ECON 313 Lecture 12: 12-Econ 313 Notes
15 Feb 2017
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Example: south africa dual economy natal vs transkei. Illustrated well the dual economy, the traditional and modern sectors: natal: private property rights, functioning legal system, markets, commercial agriculture, and industry, transkei: communal property in land, and all powerful traditional chiefs. Implication of the lewis model: change transkei into natal, however this was man-made, not the natural process of economic growth. In the 19th century, transkei was densely populated, attracted settlers. Africans: this was accomplished by the natives land act of 1913: 87% of land for europeans and 13% for africans. Black africans barred from any occupation in white-owned land other than labor tenants. Reintroduced chiefs: co(cid:374)se(cid:395)ue(cid:374)(cid:272)es: (cid:373)i(cid:374)e(cid:396)"s (cid:449)ages fell (cid:1007)(cid:1004)% Was not an inevitable outcome of the process of development, but it was created by the state. It was different than the lewis model, there would not be a process of the unskilled workers from the traditional sector gradually becoming educated and skilled.
