Download 3_Economic strategy / Regional indicative planning

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Development Design - Economic Dimension
1
Economic development theories and concepts
The growth pole theory and growth centres strategy
a.
Background: The growth pole theory was developed in France in the 1950s. Initially it did not focus on
spatial poles but on industrial poles of growth, i.e. sectors that were accorded a key position for
stimulating investments in other sectors. This idea was then transferred to the regional dimension at
the end of the 1950s and gained worldwide popularity with planners and politicians.
b.
Statement of problem: Peripheral regions typically lack large industries that can stimulate growth.
Which industrial sectors would be stimulate economic growth in a peripheral region, and thus initiate
a growth cycle by locating some key industries there in order to overcome regional disparities? The
strong concentration of French industry within the Paris area is a good example of the problem,
whereas the role of mining industry in the development of the Ruhr-area is seen as a shining example
of an alternative.
c.
Core hypothesis: The theory is based on two different hypotheses:
-
enterprises which are linked to key industries by delivering products to them tend to locate
in spatial proximity to these key industries, and
-
the industries which settle at a centre within a peripheral region give a positive impulse for
regional development.
d.
Consequences for planning: Regional planners appropriated the assessments of the growth pole
theory under the slogan "decentralised concentration". The respective policy procedures concentrate
on identifying a suitable site within a peripheral region as a potential growth centre and providing
special incentives (subsidies, credits, infrastructure, etc.) for locating industrial enterprises at such a
location. It is expected that after the establishment of these industries a spontaneous self-reinforcing
growth process would develop. In some cases key industries were specially motivated by
governments to settle in peripheral centres.
e.
Example: Nigeria - as with many developing countries - pursued a growth centre strategy in order to
limit the problems of agglomeration in the capital Lagos (where most industrial enterprises are
concentrated) and to counteract the dissatisfaction of provinces not benefiting from the boom of
industrialisation in the 1970s. Despite numerous incentives, despite investment subsidies and the
establishment of governmental enterprises in peripheral regions the majority of investors continued to
utilise the location advantage of Lagos (harbour, proximity to the administration and to markets).
Above all it turned out that decentrally located enterprises were not integrated into the local economy
but were almost exclusively linked to their mother firms overseas. The boom in the centres led to an
increased out-migration from the countryside and to a decrease in agricultural production so that
even textile and oil mills, which had settled in the former cotton and groundnut areas, now had to
import their raw material from abroad.
f.
Assessment: The two core hypotheses of the growth centre strategy have proven to be not valid in
reality. The industries connected by supplying goods to enterprises in the growth poles normally do
not settle in growth centres but settle at sites where they find suitable market outlets, raw material
supply or other location advantages. And secondly, the industries within growth centres do not
spread out positive development impulses to the hinterland, but turn out to be dependent and
externally steered branches, which have an increased drain effect as the only perceivable effect on
the surrounding area.