dual economies

dual economies

or

dual societies

the coexistence of two different types of economies or societies within one nation state or colony The term was originally coined by Boeke (1953) to describe the situation in colonial countries in which capitalist and noncapitalist sectors coexisted, but operated according to separate social and economic logics. Later, in MODERNIZATION theory, the meaning was taken up to refer to modern and traditional sectors within THIRD WORLD societies. More recently, the term has been applied to economies, such as Japan's, which are structured around a few very large corporations and a mass of small firms with very different labour relations, profitability market control and security The concept was criticized by FRANK (1967a) and other DEPENDENCY theorists. It implies that the two sectors are separate, whereas the counter-argument is that they are closely interlinked, with the modern, capitalist, large-scale sector dominating and shaping the other.