management for Grad 11 Self-Learning

Module on Phases of Economic Development.

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and

independent learning activities at their own pace and time. Further, this also aims
to help learners acquire the needed 21st century skills especially the 5 Cs, namely:
Communication, Collaboration, Creativity, Critical Thinking, and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Moreover, you are expected to encourage and assist
the learners as they do the tasks included in the module.

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For the learner:

Welcome to the Organization & Management Self-Learning Module on

Phases of Economic Development .This Self-Learning Module was designed to
provide you with fun and meaningful opportunities for guided and independent
learning at your own pace and time. You will be enabled to process the contents of
the learning material while being an active learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from

the entire module.

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MODULE
PHASES OF ECONOMIC DEVELOPMENT
11

EXPECTATIONS
At the end of the module, you are expected to:

1. identify what is the meaning of economic development;

2. discuss the different phases of economic development; and
3. differentiate the phases of economic development and its impact to the
business environment.

PRETEST
Directions. Read the statement carefully and choose the letter of the best
answer and write it on the blank provided.

1. The second stages of economic development primarily involves___________.

A. The complete abandonment of primary economic activities
B. External investment and greater exploitation of natural resources
C. The introduction of natural resources from external sources
D. The movement towards a fluid and meritocratic society
2. Rostow's Stages of Economic Growth include all of the following
EXCEPT____.
A. Traditional Society
B. Drive to Maturity
C. Postmodern Society
D. Take-off
3. The fourth stage of Rostow’s Stages of Development primarily involves ___.
A. the introduction of investment from external sources
B. the development of a large commercial economy and favorable integration
into the global economy
C. the development of environmental policies and social welfare policies
D. the complete abandonment of primary and secondary economic activities
the introduction of investment from external sources
4. The fifth stages primarily involves _____________________.
A. political unrest and revolution
B. large scale investment in manufacturing and infrastructure
C. the development of environmental policies and social welfare policies
D. consumerism and mass consumption
5. The third stages of development primarily involves_________________.
A. large-scale investment in manufacturing and infrastructure
B. a change in the social or political structure of a country
C. the complete abandonment of primary economic activities
D. the introduction of investment from external sources

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 RECAP
Let’s take a recap by answering the following:
1. Describe what the economy is?
2. Enumerate the role of business in the economy and explain each role.

LESSON

The role of business in the national economy is important. Through

profitable operations, companies and businesses can pay taxes to the government,
consumers are given to a variety of products and services to choose depending on
their buying power, and consumption of goods and services leads to monetary
circulation within the economy. To better understand how the economy develop,
there is a need for us to identify the different stages or phases of economic
development.

But before we proceed to the different stages or phases of economic

development. You should know what is the meaning of the following terms:

Economic development – is a total process which includes not only

economic growth or the increase in the given amount of goods and services
produced by the country’s economy, but also considers the social, political,
cultural, and spiritual aspects of the country’s growth. (Organization and Management Textbook
for Senior High School ISBN 978-971-07-3860-1 Copyright © 2016 by Vibal Group Inc. and Helen Ma. F. Cabrera,
Anthony DC. Altarejos, and Riaz Benjamin page 18)

Economic growth – increase in the given amount of goods and services

produced by the country’s earning.

One of the most famous historical models of economic development is the

ROWSTOW STAGES OF GROWTH MODEL. It was published by American
economist Walt Whitman Rostow and postulates that economic development occurs
in five basic stages:

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Stage 1: TRADITIONAL SOCIETY

In a traditional society, modern science and technology are either not

available or are not being systematically applied. A large proportion of productive
resources are devoted to agriculture such as hunting, fishing, and gardening. There
is low economic and social mobility and changes are seen negatively.

Stage 2: PRE-CONDITIONS TO TAKE-OFF

This stage of economic development is a result of the industrial revolution.

There is now an external demand for raw materials which social, political, and
economic changes.

1. A change in society’s attitudes towards science, risk-taking, and profit-

earning;
2. The adaptability of the labor force;
3. Political sovereignty;
4. Development of a centralized tax system and financial institutions; and
5. The construction of certain economic and social overheads like rail-roads and
educational institutions.

Stage 3: THE TAKE-OFF

This stage is characterized by dynamic economic development. The crucial

stage which covers a relatively brief period of two or three decades in which the
economy transforms itself in such a way that economic growth subsequently takes
place more or less automatically.
“The take-off” is defined as “the interval during which the rate of investment
increases in such a way that real output per capita rises and this initial increase
carries with it radical changes in the techniques of production and the disposition of
income flows which perpetuate the new scale of investment and perpetuate there by
the rising trend in per capita output.”

In other words, in this stage urbanization increases, industrialization

proceeds, and technological breakthroughs now occur.

Stage 5: DRIVE TO MATURITY

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 In this stage, economic and technical progress dominates. Multiple
industries expand and new industries or businesses take root. Consumption
increase, the rapid development of transportation, infrastructure occurs, and large
scale investment in social infrastructure such as schools, universities, hotels, and
hospitals take place.

Stage 6: AGE OF MASS CONSUMPTION

During this stage, the per capita real income increases to the level at which
a large number of people can afford consumption transcending the basic food,
shelter, and clothing requirements. They have disposable income beyond all basic
needs for additional goods. Meaning to say, most of the society live in prosperity,
and persons living in the society are offered both abundance and a multiplicity of
choices.

Although material wealth accumulation is among the concerns of genuine economic

development, its greater concern is the total improvement of the quality of people’s lives.
This, in turn, is related to sustainable economic development issues in a country that greatly
influences business management. Sustainable economic development ensures that the present
needs of a particular generation are fully met without endangering the ability of future
generations to also fully meet their own needs. Business managers must be conscious of their
decisions to avoid the abuse of ecological elements—air, water, and soil—as this will
threaten sustainable economic development. (Organization and Management Textbook for Senior High
School ISBN 978-971-07-3860-1 Copyright © 2016 by Vibal Group Inc. and Helen Ma. F. Cabrera, Anthony DC. Altarejos,
and Riaz Benjamin page 18)

*****

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 ACTIVITIES

Directions: On a piece of paper, write a 100-word short analysis containing

your thoughts and opinions. In writing your analysis, address the following
questions:

1. What are the benefits of establishing a small business?

2. How do businesses contribute to economic development while promoting social
responsibility at the same time?
3. What is the impact of the different stages of economic development to the
business environment?

WRAP UP

Let’s wrap up by answering the following :

1. Differentiate “economic development” with “economic growth?”

Explain your answer.

2. What are the different stages/phases of economic development?

VALUING

Point of Reflection

What do you think are the adverse effects when sustainable economic development
practices in our country are not implemented?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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___________________________________________________________________________
___________________________________________________________________________

POSTTEST
Directions: Read the sentence carefully and identify what is being asked.
Write your answer on the box provided.

1. It refers to an increase in the given amount of goods and services produced by the
country’s earning.

2. This stage where a large proportion of productive resources are devoted to

agriculture.

3. This stage is characterized by dynamic economic development.

4. It is a total process which includes not only economic growth or the increase in the
given amount of goods and services produced by the country’s economy.

5. A change in society’s attitudes towards science, risk-taking, and profit- earning is

under what stage of development?

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 KEY TO CORRECTION

Stage 2: Precondition to take off 5. A 5.

Economic Development 4. D 4.

Stage 3: Take-off 3. B 3.

Stage 1: Traditional Society 2. C 2.

Economic Growth 1. B 1.

Postest Pretest

R E F E R E N CE S
A. Books

Ng, Mark Francis G. “Organization and Management” Anvil Publishing, Inc,

2017; page 57-58
Cabrera, Helen Ma. F. ,Altarejos, Anthony DC. and Benjamin ,Riaz .
“Organization and Management Textbook for Senior High”, Vibal Publishing
Group Inc, 2016, page 18
B. Online Resources

https://www.investopedia.com/terms/g/gdp.asphttps://marketplace.regent-
college.edu/ideas-media/business-economy/what-is-the-role-of-markets

https://www.economicshelp.org/blog/glossary/the-role-of-firms-in-the-economy/

https://www.economicsdiscussion.net/articles/top-5-stages-of-economic-
development-discussed/1966

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