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Question 2: What is the most significant contribution of Arthur Lewis todevelopment?Introduction
It takes an extremely academic brilliance for scholars from the Third world countries,especially a black man to become a Noble Laureate due to the global inequality betweenthe North and South. In as much as few detractors have tried to discredit Late ProfessorArthur Lewis on his intellectual achievements, his contributions to development has beenand will always be appreciated globally by students and policy makers alike. One of hismost significant contributions in development is his thesis of Dualism (two-sector model)in early 1950s (Findlay, 1980). In answering this question, I am going to give a brief historical introduction of this theory before explaining this dual economy thesis on thefirst part of this paper. On the second part, I am going to pin- point the significance of thetheory as well as criticise the model before concluding that in as much as the model maynot work in some countries; some developing economies should adopt this modeldepending on the stage they are in the development trajectory.
Lewis and the English Model
Conceptual debates have always focused on which model or approaches countries mustadopt to get developed economically. Lewis model concurs with the classic period of theIndustrial Revolution between 1780 to 1840 in which real wage rate was relativelyconstant (Findlay, 1980). This theory is grounded on structural-change and focuses on theprocess by which underdeveloped economies can transform their home grown structuresfrom agrarian societies to a more modern and industrially diverse economy. Lewisemploys the tools of neoclassical price and resource allocation to describe thetransformation process that take place between the traditional sector and the capital sector(Todaro and Smith, 2009). This theory has become the model for development in surpluslabour Third World countries hitherto.According to this Lewis model, the underdeveloped economy comprises two sectors of traditional and modern urban industrial sector. In the traditional sector, the sector is