W. Arthur Lewis (1954), West Indian Economist
What concept did he come up with, explain
what is the critique of this
"Economic development wiht unlimited supplies of labor"
- Dual Economy
- Economies in underdeveloped countries are "dual" - advanced/modern sectors of the economy coexisted with traditional "backwards" sectors
– important in this sector are manufacturing industry and estate agriculture (plantations), either private or state owned.
2. Subsistence /traditional
– made up primarily of small scale agriculture (farming families), Lower per capita output than capitalist sector
- largely agrarian labour surplus societies had to industrialise, so that labour requirements in industry were high enough to make labour more scarce and promote increase in wages.
- Ideas of the process of development – growth of capitalist sector at expense of subsistence sector.
o Ultimate goal is absorption of subsistence sector by capitalist sector since most labour would come from unemployed subsistence agricultural labour.
- significant influence on development thinking in 1950s and 60s
- Critique: did not recognise importance of small scale agriculture in development process. Raising
- productivity in rural sector could be an important development objective rather than a constraint (e.g. green revolution).