12) In Arthur Lewis' dual economy model (1954), the transformation of the "traditional" economy into a modern one through the disposition of agricultural surplus labor is facilitated by the "unlimited supply of labor" from "disguised unemployment in the farming sector.
The issue of how to dispose of the remaining agricultural surplus labor in China is an important one, not only for China's sustainable development but also for the development of the world economy.
The extent to which China will continue to organize its agricultural surplus labor will be critically determined by further economic reform, the revitalization of its agricultural sector, changes in trade structure, development of indigenous enterprises, incoming FDI flows, and the degree of openness of its domestic market after integration into the global economy.
Each settler established on new lands, contributed to employment not only by the job created on his homestead, but also by the volume of agricultural surplus he was ready to exchange for industrial products.
From the limits of devaluation which are based on low agricultural surplus, we can develop a scenario which assumes that surplus in agriculture can be increased (see Appendix 3).
Agricultural surplus is defined as the excedent of food production above food requirements of the productively employed labour in agriculture.
The lesson to draw from this is that agricultural surplus, or even self-sufficiency, makes for wealth as well as strength and the opposite almost invariably leads to poverty and weakness.
Many other countries have also risen from pov- erty to wealth despite the lack of agricultural surplus through other channels.