
Source: adapted from Friedmann, J. (1966) Regional Development Policy: A Case Study of Venezuela, Cambridge, Mass.: MIT Press.
- Stage 1 (Pre-industrial). The pre-industrial (agricultural) society, with localized economies and a small scale settlement structure. Each element is fairly isolated, dispersed and characterized by low mobility.
- Stage 2 (Transitional). The concentration of the economy in the core begins as a result of capital accumulation and industrial growth. The specific reasons behind this concentration are not too clear, location (better access) being a significant factor, but the fact remains that a dominant center emerges within an urban system to become its growth pole. Trade and mobility increase, but within a pattern dominated by the core even if overall mobility remains low. Among the numerous examples of such a phase is the early industrialization of Great Britain in the late 18th century or the beginning of the colonial incorporation of regions in Latin America, Africa or Asia.
- Stage 3 (Industrial). Through a process or economic growth and diffusion other growth centers appear. The main reasons for deconcentration are increasing production costs (mainly labor and land) in the core area. This diffusion is linked with increased interactions between elements of the urban system and the construction of transport infrastructures.
- Stage 4 (Post-industrial). The urban system becomes fully integrated and inequalities are reduced significantly. The distribution of economic activities creates a specialization and a division of labor linked with intense flows along high capacity transport corridors.