Question

Discuss the theory of dualism. An explanation should be a bit detailed

Answer 1

Dualism theory assume a split of economic and social structures of different sectors so that they differ in organization, level of development, and goal structures. It differentiates between two sectors of economy which are:

• The traditional subsistence sector consists of small-scale agriculture, handicraft and petty trade, has a high degree of labour intensity but low capital intensity and little division of labour.
• The modern sector of capital-intensive industry and plantation agriculture produces for the world market with a capital-intensive mode of production with a high division of labour.

The concept was originally created by Julius Herman Boeke to describe the coexistence of modern and traditional economic sectors in a colonial economy. Dual economies are common in less developed countries, where one sector is geared to local needs and another to the global export market. Improvement in dualism ideas is the concealment of the conventional area by focusing on and extending the cutting edge part. In time, it is accepted that the stream down impacts will lessen and nullify dualism.

There are diverse speculations which are of the view that the destitution and underdevelopment of poor nations is credited to their dualistic character which are Social Dualism, Technological Dualism and Financial Dualism.