W. Arthur Lewis

Definition

W. Arthur Lewis was a distinguished economist known for his work on economic development and the dual economy model, which explains the coexistence of modern and traditional sectors in developing economies. His contributions are especially relevant in understanding how agriculture can play a pivotal role in economic growth, highlighting the relationship between agricultural productivity and overall economic progress.

5 Must Know Facts For Your Next Test

1. Lewis received the Nobel Prize in Economics in 1979 for his contributions to development economics, particularly his dual economy model.
2. His theory emphasizes the importance of transferring labor from the agricultural sector to more productive industries to boost overall economic growth.
3. Lewis argued that agricultural productivity is essential for feeding a growing population and providing surplus labor to support industrialization.
4. He highlighted that government policies should focus on improving agricultural productivity to enhance rural incomes and stimulate economic development.
5. Lewis's work remains influential today, as many developing countries still grapple with issues related to dual economies and agricultural transformation.

Review Questions

• How does W. Arthur Lewis's dual economy model illustrate the relationship between agriculture and industrialization?
  • W. Arthur Lewis's dual economy model illustrates that an economy can have both a modern industrial sector and a traditional agricultural sector coexisting. He explained that as labor moves from low-productivity agriculture to higher-productivity industries, overall economic growth occurs. This shift is vital as it allows for increased agricultural efficiency, providing surplus labor that can support expanding industries, thus driving further development.
• Discuss the implications of Lewis's theories on government policies aimed at enhancing agricultural productivity in developing countries.
  • Lewis's theories suggest that government policies should prioritize agricultural productivity improvements as a pathway to economic development. By investing in infrastructure, technology, and education within the agricultural sector, governments can increase crop yields and incomes for farmers. This, in turn, generates surplus labor that can transition into more productive sectors, fostering industrial growth and improving living standards across the economy.
• Evaluate the relevance of W. Arthur Lewis's economic principles in addressing current challenges in global food security and rural development.
  • W. Arthur Lewis's principles remain highly relevant today as global challenges such as food insecurity and rural poverty persist. His emphasis on enhancing agricultural productivity is crucial for feeding an increasing global population while ensuring sustainable economic development. By applying Lewis's insights to current policies, countries can create integrated approaches that link agriculture to broader economic strategies, addressing both immediate food needs and long-term growth objectives in rural areas.

Related terms

Dual Economy: A concept describing an economy that consists of two separate sectors: a modern, industrialized sector and a traditional, agricultural sector, each with different productivity levels.

Economic Development: The process by which a nation improves the economic, political, and social well-being of its people, often involving structural changes in the economy.

Agricultural Productivity:

A measure of the output of agricultural goods relative to the inputs used in production, crucial for enhancing food security and promoting economic development.