Dualism is a major characteristic of an under developed economy, Dualism refers to that condition of a country when two sectors (i.e., advanced or modernizer sector and the backward or traditional sector) exist side by side. For instance, we have modern industries and the old cottage industries working side by side as well as modem fanning and medieval farming being practiced at the same time, In other words, in an under-developed country, there is the bullock-cart economy and modern transport operating at  time, Usually, discrimination is confined to the trade sector mainly organised managed and financed by the foreign capitalist. Along with this advanced sector, there is a very large indigenous sector following traditional modes of production and distribution.

There is also Social Dualism mentioned by J. H. Booker in his book Economies and Economic Policy of Dual Society. The Society in under-developed countries is split into two parts, the upper and lower. The upper strata of society arc influenced by modern ways of living and thinking, not tied by customs, enterprising and pursuing profits and having unlimited wants, whereas the lower strata arc conservative, custom-ridden and follow the traditional modes of business and having limited wants, high preference for leisure and lacking in Enterprise. In the under-developed sector, increase in wages lead to. leisure and absenteeism ill industry, and prices do not affect farming which is customary. Agriculture, in short is not commercialize.

Types. In technical language. it may be called  Dualism as Benjamin Higgins mentions in his book Electronics Developmental. Adv aced sector is  intensive and the backward sector is labor-intensive. Rather, it has been amply demonstrated that in Guider developed countries too. there arc progressive elements in which workers, by and large. respond to increase in wages and farmers to increased prices. For instance, it has been shown that producers of rubber in Malaya and rice farmers in Burma responded to the continuously growing world demand for, and rising prices of, their products, It is the opportunity and the exist. pence of infra structural facilities  which matter. The fact is that in the under-developed economics. people would respond in the same way to opportunities available for increasing income as in the advanced countries.

There is another type of dualism, viz., financial dualism- modern banking institutions existing side by side with indigenous banking. This type has been discussed by H. Mint in his book. The Eco tunnies of Developing Countries. There exist a large  unorganized financial market and a small organised financial market working in isolation with one another.