The Emergence of a “New Dual Economy” in the Settlements of Global Economy-Dependent Island Nations: A Case Study of the Philippines and Fiji

This study introduces the concept of a “new dual economy” that arises in settlements of global economy-dependent island nations because of income source diversification strategies. Rather than residents of rural agricultural and fishing communities migrating permanently to cities in a one-sided manner, they maintain their relationship with their hometowns while engaging in livelihood activities directly or indirectly within their settlements. Then, using case studies from the Philippines and Fiji, this study elucidates the conditions and mechanisms that drive this phenomenon through the lens of development economics theory. It finally discusses the implication of this “new dual economy” on the economic development of island nations. Japan needs to learn from the experiences of the two countries that have successfully tamed globalization and achieved inclusive economic growth.