Dual economy

The term dual economy, according to the concept brought forward by Julius Herman Boeke, describes a state in which two different economic sectors in one country. These are on markedly different levels in terms of development. The types of technology available as well as the overall functioning of these two systems are very different, as well.

Such a set up is quite common in less developed nations, as well as those with a strong colonial character. In such countries, the first sector is directed towards addressing the domestic market, while the other caters to the demands of the international market. These two different systems may operate within the same industry. For instance, a agricultural nation may make use of outdated farming methods to generate its own food supply while a huge portion of the land is used by large international corporations to farm crops for export, using the most advanced technology.

On the other hand, dual economy can also be used to mean “hybrid economy.” A hybrid economy is a type of economic system which may exist on a national level, as well as on a local level. Under this, there are two different types of economies which exist in the given territory. These co-existing economies may be given equal or nearly equal attention. Ideally, these two economies should be able to complement each other, and the dual economy should be able to benefit from the strengths of each of its components. For instance, a dual economy which is mainly based on agriculture and manufacturing could help ensure that citizens benefit from both food security and access to more opportunities for industrial development and growth.