The modern dual economy: a cost-benefit analysis

Abstract

Even now, in the last third of the 20th century, the 19th century dual economy still exists, in effect if no longer in name, over much of the developing world. Although nationally independent in Latin America for the past hundred years and now in Africa and Asia, many of the developing nations are still economically dominated by their past colonial masters. A unique illustration is Liberia, for Liberia solicited and got a dual economy on her own accord. And as such, she makes an interesting case in her uniqueness and as an example of the effects of the modern dual economy. It has been often commented upon, perhaps facetiously, that Liberia's problem has been that she never had the advantages of colonialism: well, not facetiously, since 1944 since the beginning of the still continuing administration of President William Tubman, she has been enjoying the advantages of colonialism. For the last 27 years, Liberia has been exchanging her resources rubber and more recently a massive mountain or two of iron ore- for only some reads, schools, clinics, public buildings, and individual fortune -with only little spill over into domestic investment and general economic activity and economic development she now has the classic dual economy - growth without development.