Sir Arthur Lewis: The 1979 Nobel Laureate and His Game-Changing Lewis Model Explained

Who Was Sir Arthur Lewis?

Sir Arthur Lewis was a groundbreaking economist renowned for his transformative work in development economics. In 1979, he earned the prestigious Nobel Memorial Prize in Economic Sciences for his influential contributions.

Key Highlights

• Sir Arthur Lewis was a trailblazer in development economics.
• He won the Nobel Prize in Economics in 1979.
• His hallmark contribution is the dual-sector growth theory, famously known as the "Lewis Model."

Charting the Life of Sir Arthur Lewis

Born in 1915 in Saint Lucia, Lewis demonstrated exceptional intellect early on, skipping two grades and completing school by age 14. Awarded a scholarship to the London School of Economics (LSE), he was the institution's first Black student and later became its first Black lecturer. His academic excellence earned him the highest praise, and he completed his PhD in 1940.

Lewis held pioneering roles as the first Black faculty member at the University of Manchester and later became the first Black full professor at Princeton University, where he taught for two decades. His tenure at Manchester was particularly significant, as it was here that he developed his groundbreaking ideas in economic development.

Understanding the Lewis Model

Published in 1954 in "Economic Development with Unlimited Supplies of Labor," the Lewis Model presents a powerful framework for how developing countries can accelerate economic growth.

The model identifies the existence of a large "subsistence sector" characterized by surplus labor and minimal capital investment. It proposes that economic progress occurs when a new "capitalist sector" emerges, absorbing excess labor from the subsistence sector and driving overall development.

Quick Insight

Economists often reference the Lewis Model to explain rapid economic transformations, such as China's remarkable growth in recent decades.

While based on simplified assumptions, the Lewis Model remains a vital tool for understanding how developing economies can transition from poverty to prosperity by fostering labor shifts and capital accumulation.

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