GDP is important because it is a leading indicator of a country's economic health. It gives economists an idea of the nation's financial viability. <span>The GDP calculates the economic value of all produced goods and services generated by the country. Keeping track of it you would know or maybe predict the future trends of the economy of a country. Hope this answers the question.</span>
The four phases of modernization proposed by economist Walt Rostow in 1960 are:
- "Pre-condition": or need for an improvement in the way a particular activity is being done in society.
- The "pre-condition takes off": Efforts targeted to assess this need start, including the production of raw materials and knowledge developments.
- "Take-off": Knowledge previously created during the latter phase is diffused and adopted by the masses.
- "Maturity": The development has reached a peak where it is common knowledge and the impact over society has already occurred.