Economic Dualism (1 Viewer)

[cucum3rs]

I came across the term 'economic dualism' in my text book today. it is defined as "a common feature of less developed countries that have a colonial legacy, which engage in conspicuous consumption in a formal commercial economy with a less formal economy dominated by subsistence agriculture (no surplus) and the use of barter.

can someone please explain this to me?

thanks in advanced

 

[basko911]

I came across the term 'economic dualism' in my text book today. it is defined as "a common feature of less developed countries that have a colonial legacy, which engage in conspicuous consumption in a formal commercial economy with a less formal economy dominated by subsistence agriculture (no surplus) and the use of barter.

can someone please explain this to me?

thanks in advanced

I think it refers to a dual economy where the poor survive by 'subsistence agriculture' ie agricultural work that only provides for the needs of the people working it (no surplus to sell) or if there is a surplus to sell it is bartered with for other basic living essentials. But on top of (or parallel to) this the rich live in a market economy (where cash is the medium, as opposed to trading commodities)

 

[bikapika]

Its like China. You have rich consumers in metropolitan areas like Shanghai and Beijing who enjoy living standards of a developed economy in Europe while the majority of the population in regional areas who have living standards of Africa.