In receni times, it has become fashionable to look upon the mines and plantations as ‘foreign enclaves’ which arc incapable of transmitting a satisfactory type of economic growth to the developing countries. The critics tend to put most of the blame on the fuel that they are concerned with primary production and not with manufacturing industry. Our analysis has, however, suggested that the failure of the mines and plantations to become the ‘leading sector’ in the underdeveloped countries was due, not to their producing primary exports as such, but to their cheap labour policy which has perpetuated the pattern of low wages and low productivity. With the system of using indifenoas labour mainly as an undifferentiated mass of brawn-power, it b not surprising that Adam Smith’s vision of the growth of the exchange economy and the division of labour ‘improving the skill aad dexterity of the people’ should remain largely unfulfilled. TJe ‘dualism’ between foreign technology aad management in the mines and plantations representing the ‘modern’ sector, and the rest of the economy representing the traditional sector has persisted.
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