Dangers (problems) of Dualism
- It leads to regional imbalances with the rural sector always lagging behind the urban sector.
- It leads to rural urban migration and its associated negative effects due to concentration of jobs and other benefits in urban areas than in rural areas.
- It leads to technological unemployment in case capital intensive techniques are used in areas with abundant cheap labour.
- It creates difficulties in planning. That is, it becomes difficult to decide on which sector to develop first. For example the case of agriculture and industry.
- It reduces government tax revenue due to the existence of the poor majority with low taxable capacity and existence of a large subsistence sector.
- It discourages production and investment due to low aggregate demand for goods and services as the majority of the people are poor and a few are rich.
- Social cultural dualism breeds conflicts in belief and values and this leads to social dis-harmony.
CATEGORIES Economics
TAGS Dr. Bbosa Science
