The economic takeoff is the moment in which the economic growth of a country is significant and sustainable over time.
This situation of economic well-being, begins a period of economic expansion unprecedented for the country. This growth must necessarily be driven by internal agents, through aggregate savings. It is also necessary to develop new technologies to expand the production possibility frontier.
Just as economic elements are needed for take-off, political and social factors are also needed. For example, a legal framework that allows investment , the protection of private property, copyright, among others. Likewise, a flexible society is required to change the productive models and with the capacity to adapt.
Conditions for economic takeoff
Some of the factors of vital importance for economic takeoff are listed below:
- Investment:An increase in public and private investment is required. The investment rate must ensure that national production grows at a faster rate than the population.
- Manufacturing:The activity that provides the greatest value to the production chain is manufacturing. The more developed this sector is, the greater the diversification of the economy. This increases the probability of achieving sustainable and constant growth.
- Political and socio-economic environment:The social structure must allow takeoff in the sense of eliminating cultural barriers of consumption. It also requires a regulatory framework that allows the development of the economy.
Features of economic takeoff
The main characteristics of an economy that is going through a period of economic takeoff are:
- The savingsof society is used by companies to finance the production process.
- With the increase in savings, financial institutions proliferate as well as the diversification of the products they offer.
- The takeoff is accompanied by an important commercial opening. This stimulates the commercialization of goods and services, and the flow of capital.
- Technological progress occurs and increases with investment in research and development.
- Political power shows the will to boost the economy by guaranteeing the conditions for growth.
- There is a total transformation of the country, culturally, economically, institutionally, productively.